Fortnightly rubber situation in Thailand – July 2013

1-15 August 2013

Rubber prices continued declining from July to the beginning of August. RSS3 price settled at 68 Baht/kg. No recovery was noticed in Chinese, European and U.S. economy, especially Europe struggling with financial problems. Chinese tire exports to European and U.S. markets are likely to decrease. China defers 50% of tire output. During the 2nd week of August, market price climbed up considerably from 68 Baht/kg to 72 Baht/kg, supported investors’ confidence in short-term speculation.

16-31 August 2013

In response to falling rubber price situation, rubber tappers complained to the government for solutions. No problems had been solved for 5 months. Tappers rallied on August 5, 2013, closing Asia Highway at Khuan Nong Hong Intersection as well as railway in Cha-uat, Nakornsrithammarat, wreaking havoc to people using the route. Tapper group leader met Mr. Yukol Limlamthong, Deputy Prime Minister cum Minister of Agriculture and Cooperatives together with Mr. Sukorn Atthavong, Deputy Secretary General at the House of Government for proposing measures against falling prices as follows:

1. Government to intervene USS price at 92 baht/kg
2. Government to intervene farm latex price at 81 baht0kg
3. Government to intervene cup lump price at 83 baht/kg
4. Government to intervene RSS3 price at 101 baht/kg
5. Government to reduce or cancel Cess levy

Conditionally, if the government fails to entertain the requests, the rally group insisted that tey would close highways throughout the country on September 3, 2013.