Thailand may sell more than 10 billion baht of rubber after the government invited buyers to Bangkok to boost sales and bolster prices amid a glut.
About 150 foreign buyers from 28 countries attended an event on Monday that was organised by the government to match buyers and sellers, said Commerce Minister Apiradi Tantraporn. Increasing demand will help lift local prices, she said.
Thailand is seeking to boost sales after prices tumbled to an almost seven year low in January as slowing economic growth in China weakened demand from the biggest consumer. Along with Indonesia and Malaysia, Thailand agreed this month to cut shipments of natural rubber. Thailand has also agreed to buy rubber from growers at above-market prices.
“The export-reduction programme together with tightening supply during low production season will continue to help support prices until tapping season resumes,” said Chaiyos Sincharoenkul, president of the Thai Rubber Association.
The Bangkok event may also promote investments, including car-tire manufacturing, and may boost manufacturing of processed products, he said.
Export prices of Thai rubber rose 7.5% this year, recovering from a fifth annual loss in 2015. Rubber in Tokyo and Shanghai have lost 2.5% this year.
