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WELCOME TO THE THAI RUBBER ASSOCIATION |DAILY RUBBER PRICES on 20 September 2019 (in US cents/kg) : TRA: STR20 138.57  RSS 3  152.02 GAPKINDO: SIR20 N.A. | MRE: SMR20 134.15 | RTAS: TSR20 132.60  RSS 3  146.00 | VRA: SVR10 138.50ARDC: CSR10 N.A.|

   Enhancement of Thai Rubber Industry’s Competitive Advantage

Production and exports of Thai rubber is currently signaling a slowdown. Export of Thai primary-processed rubber in the first half of this year reached 2.31 million tons, down 9.18 % yoy. The year-to-date export value touched US$ 3.12 billion, down 14.46 % yoy (Custom Department). This downward trend is due to the slowing economy affected by Us-China trade war, which resulted in slowing global rubber consumption demand, especially in Chinese market, the world’s largest.

Thai rubber export sector is facing various challenges which impede competitive advantage of Thailand as compared to other rubber producing countries. Among those challenges are loan, currency exchange, cost of production and trade benefits. Financial institutes exercise more caution in granting loans to rubber entrepreneurs due to rubber business risks. Certain entrepreneurs ceased their operation due to insufficient financial support.

Chinese investors run joint venture with Thai rubber processers while big entrepreneurs expedite the listing of their companies into security exchange of Thailand for fund raising. Secondly, due to the continued appreciation of Thai baht to its 6-year high, Thai rubber prices are relatively more expensive than those of Malaysia and Indonesia. Thirdly, tyre manufacturers imported rubber from alternative markets like Africa and Latin America as well as newcomer like Myanmar due to lower cost of production and lack of cess. Fourthly, Thailand’s international trade negotiation were stagnant before the new government being elected. Meanwhile, Vietnam was successful in negotiating FTA with the EU. Malaysia, which is already a member of CPTPP enjoys tariff-free trade, which is a competitive advantage.

Thai government is expediting its schemes to enhance Thailand’s competitive advantage. Ministry of Agriculture and Cooperatives announced a policy “Marketing-led agriculture” to stay in tune with current global situations, maintain existing markets and find new markets. In addition, Ministry of Commerce is expediting the negotiation for FTA with the EU and pushing forward Thailand as the production and distribution base for the EU market. Furthermore, RCEP and CPTPP will also be put into negotiation.

The Thai Rubber Association is of the view that enhancement of competitive advantage is highly important in maintaining Thailand’s position as the largest rubber exporter and an important production base of rubber-finished products. It plays a big part in the further growth of Thai rubber industry.
Monthly of   August  2019     


    iconAll Activities  
The Meeting of the Occupational Standards and Professional Qualification Standards, and its Evaluation Tools on Rubber-Based Products (Tyre Rubber Industry)
icon 23  September  2019
The science faculty of Kasetsart University held the meeting of the occupational standards and professional qualification standards, and its evaluation tools on rubber-based products (tyre rubber industry)  on Monday, September 23, 2019, at Kasetsart University, Bangkok, Thailand. In this rega..
Progress Meeting of Flagship Project
icon 19  September  2019
Progress Meeting of Flagship Project was held on 18-19 September 2019 at Kasetsart University, Bangkok and Sri Trang Agro-Industry Public Company Limited, Ubon Ratchathani. In this regard, Ms. Piyaporn Saelim, TRA Manager attended the meeting...
8th TRA Executive Committee Meeting 2019
icon 13  September  2019
The Thai Rubber Association scheduled for the 8th TRA Executive Committee Meeting 2019 and a meeting with  Tokyo Commodity Exchange (TOCOM) on Friday, September 13, 2019 from 11.00-13.00 hrs at Agehan Restaurant, 2nd Floor, Grand Hotel Mercure Fortune Bangkok...
IMT-GT Business Forum 2019
icon 10  September  2019
The IMT-GT Business Council JBC Thailand hosted the IMT-GT Business Forum 2019 on Tuesday 10 September 2019 at Krabi, Thailand. The topic of the discussion is "Developments and Opportunities for the Rubber industry". In this regards, Mr. Supadetch Ongsakul, TRA Deputy Secretary General as a represen..
The 29th Meeting of the ACCSQ Rubber-Based Product Working Group (RBPWG) and Its Related Meetings
icon 4  September  2019
The 29th Meeting of the ACCSQ Rubber-Based Product Working Group (RBPWG) and Its Related Meetings was held on 4-6 September 2019 at Bliston Suwan Park View Hotel, Bangkok, Thailand. In this regards, Ms. Piyaporn Saelim, TRA Manager and Ms. Suthida Chitwang, TRA Officer attended the meeting...
Progress Meeting of Flagship Project
icon 19  September  2019
8th TRA Executive Committee Meeting 2019
icon 13  September  2019
IMT-GT Business Forum 2019
icon 10  September  2019
The 29th Meeting of the ACCSQ Rubber-Based Product Working Group (RBPWG) and Its Related Meetings
icon 4  September  2019


    All News
US tariffs spur China interest in Thai manufacturing sites  new 23  September  2019
Supermax allocates RM1.13b to double capacity by mid-2024  new 20  September  2019
Yokohama ‘bidding for’ ex-Pirelli unit Prometeon  new 20  September  2019
Tire Cologne on track for 2020  new 20  September  2019
Tire shares tracker: Recovery mode  new 18  September  2019
Prometeon launches new tire line  new 18  September  2019
A lost year for markets as all 2019 gains erased  new 18  September  2019
Thai, Cambodian SEC sign pact on capital markets  new 18  September  2019
James Heal venturing into rubber sector   16  September  2019
Oil surges, stock futures slip after attack on Saudi facility   16  September  2019



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