June average RSS3 price announced by Central Rubber Market in Songkhla stood at 47.79 Baht/kg, down 8.1 % from May due to the following factors. The drop in Shanghai futures prompted selling as crude oil prices drifted lower and trade war between Beijing and Washington intensified. Crude oil prices decreased from end last month due to ample stock and increased production in the U.S.; however, oil prices recovered late this month after Saudi Arabia agreed with Russia and Iran to increase output by only less than 1 million barrels a day at OPEC meeting in Vienna. Investors were concerned over trade tension as the US threatened to impose tariffs on several countries on auto, steel and aluminum imports, which may result in slower global economic growth. Also, political turmoil in Italy and Spain threatened Eurozone stability. Thanks to certain supporting factors which prevented rubber prices against further slump. Thai baht depreciated as many countries announced increasing policy interest rate to stabilize finance and production sector. Rains in rubber plantation areas tightened the output. However, there were worries about lower demand for tire due to US President Donald Trump's threat to impose tariffs on auto imports, coupled with ample supplies and inventories in Asia, especially high stockpiles in Japan and China.
In May, Thailand exported 301,715 tons of natural rubber (including compound rubber), down 13.30 % from April, up 8.81 % YoY, generating export income of US$ 433.77 million, down 14.58 % from April and 15.50 % YoY. Overall, during the first 5 months, Thai NR exports (including compound rubber) reached 1,582,167 tons, up 2.37 % YoY. The YTD export value touched US$ 2.22 billion, down 25.31 % YoY.
In tire sector, in May Thailand exported 11.21 million units of all tires, up 3.08 % YoY, with the export value of US$ 426.60 million, up 10.85 % YoY. Overall, from January to May Thai exports of all tires reached 53.65 million units, up 8.74 % YoY, generating export revenue of US$ 1.94 billion, up 14.87 % YoY.
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