February average RSS3 price announced by Central Rubber Market in Songkhla stood at 46.28 Baht/kg, up 1.03% from January due to the following factors. Thai rubber plantation areas have witnessed wintering season. This results in tighter rubber output, prompting exporters to procure a great quantity of raw materials for today and tomorrow’s exports. Chinese entrepreneurs began resuming business operations after a long Chinese New year vacation. On crude oil front, the oil price has improved since the beginning of the year due to the production cut led by Saudi Arabia. In China, the biggest rubber consumer, that People’s Bank of China has recently signaled a more accommodative stance alongside optimism about U.S.-China trade negotiations resulted in the more ease of business operation. In addition, U.S. consumer confidence rose to 131.4 in February from 121.7 in January. Indonesia, Malaysia and Thailand under ITRC planned a collective export cut of 300,000 tons and higher domestic consumption. However, that U.S. economy slowed down caused the dollar to depreciate. Thai currency continued its appreciation, higher than those of other rubber producers such as Indonesia and Malaysia. On vehicle front, LMC reported global light vehicle sales of 7.28 million units, down 8.2 % yoy, with China down 16% in particular.
In January, Thailand exported 302,592 tons of natural rubber (including compound rubber), up 2.09% from December 2018, down 6.51% yoy, generating export income of US$ 366.08 million, up 2.62% from December 2018, down 16.73% yoy.
In tyre sector, in January Thailand exported 10.40 million units of all tyres, down 3.08% yoy, with the export value of US$ 410.58 million, up 6.32% yoy.
