In July, Thailand rubber prices slightly changed in line with the foreign futures markets. July average RSS3 price announced by Central Rubber Market in Songkhla stood at 43.90 Baht/kg, up 2.25% from the previous month due to the following factors.

In July, volume and rubber prices slightly increase. Because of the Covid-19 pandemic spreading around the world, many countries have concerned prevention measures to reduce pandemic risks, resulting in the increase of rubber gloves demand, especially medical rubber gloves. Thailand is the world's second largest producer and exporter of medical rubber gloves following Malaysia. Recently, Thailand’s rubber gloves are greatly demanded around the world causing an impact on the production capacity and exports which cannot meet the world’s market demand. Moreover, there are international trade barriers. The Thai Rubber Association and the Rubber Authority of Thailand concern about the issues, which might affect image and reputation as well as foreign investor confidence.

Thailand’s economy in 2020 is expected to recover following the loosening Covid-19 prevention measures as well as the world’s economic recovery. The export sector starts to recover at the low level. Meanwhile, the tourism sector also starts to recover because COVID-19 restrictions are loosened. Furthermore, the Thai government has rolled out several measures to support domestic touring. However, foreign tourists still need to follow closely on loosening measures as well as the country's reopening situation, which will take time.  In terms of Thailand’s inflation rate, it tends to slightly up yet it is at a low level. Moreover, it is expected to be negative this year. In terms of the result of the Monetary Policy Committee (MPC) meeting on August 5, 2020, the Committee voted unanimously to maintain the policy rate at 0.50 percent, affected immediately. However, the Ministry of Finance estimates that Thailand’s economy could expand 4.0%-5.0% in 2021. Furthermore, the Ministry of Finance will continue to monitor the situation closely to prepare to proceed with the further appropriate measures so they could handle Thailand's economic challenges immediately.

In terms of Thailand’s international trade in June 2020, Thailand’s export income value 520,608.01 million baht, down 23.06% yoy, and down 0.76% compared with May 2020. From January to June 2020, Thailand’s export income value 3,562,327.92 million baht, down 8.29% 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 50.9 in July from 49.8 in June. Meanwhile, Thailand’s PMI up to 45.9 in July from 43.5 in June.

West Texas Intermediate (WTI) crude oil and Brent crude oil prices increase. On July 31, 2020, West Texas Intermediate (WTI) crude oil and Brent crude oil prices stood at 40.27 and 43.30 USD/barrel, respectively after the support from the USD depreciation, which fell more than 4% in July comparing with the previous month. 

The U.S. Energy Information Administration (EIA) has announced the crude oil inventories of the U.S. decreased more than 10.6 million barrels as 526 million barrels for the week ending July 24, 2020.  The production cut agreement of OPEC+ continues, so the crude oil inventories of the U.S. and other countries around the world decrease.

In June 2020, Thailand exported 338,652.99 tons of natural rubber (including compound rubber), up 1.24% from the previous month and up 3.81% yoy, generating export income of 13.4 billion baht, down 1.94% from the previous month, down 13.37% yoy.

In the tyre sector, in June 2020, Thailand exported 10.56 million units of all tyres, down 8.41% yoy, with an export value of 12.2 billion baht, down 21.51% YoY. The amount of Thailand's car production in June 2020 is 71,704 units, down 58.52% yoy. The car production for exports and domestic sales decreased by 49.19% and 67.39%, respectively. However, the amount of Thailand's car production in June 2020 increased 27.96% comparing with the previous month because most of the automotive entrepreneurs resumed their operations; moreover, the automotive factories are back to open their car production line. For the first half of 2020, Thai produced 606,132 of cars, down 43.14%yoy.