September average RSS3 price announced by Central Rubber Market in Songkhla stood at 42.42 Baht/kg, down 4.99 % from August due to the following factors. Rubber stocks in China remain high. Trade war between the United States And China has created a concern for investors. There is an analysis that the Chinese economy will be affected, beit employment or sentiment. Consumer confidence declines due to inflation and currency problems in many emerging economies, resulting in an increase of cost of production. Consequently, the overall global economy has slowed down. However, certain positive factors supported rubber prices against further decline. EU and US economy continued to grow stronger. Especially, the United States' manufacturing sector has grown steadily. Rubber volume is tight in Thailand after rainfall in rubber plantations. The baht is likely to weaken, compared to the US dollar. Global oil prices are likely to rise as OPEC restricts oil production, ignoring US' request for the increase of production capacity.
In August, Thailand exported 310,771 tons of natural rubber (including compound rubber), up 2.45 % from July, down 4.87 % yoy, generating export income of US$ 401.61 million, down 1.52 % from July and 17.78 % yoy. Overall, during the first 8 months, Thai NR exports (including compound rubber) reached 2,482,480 tons, up 2.63 % yoy. The YTD export value touched US$ 3.43 billion, down 20.62 % yoy.
In tyre sector, in July Thailand exported 11.33 million units of all tyres, up 3.16 % yoy, with the export value of US$ 431.62 million, up 13.30 % yoy. Overall, during the first 8 months of 2018, Thai exports of all tyres reached 86.96 million units, up 5.64 % yoy, generating export revenue of US$ 3.21 billion, up 12.37 % yoy.
