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   PRESIDENT VIEW
   Natural Rubber Situation in 2022
Natural Rubber output has decreased due to heavy rains in many areas and flooding in some areas. Even though the container shortage issue starts to improve as well as the freight rate, there are other risk factors such as Pestalotiopsis leaf fall disease and the prolonged Russia-Ukraine war. These factors affect energy and commodity prices and the volatility of the global financial markets. Furthermore, trade partners' economies slowed down. Inflation and production costs rise, particularly in Asia and Thailand, due to rising raw material prices and imported product prices following rising transportation costs. The increased inflation rate in many countries affects consumers’ purchasing power; as a result, significant trading partners slow down their imports. Besides, foreign demand declines. In addition, foreign tire purchasers slow down their order receiving of rubber-based products. In 2022, rubber export value is expected to increase by 5%; meanwhile, rubber volume is stable.

Other risk factors that need to be monitored are as follows: 1. The first factor is the EU Carbon Border Adjustment Mechanism (CBAM). The Thai Rubber Association (TRA) considers that rubber planting is one of the ways to help reduce global warming. Importantly, rubber is also a major source of carbon dioxide absorption or storage in the world, close to tropical forests. According to the Rubber Authority of Thailand (RAOT), rubber trees can store 4.22 tons of carbon dioxide per rai, thereby reducing carbon in the air, which is an important greenhouse gas. Therefore, natural rubber is a green product. 2. The second factor is the EU Deforestation-Free Products. In July 2022, the relevant parties have proposed to consider expanding the scope of products to include pigs, sheep, goats, poultry, maize, rubber, charcoal, and printed paper products. As a result, the smallholders will be affected by the high expenses. In addition, the due diligence process with 2 million smallholders in Thailand can be extremely time-consuming and difficult to implement because there must be mechanisms, tools, and technology, and abundant funding from the government is required. Moreover, Thailand is confronted with economic problems due to COVID-19 and geopolitical issues. If the EU Parliament includes rubber products within the law, it will severely affect Thailand's smallholders, causing them to be unable to sell rubber. Besides, it might cause trade barrier issues, which affect low rubber prices as a whole.

However, the Thai Rubber Association (TRA) considers that natural rubber still has positive economic fundamentals, especially with the increase in demand for rubber gloves globally due to the COVID-19 outbreak. The demand for EV cars increases as well. Moreover, Thailand, Indonesia, and Malaysia strong cooperated under the International Tripartite Rubber Council (ITRC) to roll out significant measures to handle various situations. In addition, Thai government has rolled out measures to help smallholders and entrepreneurs as well.

Mr.Chaiyos Sincharoenkul
President
The Thai Rubber Association

Monthly of   December  2022     

   Activities

    iconAll Activities  
A discussion meeting on the Carbon Adjustment Measures (CBAM) and the law on deforestation-free goods (Deforestation-free products) of the EU
icon 1  February  2023
The Department of Trade Negotiations held a discussion meeting to consider the implementation guidelines to prepare for the Carbon Adjustment Measures (CBAM) and the law on deforestation-free goods (Deforestation-free products) of the EU on February 1, 2023, via Zoom Meeting. In this regard, Mr. Su..
The 1st TRA Executive Committee Meeting 2023
icon 27  January  2023
The Thai Rubber Association held the 1st TRA Executive Committee Meeting 2023 (Online Meeting) at 9.30 a.m.- 10.30 a.m. on 27 January 2022, at TRA Meeting Room, the Thai Rubber Association, Hatyai, Songkhla...
icon 22  December  2022
The Thai Rubber Association held the 11th TRA Executive Committee Meeting 2022 (Online Meeting) at 9.30 a.m.- 10.30 a.m. on 22 December 2022, at TRA Meeting Room, the Thai Rubber Association, Hatyai, Songkhla...
The 4th International Conference on Materials Research and Innovation (ICMARI)
icon 16  December  2022
The Specialized center of Rubber and Polymer Materials in agriculture and industry (RPM), Department of Materials Science, Faculty of Science, Kasetsart University held the 4th International Conference on Materials Research and Innovation (ICMARI) on 15-16 December 2022, at the Emerald Hotel, Bangk..
Thank You Party
icon 14  December  2022
The Bank of Thailand (BOT) held Thank You Party "80 Years BOT Continuing Cooperation to Take Care of the Southern Economy and Finances" on December 14, 2022, from 5.00 - 8.00 p.m., at Grand Convention Hall A, 8th floor, Lee Gardens Plaza, Hat Yai, Songkhla.  In this regard, Ms. Piyaporn SaeLim..
The 1st TRA Executive Committee Meeting 2023
icon 27  January  2023

icon 22  December  2022
The 4th International Conference on Materials Research and Innovation (ICMARI)
icon 16  December  2022
Thank You Party
icon 14  December  2022

   News

    All News
The world’s in a ‘polycrisis’ — and these countries want to quash it by looking beyond GDP   26  December  2022
India Rubber: Kerala rubber prices steady on low supply, weak demand   23  December  2022
Japanese rubber futures climb on Shanghai gains   22  December  2022
Oil prices rose as much as 2% on hopes of China’s reopening and as OPEC+ maintains output cut targets   16  December  2022
Southeast Asian markets are in for a ‘bungee jump’ in 2023, says JPMorgan   14  December  2022
Thai rate hikes to be gradual and measured - c.bank minutes   14  December  2022
EU sanctions, Russian oil price cap cause tanker bottleneck as crude moves through Turkey   8  December  2022
U.S. manufacturing orders from China down 40% in unrelenting demand collapse   6  December  2022
U.S. manufacturing sector contracts in November - ISM   1  December  2022
UK economy is lagging substantially behind other developed nations, OECD report says   22  November  2022
   

 

 

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