Thailand monthly rubber report - February 2018

       February average RSS3 price announced by Central Rubber Market in Songkhla stood at 47.36 Baht/kg, down 0.61 % from January due to the following factors. The overall price of rubber increased due to purchasing demand from traders in the country. This was in line with price movement in foreign futures markets.  It was also supported by low output in the market due to wintering season resulting in low tapping ability, coupled with Thai Government’s implementation of export quota scheme. During early March, oil price improved due to news of a production halt at Libya's 70,000 barrel-a-day El-Feel field, coupled with depreciating dollar. However, oil price dropped sharply during mid-March following Iran’s plan to increase oil production capacity, coupled with large output in the U.S., while Saudi Arabia planned to reduce capacity. In addition, investors were concerned about rising rubber inventories in China and Japan. Despite aforementioned negative factors, investors braced for an event-packed week headlined by US inflation data and the first House testimony by the new head of the Federal Reserve. China’s January Producer Price Index for manufactured goods increased 4.3 % yoy and 0.3 % mom; the purchasing price index for manufactured goods increased 5.2 % yoy and 0.5 % mom.

       In January, Thailand exported 323,669 tons of natural rubber (including compound rubber), down 15.38 % from December 2017, up 3.52 % yoy, generating export income of US$ 439.65 million, down 18.21 % from January and 19.69 % yoy.

       In tyre sector, in January Thailand exported 10.72 million units of all tyres, up 17.11 % yoy, with the export value of US$ 386.16 million, up 29.58 % yoy.