June average RSS3 price announced by Central Rubber Market in Songkhla stood at 58.54 Baht/kg, up 8.67 % from May due to the following factors. Rubber output was still tight, coupled with an increase in rainfall across Thailand, especially the southern region. Thailand’s domestic consumption was likely to increase due to the relocation of Chinese rubber production base to Thailand. Japanese economy grew an annualized 2.2% in January-March, stronger than economists’ forecast for 2.1% annualized growth. This could result in higher consumption of rubber, especially RSS from Thailand. For the U.S., jobs figures for May could serve as a reminder that the U.S. economy was still mostly in good shape, coupled with low interest rate that stimulated domestic consumption. Moreover, oil price improved as oil reserve in the U.S. decreased, and oil producing nations curbed production. This is another positive factor supporting rubber price. However, Thai rubber price was affected by the strengthening baht which precluded competitive advantage of Thai rubber exporters. 

       In May, Thailand exported 353,690 tons of rubber, up 4.01 % from April, down 17.96 % yoy, generating export income of US$ 509.64 million, up 8.02 % from April, down 18.94 % yoy. Overall, during the first 5 months of 2019, Thai rubber exports reached 1,992,756 tons, down 7.28 % yoy. The YTD export value touched US$ 2.63 billion, down 14.11 % yoy.     

       In tyre sector, in May Thailand exported 11.66 million units of all tyres, up 4.08 % yoy, with the export value of US$ 496.86 million, up 16.47 % yoy. Overall, during January to May Thai exports of all tyres reached 54.24 million units, up 1.11 % yoy, generating export revenue of US$ 2.22 billion, up 14.29 % yoy.