Thailand monthly rubber report - March 2019

       March average RSS3 price announced by Central Rubber Market in Songkhla stood at 52.51 Baht/kg, up 13.46 % from February due to the following factors. Major rubber plantation areas in Thailand is currently experiencing wintering season, resulting in very tight output and higher demand from Thai exporters, some of whom had insufficient stocks for March-to-May exports. With OPEC and non-OPEC members likely to curb production until the end of 2019 coupled with lower U.S. oil reserve, world oil output appears tighter. Thai baht tends to weaken further, conducive for exports. However, PMI and GDP of major economies show a sign of the slowdown. In China, the biggest rubber consumer, China's exports tumbled the most in 3 years in February, falling 20.7 per cent from a year earlier.

        In February, Thailand exported 302,215 tons of natural rubber (including compound rubber), down 0.12 % from January and 8.07 % yoy, generating export income of US$ 373.25 million, up 1.96 % from January, down 17.65 % yoy. Overall, during the first 2 months, Thai NR exports (including compound rubber) reached 604,807 tons, down 7.29 % yoy. The YTD export value touched US$ 739.33 million, down 17.2 % yoy.    

       In tyre sector, in February Thailand exported 10.30 million units of all tyres, down 3.70 % yoy, with the export value of US$ 416.76 million, up 12.84 % yoy. Overall,  in January to February Thai exports of all tyres reached 20.70 million units, generating export revenue of US$ 827.34 million, up 9.51 % yoy.