January average RSS3 price announced by Central Rubber Market in Songkhla stood at 86.19 Baht/kg, 16.05 % up from December due to the following factors. Tight supply of rubber was caused by heavy rain in Malaysia, Indonesia and especially southern Thailand, where plantations were considerably affected by floods, and they take time to recover. Local entrepreneurs lacked raw material for processing and delivery, resulting in procurement competition. Chinese importers accelerated the purchase prior to long Chinese New year holidays, coupled with a slump in China’s inventory to 306,641 tons as of 20 January from 308,451 tons as of 13 January. TOCOM price climbed up constantly after bullish global economic figures attracted investors to buy more rubber contracts. China’s manufacturing activity grew in December at its strongest pace in nearly 4 years. U.S. factory activity accelerated to a 2-year high in December. Eurozone factory activity expanded the most since April 2011; the final factory PMI rose to 54.9 in December from 53.7 in December. Eurozone inflation spikes to annual rate of 1.1 percent in December, the highest in more than 3 years. The People’s Bank of China injected a net 410 billion yuan ($60 billion) through open-market operations on 18 January, the biggest daily addition since 2004.
In December 2016, Thailand exported 344,229 tons of natural rubber (including compound rubber), 6.64 % up from November and 3.22 % up yoy, generating export income of US$ 536.50 million, 17.17 % up from November, and 36.10 % up yoy. Overall, in 2016 Thai NR exports (including compound rubber) reached 3,806,324 tons, 6.97 % down yoy. The total export value touched US$ 4.76 billion, 17.30 % down yoy.
In tyre sector, in December Thailand exported 10.20 million units of all tyres, 13.41 % up yoy, with the export value of US$ 310.55 million, 13.12 % up yoy. Overall, in 2016 Thai exports of all tyres reached 113.30 million units, 6.62 % up yoy, generating export income of US$ 3.58 billion, 3.59 % up yoy.
![[Current Year]](/en/index.php/detail_member/uploadfile/thb/020250619134955.jpg?detail=situation&yearPlus=Nothing){kind=link}