BANGKOK, 22 Feb 2014, Both the government and private sectors have indicated that the global price of natural rubber will begin to recover within the next 2-3 months.
Both sources agree that the political turmoil has no bearing on the local natural rubber price, while demand from world’s largest economy, China, is rising.
According to the Association of Natural Rubber Producing Countries (ANRPC), the rubber output in various natural rubber producing countries has dropped thanks to the colder-than-usual weather conditions.
The ANRPC stated that cold weather had only slightly affected Thailand’s natural rubber production, which had declined by as little as 5%.
Meanwhile, the Thai Rubber Association revealed that since para’s prices in Thailand had plunged, local producers had been making an effort to sell para rubber stockpiles, nearly depleting the national stock. The Association reports only a small rise in demand would drive the price strongly.
The agency also indicated China, the world’s biggest rubber consumer, is expected to increase rubber consumption to as much as 8.3 million tons this year. It predicts Thailand could increase its rubber exports by 11%.