November average RSS3 price announced by Central Rubber Market in Songkhla stood at 40.30 Baht/kg, down 4.89% from October due to the following factors. Crude oil price fell sharply due to the increase in oil output in producing countries and US crude oil inventories and especially after Iran was allowed to continue exporting oil despite US sanction. Most commodities fell on a stronger USD. Rubber prices were dampened by supply worries and concern over slowing Chinese economy. Global light vehicle sales fell 3.8% yoy in October, according to LMC Automotive. This resulted in the decrease of rubber consumption in tyre manufacture sector. A deepening trade dispute between the US and China obstructed the international trade. The apparent slowdown of global industrial sector resulted in less NR consumption demand. Due to economic uncertainty, investment sector also saw a slowdown as investors were reluctant to invest. However, there are certain positive factors that supported rubber prices against further slump. The US economy continued its strong growth. Thai Baht is likely to weaken against the US dollar. Major rubber plantations in southern Thailand are now experiencing the rainy season, resulting in lower output. Shanghai rubber inventories dropped drastically more than 200,000 tons on clearing expired stocks.
In October, Thailand exported 321,881 tons of natural rubber (including compound rubber), up 13.83% from September, down 1.09% yoy, generating export income of US$ 406.21 million, up 12.43% from September, down 18.88% yoy. Overall, during the first 10 months, Thai NR exports (including compound rubber) reached 3,087,138 tons, up 1.03% yoy. The YTD export value touched US$ 4.20 billion, down 20.71% yoy.
In tyre sector, in October Thailand exported 11.32 million units of all tyres, up 11.75% yoy, with the export value of US$ 443.91 million, up 17.98% yoy. Overall, during the first 10 months, Thai exports of all tyres reached 108.99 million units, up 5.60% yoy, generating export revenue of US$ 4.07 billion, up 12.51% yoy.
