RUBBER PRICE HAS BEEN GRADUALLY RECOVERING

According to the Import and Export Department (Ministry of Industry and Trade), in the middle of 10 days of the month, rubber prices on Asian exchanges tend to increase, but the increase is still limited.

Specifically, at the Osaka Commodity Exchange (OSE), rubber prices rebounded after falling to an 11-month low.

On September 17, the price of RSS3 rubber for October delivery in October 2021 was at 196.4 yen/kg (equivalent to 1.78 USD/kg), an increase of more than 3% compared to the previous 10 days, but still lower than 3% over the same period in 2020.

 RSS3 rubber price in October  2021 on the Osaka Exchange (OSE) from the beginning of August 2021 to the present (Unit: Yen/kg). (Source: cf.market-info.jp)

On the Shanghai SHFE, on September 17, the price of RSS3 rubber for October delivery in October 2021 traded at 12,870 yuan/ton (equivalent to 1.99 USD/ton), up 2.2% over 10 days. earlier and increased by 11.4% over the same period in 2020.

In Thailand, on September 17, the price of RSS 3 rubber offered for sale was at 56.4 Baht/kg (equivalent to 1.69 USD/kg), an increase of 1.5% compared to the previous 10 days, but still down 2 .5% over the same period in 2020.

According to the Import-Export Bureau, rubber prices in Japan increased on expectations of a new stimulus package and support from the Central Bank, but concerns about slowing demand in China and falling global auto production have limit growth.

Data from China showed growth in the country's factory and retail sectors slowed in August, with output and sales growth hitting a 1-year low as the coronavirus outbreak and supply disruptions threaten the economic recovery.

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Meanwhile, China's rubber imports also tend to slow down. According to data from the General Administration of Customs of China, in August 2021 China imported 529,000 tons of natural and synthetic rubber (including latex), worth $971.3 million, down 24.3% in volume, but increased by 8.8% in value compared to August 2020.

Accumulated in the first 8 months of 2021, China imported 4.35 million tons of rubber, worth 7.75 million USD, down 3.6% in volume, but up 23.7% in value over the same period of 2020.

In Thailand, to stabilize rubber prices, the Thai Government recently approved a plan to ensure a rubber floor price for the 2021-2022 crop year, with a commitment to spend 10 billion Baht for the production plan for the next year. 

The Thai government says the plan will affect 1.8 million households with a total of 17 million Rai (1 Rai equals 0.16 hectares) of rubber plantations. Accordingly, this policy will ensure the purchase of rubber latex products at floor price in case the market price falls below the standard level.

Specifically, rubber farmers will be provided with a maximum guaranteed price of 60 Baht/kg for raw rubber (equivalent to 1.82 USD); 57 Baht/kg for latex. 

Under this program, qualified rubber workers will receive 40% of the price, while orchard owners will receive 60%. The project is implemented by the National Bank of Agriculture and Cooperatives of Thailand and will start from October 2021 to September 2022.

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