The price of rubber in Thailand has dropped to the lowest seen since 2009, decreasing 19 per cent month-on-month.
According to Mintec, the cost has declined by 64 per cent since its peak in 2011. Thailand is the world’s top producer of rubber.
The local market price in Thailand is currently 63 Thai Baht (£1.16) per kilo for rubber latex. Mintec said rubber prices in Thailand have been gradually falling over the past three years due to rising production rates. It predicted production would increase by another 4 per cent, totalling four million tonnes per year in 2014.
“Adding to this, the Thai baht is at its weakest level since the economic collapse in 2011, which is also keeping the rubber prices low,” said Mintec. “However, prices may see an increase in the short term as output has recently slowed due to many rubber farmers participating in anti-government protests in Bangkok.”
Source: Supply Management
Published: 30 Jan 2014