The global market is currently in its fourth year of surplus of natural rubber. The excess supply situation has caused stocks to pile high and prices are falling steadily. It is estimated that global rubber production which reach 11.18 million tones in 2015, a growth of 5% year-on-year. Asia accounts for 93% of the world natural rubber production with Thailand being the largest producer followed by Indonesia and Vietnam. The rubber industry in Thailand is currently faced with lack of demand and large stock piles. This is primarily due to a fall in demand from China which is the world’s largest rubber consumer.
Rubber prices have fallen approximately 30% in 2014 and rubber producers are seeing a fall in revenue. The Thai Government is encouraging farmers to reduce rubber production and switch to producing palm oil. There are plans to initiate cutting down almost 3,50,000 rubber trees annually to counter the oversupply and fall in prices.
The report Thailand Rubber Market Analysis 2015′ highlights key dynamics of Thailand’s rubber sector. The potential of the sector has been investigated along with key challenges. The current market scenario and future prospects of the sector has also been studied. The competitive landscape of the sector has been examined and the report contains profiles of players such as Thai Rubber Latex Corporation, Sri Trang Agro-Industry Plc., World Rubber Ltd., Bridgestone Corporation and Top Glove Corporation Berhad. The report also contains latest industry-related opinions.