Monthly Rubber Situation in Thailand - July 2014

Rubber price situation has continued its decline since early this year. We did not see any significant improvement due to absence of positive factors from demand side and lack of incentives for investors in futures market. Investors resorted to gold and oil for better return. However, global NR consumption is expected to track the increase of world population. Overall, we still believe that futures of rubber is bright enough.

Drawback faced in Thai rubber industry is that relevant government policies change when minister in charge is changed; operation and implementation of those policies stagnate and fail. In contrast, Malaysian minister in charge of rubber stably continues his post for many years. Therefore, National Council for Peace and Order (NCPO) or forthcoming government is to direct and implement rubber industry development in vivid, stable and continual manner both in production and marketing at downstream, midstream and upstream level. This matter shall be contained in the prospective integrated rubber development scheme.