Time：2020-06-30 14:10:46
Thailand and other top rubber producing countries in the world are coming out of their worst quarter in a decade, but the road to recovery looks fragile, according to foreign media on June 16.
While the consumption of rubber glove manufacturers continues to rise, demand from car manufacturers, traditionally the largest customer base, is still declining. At the same time, China's restart of the economy has added to some optimism, although concerns remain elsewhere in the world, including the US.
It is understood that in the futures market, rubber prices fell by 27% in the first quarter, the worst performance since 2008, and has risen 14% since then. However, the spot market has not changed much because there is not enough demand for tire factories. Prices are unlikely to rise again because, without demand, many rubber factories, including those supplying to Goodyear and Bridgestone, the big tire makers, are unable to sell spot goods and are forced to deliver to the futures market instead.
Due to the unclear prospect, the main rubber producing countries (Thailand, Indonesia, Malaysia) are implementing different countermeasures. Thailand chooses rubber as raw material for roads and guide posts to increase domestic consumption; Indonesia believes that China's demand is helpful, but total exports are still declining and there is no recovery before the end of the year; Malaysia is betting on rubber gloves as its Savior
The following are the views of major rubber producing countries on the rubber Market:
1. Kajohnjak nuanpromsakul, acting director of Thailand Thailand rubber authority
Car tire exports have fallen, but latex prices have hit the top of the film, and the outbreak has boosted demand for concentrated latex for medical devices such as rubber gloves. Thailand is expected to export 3.7 million tons of rubber this year, down 5% from 2019. Although leaf disease, which destroyed plantations last year, has eased this year, there are still four provinces that will reduce supply.
2. Pattarapol wongsasuthikul, CEO of Thailand Thailand rubber group
Globally, access to the market has fallen by about 10% in the past six months, due to extreme weather conditions in rubber producing countries. Thailand's drought in March and April has reduced glue production during tapping.
3. Zairossani Mohd nor, director general of Malaysia Malaysia rubber Bureau
Malaysia's rubber industry is expected to grow by 6.5% over 2019 to RM33 billion (US $7.7 billion).
The export of rubber gloves is planned to climb 15% to 20 billion ringgit this year. It plans to export 225 billion rubber gloves to the world, increasing its global market share from 62% to 65%.
Natural rubber exports are down 10% due to a slowdown in demand, especially in the first five months of 2020 from China.
The government is providing incentives to small growers to encourage tapping, subsidizing costs, including making up the difference when prices fall to a set level, and cash subsidies in the monsoon season.
4. Moenardji soedargo, chairman of Indonesia Indonesia Rubber Association
Shipment has been delayed or cancelled and there is no business. If there is a recovery in the fourth quarter, it will be outstanding.
Although the demand for rubber gloves is growing, the design of the Indonesian rubber industry does not have the capacity to supply this sector.
Malaysia has a business opportunity from this epidemic, but for us, changing industrial design is not something we can do in a year or two.
Rubber farmers are delaying tapping because of the low price and demand.
