BANGKOK, KUALA LUMPUR(Commodity Online): A rally can be expected in international rubber prices on account of the floods in Thailand and Malaysia.
If the floods continues to persist, production in these Southeast Asian countries may decline by at least 100,000 tons a month, according to International Rubber Consortium(IRCo).
The figures on supply loses are expected to be released after the New Year holidays. Prices are likely to increase on floods and limited supply as Thailand is poised to enter low-output season next year.
Since 17 December 2014, 7 Southern provinces of Thailand have been experiencing severe flooding due to heavy rains. The provinces are Surat Thani, Songkhla, Nakhon Si Thammarat, Phattalung, Narathiwat, Pattani and Yala, covering more than 1.53 million hectares of Natural rubber(NR) plantation area, equivalent to 43% of total NR plantation area in Thailand, according to IRCo website.
Since 17 December 2014, 7 Southern provinces of Thailand have been experiencing severe flooding due to heavy rains. The provinces are Surat Thani, Songkhla, Nakhon Si Thammarat, Phattalung, Narathiwat, Pattani and Yala, covering more than 1.53 million hectares of NR plantation area, equivalent to 43% of total NR plantation area in Thailand, IRCo reported.
