Industry News

December 27, 2019 2019
Natural rubber price decreases sharply is impossible

 In the first half of 2019 delayed the cutting of the rubber because of El Niño phenomenon and affecting production.  Concerning about production cuts have been heightened by the spread of fungal diseases from Indonesia to southern Thailand.

It was reported that 382,000 hectares of rubber plantations in Indonesia were affected, with a yield of about 1,158 kg / ha in Indonesia, with a cutting rate of 80% . The total yield was 350,000 to 370,000 tons. Taking into account the treatment cycle, the yield affected is less than 100,000 tons. In addition, Thailand's production is expected to be affected by the 100,000 tons level. Thus, at worst, the impact on production of 400,000 tons would be less than 3 per cent of the annual production of about 14 million tons. In addition, consider the flow of new output, as well as the buffer effect of inventory. Therefore, price increases can occur, but it is very difficult to obtain the rocket-like upward momentum.


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