Decreased Production And Increased Demand, Natural Rubber Prices May Continue To Rise In 2021

- Dec 11, 2020-

A few days ago, continuous heavy rainfall occurred in the Gulf of Thailand and southern areas affected by the northeast monsoon and low-pressure air currents, which affected the rubber tapping work. The chairman of a Thai rubber group said: due to the impact of heavy rainfall caused by the El Niño phenomenon, Thailand's rubber production will decline until April next year.

He believes: "At the same time, as the tire industry accumulates this product to cope with the shortage, the demand for rubber is increasing, so we expect rubber prices to rise until the second quarter of next year." He added that Malaysian research shows that, The Thai and Vietnamese rubber industries will benefit from the high consumption of natural latex gloves, which are more prone to degradation than synthetic rubber gloves.

In 2020, the new crown pneumonia epidemic sweeps the world, stimulating the consumption of medical rubber gloves, and has an irreversible impact on the demand structure of natural rubber. According to industry estimates, from 2020 to 2021, the total value of the global latex glove market will increase by 16.0% and 14.9% respectively; from 2020 to 2027, the total value of the global latex glove market will grow at an average annual rate of 12.6%, which will continue to drive concentrated latex demand.

Korakod Kittipol, marketing manager of Thai Hua Rubber Plc, said that due to heavy rain and leaf disease in the south, the price of rubber has risen, leading to a decline in productivity. He said: "Due to the above situation, we expect rubber prices to fluctuate between 60 and 80 baht per kilogram."