In June, Thailand rubber prices slightly changed in line with the international futures market. June average RSS3 price announced by Central Rubber Market in Songkhla stood at 42.93 Baht/kg, up 7.65% from the previous month due to the following factors.

In June, rubber supply increased because the tapping season started. Meanwhile, rubber gloves demand increased because of the impact of the Covid-19, which makes manufacturing companies received the orders until mid-2020. The production capacity of rubber gloves is about 33,000 million pieces per year. The same as rubber gloves, condoms also took effect of the Covid-19, resulting in a shortage of around 100 million pieces worldwide. Meanwhile, the Ministry of Agriculture and Cooperatives had rolled out the scheme to promote rubber usage by the government sector following the government policy. On June 15, 2020, with the honored of General Prayut Chan-o-cha as the president, at Santi Maitree Building, Government Building, Mr. Chalermchai Sreeon, the Minister of Agriculture and Cooperatives had sign the Memorandum of Understanding on Traffic Equipment and Road Safety Produced from Rubber which will be used by government agencies, including the Ministry of Transport and the Ministry of Agriculture and Cooperatives. The Ministry of Agriculture and Cooperatives will buy the rubber from the farmers through agricultural cooperatives and use both Rubber Fender Barrier (RFB) and Rubber Guide Post (RGP) to modify and increase the efficiency of the Road Safety. The project will process about 5 years from 12 June 2020 to 11 June 2024 and it will support a career and income security for members of agriculture cooperatives and rubber farmers.

The cabinet of Thailand had approved giving compensation to around 1.37 billion farmers who never receive compensation from the government. There are around 67,000 rubber farmers who had reported their rubber plantation information to the Rubber Authority of Thailand (RAOT). Each farmer will receive 15,000 baht. Furthermore, the Rubber Authority of Thailand (RAOT) has released the rain guard for rubber trees which has been used with more than 30 rai (4.8 hectares) of rubber plantations at the Nawat Agriculture Learning Center, Rayong, to increase rubber yields, rubber farmer income, and domestic rubber consumption. 

Thailand’s economy in 2020 is expected to shrink in line with the world economic outlook. Thailand’s inflation rate tends to be negative, which will directly affect tourism and exports. Furthermore, the consumption, the private sector investment, and related employments are also affected by the economy. Thai government had lessened the lockdown measures because the Covid-19 pandemic situation in Thailand recovers, resulting in the household sector and the private sector starts back to work. However, they lack of financial liquidity. The Thai Rubber Association suggested that it should be a demand policy that will support the economic structural change and business structure change; moreover, it should be the management that supports the New Normal and also support the economic growth in the future. For the result of the Monetary Policy Committee meeting on June 24, 2020, the committee has agreed to stand the interest rate as 0.50% per year. In terms of Thailand’s international trade in May 2020, Thailand’s export income value 524,584.12 million baht, down 20.91% yoy, and down 14.56% compared with April 2020. From January to May 2020, Thailand’s export income value 3,041,719.91 million baht, down 5.18% yoy (Ministry of Commerce, 2020).         

The Institute for Supply Management (ISM) informed that the manufacturing sector’s Purchasing Managers’ Index (PMI) of the US up to 49.8 in June from 39.8 in May. Meanwhile, Thailand’s PMI up to 43.5 in June from 41.6 in May.

West Texas Intermediate (WTI) crude oil and Brent crude oil prices are still volatile. On June 30, 2020, West Texas Intermediate (WTI) crude oil and Brent crude oil price stood at 39.27 and 41.15 USD/barrel, respectively. The markets are still concerned about the COVID-19 pandemic after the infected number is continually increasing, especially in America, which will affect oil demand. 

The U.S. Energy Information Administration (EIA) has announced the crude oil inventories increased more than 1.4 million barrels as 540 million barrels for the week ending June 19, hitting the highest level in the history of Gulf Coast crude oil inventories.

In May 2020, Thailand exported 334,505.94 tons of natural rubber (including compound rubber), down 4.92% from the previous month and down 5.42% yoy, generating export income of 13.6 billion baht, down 9.56% from the previous month, down 15.15% yoy.

In the tyre sector, in May 2020, Thailand exported 7.34 million units of all tyres, down 37.03 % yoy, with an export value of 8.76 billion baht, down 44.18% YoY. The amount of Thailand's car production in May 2020 is 56,035 units, down 69.1% yoy. The car production for exports and domestic sales decreased by 61.93% and 76.89%, respectively. However, the amount of Thailand's car production in May 2020 increase 126.76% comparing with the previous month because Most automotive entrepreneurs resumed their operations; moreover, the automotive factories are back to open their car production line. For the first 5 months of 2020, Thai produced 534,428 of cars, down 40.16%yoy.