On August 29, the Rubber Authority of Thailand showed that the NR price in Thailand would be increasingly stable supported by the Thai Rubber Price Stabilization Fund.
According to Titus Suksaard, chairman of the Rubber Authority of Thailand, the Thai government and rubber exporters had invested 1.02 billion THB (about 204 million RMB) to co-bulid the Rubber Price Stabilization Fund. The fund was used to purchase rubber from both the spot market and the futures market. Since July, the price of RSS 3 had increased from THB 49/kg (around RMB 9.80/kg) to THB 58–60/kg (RMB 11.60–12.00/kg).
He said that the price of Thai NR latex was around THB 52/kg (RMB 10.04/kg). The Rubber Authority of Thailand planned to provide a loan of 10 billion THB (around 2 billion RMB) to NR latex producers, and producers could directly purchase the feedstock from the farmers. He thought that the price of NR latex was likely to become the benchmark price in the rubber market. He also estimated that about 100kt NR latex would be consumed supported by the loan. The rubber price was likely to increase to THB 70/kg (around RMB 14/kg) in 2017.
The rubber price in Thailand was at a low price level for a long time, due to the import volume decline from the large importers and the suspended procurement of some investors. The price slumped to THB 36.95/kg (around RMB 7.39/kg) in January-February, 2015, hitting a record low in the past 13 years.
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Improving and stabilizing the rubber prices was the main focus for Thai government and the producers. Besides the Rubber Price Stabilization Fund and the loan policy, the Thai Cabinet also passed a 1.8 billion THB budget to stimulate the rubber utilization nationwide. Thai rubber price was likely to increase and stabilize in the short term.
- sci99.com
