Latex Gloves Exports Surge In November, Thailand's Natural Rubber Prices May Exceed 70 Baht

- Oct 27, 2020-

On October 26, 2020, the Thai Ministry of Commerce announced that the export of latex gloves in Thailand in September 2020 increased by 154.9%, and the export of latex gloves from January to September this year increased by 61.4%. The new crown pneumonia epidemic is the main factor driving the increase in latex gloves exports; the current global epidemic situation has not completely improved, and the demand for latex gloves will continue to increase. It is understood that Thailand's orders for latex gloves are scheduled to 2021. Thailand's latex glove exports increased sharply and pushed up the price of rubber. It is expected that natural rubber will exceed 70 baht/kg in November.

Last Wednesday, the relevant person in charge of the Thai Rubber Bureau said: The price of rubber is expected to rise to 67 baht per kilogram soon due to increased demand in China, while rubber supply is declining due to frequent rains in the south and labor shortages during the epidemic. As of October 21, the price of RSS3 grade smoked sheet glue in Surat Thani and Nakhon Si Thammarat market is 65 baht/kg, and the price after the increase is close to the guarantee set by the government. Price standards, this number will continue to rise.

The southern region of Thailand suffered from frequent rains and labor shortages during the epidemic, which will inevitably lead to a decline in rubber production and an increase in prices. The growth in Chinese rubber demand will boost Thailand's rubber exports. The Thai government’s current policy of providing loans to rubber growers helps them hire more workers and increase harvesting capacity and rubber production. The project was implemented in May this year and will end in April 2022 with a budget of 20 billion baht. These loans should ultimately help stabilize rubber market prices.

Thailand exported 201,73 million tons of rubber in September 2020, a decrease of 8.2% from the same period last year, and its value was US$250 million, a decrease of 12.2%. In the first nine months, a total of approximately 1.895328 million tons of rubber was exported, valued at US$2.368 billion. The export market of latex gloves continued to improve, making domestic rubber prices rise. The rubber price data released by the Thai Rubber Administration on October 22 showed that No. 3 smoked film was 64.97 baht/kg and fresh glue was 61 baht/kg.

The Rubber Authority of Thailand pointed out that October-November is a high-yield period of rubber, and the proportion of rubber produced accounts for 10%. However, this year due to the shortage of rubber tapping workers due to the new crown pneumonia epidemic, and the rainfall in the southern region is higher than previous years, making the market The amount of glue has decreased, and the demand for rubber has begun to increase, including for the production of latex gloves and the auto industry that is beginning to recover. Based on the analysis of the overall situation, it is estimated that rubber prices will continue to rise because China’s economic growth has reached 4.9% and the use of rubber has increased.

The production of natural rubber in countries surrounding Thailand has declined due to natural disasters and heavy rainfall in October; demand for latex gloves continues to increase, and the price of rubber in Thailand may continue to rise. It is expected to exceed 70 baht/kg next month.