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Rubber prices could hit Bt100 a kg


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Rubber prices could hit Bt100 a kg

By THE NATION

 

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The Rubber Authority of Thailand estimates that rubber prices could soon reach Bt100 per kg, significantly above the government’s guaranteed price, after many rubber producing nations reeled under floods while demand from China jumped due to the country's local governments promoting the use of small vehicles.

 

“As of October 27 the price of third-grade smoked rubber sheet in Nakhon Si Thammarat was Bt77.72 per kg, about 30 per cent higher than the guaranteed price of Bt60 per kg, while the price of latex was Bt68.5 per kg, about 20 per cent higher than the guaranteed Bt57,” said the authority’s governor Nakorn Tangavirapat.

 

“These prices are the highest in three years and eight months, and they could soon surpass the Bt80-per-kg milestone and reach Bt90-100,” he said.

 

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“The reason behind rising rubber prices is reduced output due to floods, especially in southern China and Vietnam, that have affected several countries which produce rubber. Thailand also reported around 10 per cent lower-than-normal rubber output due to frequent rains in the South, which have prevented farmers from harvesting latex.”

 

Furthermore, rubber demand in China has increased rapidly after local governments started promoting the use of small vehicles, prompting tyre manufacturers to increase production volumes by around three-fold,” Nakorn said.

 

“We estimate that this year’s rubber exports would be roughly the same as last year's at 4.1 million tonnes, but the price will be around 30 per cent higher than last year’s total export value of Bt187.12 billion,” he added.

 

Source: https://www.nationthailand.com/news/30396907

 

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-- © Copyright The Nation Thailand 2020-10-28
 
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6 minutes ago, Airalee said:

Let’s all remember this next time they come asking for subsidies.

 
  • China. In 2012, China provided $165 billion in agricultural subsidies. ...
  • Indonesia. ...
  • Japan. ...
  • South Korea. ...
  • India. ...
  • Haiti and US rice imports.      hardly uncommon..
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13 minutes ago, from the home of CC said:
 
  • China. In 2012, China provided $165 billion in agricultural subsidies. ...
  • Indonesia. ...
  • Japan. ...
  • South Korea. ...
  • India. ...
  • Haiti and US rice imports.      hardly uncommon..

Where did I say it was uncommon?

 

What do you think they’ll spend their windfall on?  Fortuner or Pajero?

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1 minute ago, Airalee said:

Where did I say it was uncommon?

 

What do you think they’ll spend their windfall on?  Fortuner or Pajero?

well, my relatives down south will probably spend it on their children's school fees and paying off debts accumulated during the times when they could hardly give the latex away let alone make a living.. 

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6 minutes ago, from the home of CC said:

well, my relatives down south will probably spend it on their children's school fees and paying off debts accumulated during the times when they could hardly give the latex away let alone make a living.. 

That’s a good thing.  
 

Should the end users of latex now get a purchase subsidy from the government?  

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If history says anything about higher rubber prices in Thailand, farmers will plant more rubber trees. Then at the time to harvest, prices will have substantially fallen much lower as world demand normalizes and the initial price benefit reversed. And possibly more unpaid debt.

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44 minutes ago, Srikcir said:

If history says anything about higher rubber prices in Thailand, farmers will plant more rubber trees. Then at the time to harvest, prices will have substantially fallen much lower as world demand normalizes and the initial price benefit reversed. And possibly more unpaid debt.

You are aware that from planting to first crop is approximately 7 years! 

Have to be a pretty perspicacious farmer to predict the cycle 7 years ahead in this day and age. 

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all trees will be cut down.  only rubber trees planted and the ecosystem will be ruined for all of eternity.....or like a few centuries  which is the same to us

 

global warming will take the Earth to 98798078997 C 

 

luckily if over 50 it's probably not your problem.

 

cut down the trees, make money from the rubber, then retire in another country.  this is capitalism...

 

 

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20 hours ago, Airalee said:

Let’s all remember this next time they come asking for subsidies.

I'm waiting for the government to claw back what's been paid out.

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