July average RSS3 price announced by Central Rubber Market in Songkhla stood at 50.34 Baht/kg, down 14.01 % from June due to the following factors. Higher rubber output built up in the market due to the decrease of rainfall in rubber plantations especially the south of Thailand, resulting in higher concern of investors about oversupply. This is coupled with mounting rubber stock in China in contrast to slowing demand of rubber. One of the evidences is the drop in vehicle sales in China as a result of the US-China trade war which affects Chinese economy as a whole amid global slow growth. Consequently, rubber demand in other regions is also sluggish. Moreover, there was a slight drop in crude oil price due to oversupply as a result of production at full capacity of oil producing nations. Furthermore, Thai baht continued appreciating against US dollar, resulting in lower competitiveness of Thai exporters as compared to Malaysia and Indonesia. However, a positive news that could support rubber price is that automobile and autopart production of the US increased 2.9% in June, nearing the peak of this year.
In June, Thailand exported 326,210 tons of rubber, down 7.77 % from May and 19.27 % yoy, generating export income of US$ 488.90 million, down 4.07 % from May and 16.28 % yoy. Overall, during the first half of 2019, Thai rubber exports reached 2,318,967 tons, down 9.18 % yoy. The YTD export value touched US$ 3.12 billion, down 14.46 % yoy.
In tyre sector, in June Thailand exported 11.52 million units of all tyres, up 4.33 % yoy, with the export value of US$ 491.29 million, up 17.90 % yoy. Overall, during the first half of 2019, Thai exports of all tyres reached 65.76 million units, up 1.66 % yoy, generating export revenue of US$ 2.71 billion, up 14.93 % yoy.
