DTN: Thailand becomes world’s biggest rubber exporter

[webfact]

DTN: Thailand becomes world’s biggest rubber exporter

 

   

BANGKOK (NNT) - The Department of Trade Negotiations (DTN) has disclosed that Thailand is the world’s largest rubber exporter, with China as the biggest market thanks to its free trade agreements with many countries.

 

Mrs. Auramon Sapthaweetham, DTN Director General, disclosed that she had followed up on the situation of Thai rubber exports. In 2018, Thailand exported rubber worth over 4.6 billion US dollars, which accounted for 1.82 percent of total Thai exports.

 

China was the biggest market importing Thai rubber worth 1.96 billion US dollars, 43 percent of total Thai rubber exports. Other major markets were Southeast Asian nations, the United States, Japan and South Korea.

 

The rubber export leadership resulted in part from Thailand’s 13 free trade agreements with 18 countries because they have played a key role in eliminating import tariffs on rubber in partner countries and provided trade opportunities which help boost the export of Thai rubber products.

 

-- © Copyright NNT 2019-09-16

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[Isaan sailor]

Of course ChiComs now the biggest rubber customer.  All part of the deal.  Push up the Baht so no one else will buy Thailand’s exports.  With a decimated economy, China steps in as the hero.  Another SE Asian country falls to Belt & Road.

[Damrongsak]

I love the smell of Chinese rubber products.  It has the subtle smell of spoiled (fermented) third-rate rubber with overtones of various and unknown toxic chemicals.  Whatever they need to dispose of at the moment. Stinks to high heaven.

[neeray]

So now it's THE RUBBER HUB !

 

LOL

[Eric Loh]

Why crow about this rather mundane news. Thailand has been the world biggest rubber exporters for years by virtue of the world largest cultivation area of 3.5 million hectares. The second largest cultivation area is Indonesia and miles away at 3.15 million hectares. Rather we should be concerned that the exports consist of natural rubber rather than value added rubber products. 

[PatOngo]

6 hours ago, webfact said:

Thailand becomes world’s biggest rubber exporter

Is the exported rubber bigger than the ones available in 7-11?

[Srikcir]

7 hours ago, webfact said:

Thailand is the world’s largest rubber exporter

And has to be the world's biggest profit loser.

It's about oversupply of rubber that depresses the global rubber prices, not to mention the global tend towards less rubber demand.

That's why every year the Thai government since 2014 has annually subsidized the rubber growers at about 30% of world market price in order to make a modicum of profit. That in turn encourages farmers to increase production that in turn requires larger subsidies. Like with rice, Thailand can't afford to be the world's largest exporter of its largest agriculture production.

 

With regard to Thailand rubber sales to China, reported revenues may be "complicated." The trade agreement (2015?) between Thailand and China allows Chinese purchases in yuan without conversion to baht. Essentially Thailand likely gets no trade advantage from an appreciated baht over time for a set quantity of product..

[Mavideol]

8 minutes ago, Srikcir said:

And has to be the world's biggest profit loser.

It's about oversupply of rubber that depresses the global rubber prices, not to mention the global tend towards less rubber demand.

That's why every year the Thai government since 2014 has annually subsidized the rubber growers at about 30% of world market price in order to make a modicum of profit. That in turn encourages farmers to increase production that in turn requires larger subsidies. Like with rice, Thailand can't afford to be the world's largest exporter of its largest agriculture production.

 

With regard to Thailand rubber sales to China, reported revenues may be "complicated." The trade agreement (2015?) between Thailand and China allows Chinese purchases in yuan without conversion to baht. Essentially Thailand likely gets no trade advantage from an appreciated baht over time for a set quantity of product..

but the DTN doesn't provide full details, just said they are number one but didn't mention under what conditions/agreements

[Eric Loh]

1 hour ago, Eric Loh said:

Why crow about this rather mundane news. Thailand has been the world biggest rubber exporters for years by virtue of the world largest cultivation area of 3.5 million hectares. The second largest cultivation area is Indonesia and miles away at 3.15 million hectares. Rather we should be concerned that the exports consist of natural rubber rather than value added rubber products. 

I misquoted. Thailand cultivation area is actually 4.5 million hectares. 

[Cadbury]

1 hour ago, Mavideol said:

but the DTN doesn't provide full details, just said they are number one but didn't mention under what conditions/agreements

Mrs. Auramon simply stole the story from this website which doesn't give the those condtions/agreements.

Her "following up" as she puts it was just a crude form of cut and paste.

http://www.worldstopexports.com/natural-rubber-exports-country/

[swissbie]

1 hour ago, Srikcir said:

And has to be the world's biggest profit loser.

It's about oversupply of rubber that depresses the global rubber prices, not to mention the global tend towards less rubber demand.

That's why every year the Thai government since 2014 has annually subsidized the rubber growers at about 30% of world market price in order to make a modicum of profit. That in turn encourages farmers to increase production that in turn requires larger subsidies. Like with rice, Thailand can't afford to be the world's largest exporter of its largest agriculture production.

 

With regard to Thailand rubber sales to China, reported revenues may be "complicated." The trade agreement (2015?) between Thailand and China allows Chinese purchases in yuan without conversion to baht. Essentially Thailand likely gets no trade advantage from an appreciated baht over time for a set quantity of product..

Rubber prices peaked in 2011. Millions of trees were then planted everywhere, especially in the Northeast. Here in the South (Songkhla Province), where they have been growed for a long time, they are cutting them down more and more, as there is no profit in this business anymore and finding labour is difficult (prices too low and half of the profit goes to the owners).