According to foreign media, on April 22, 2020, the Acting Director of the Rubber Authority of Thailand, Kazun Chak, revealed that after Malaysia's reopening of the border ports of Sadao and Padang Besar in early April, train transportation has been restored. Recently, Malaysia has fully restored border ports. The customs clearance of goods has started the rubber industry, and it is estimated that the entire rubber price can gradually return to normal. And said: With the surge in global demand, especially rubber gloves and synthetic rubber, the export prospects of Thailand's rubber products continue to improve.
According to data from the Thai Ministry of Commerce, in the first two months of 2020, Thailand's exports of rubber products and processed rubber products such as automobile tires, rubber gloves and rubber belts increased by 10%. Malaysia recently opened its borders to import rubber and China resumed its manufacturing industry, actively promoting the resumption of production and export of the Thai rubber industry and related products.
Kazongcha said that Malaysia announced in early April that it would restart the Sadao port and Padang Besar port on the Thai-Malaysian border, allowing the restoration of Thai-Malaysian train transportation. The two ports will be open from 8 am to 4 pm every day. This situation will promote the export of Thai rubber to Malaysia. At the same time, China will allow some industries to resume work after the new crown pneumonia epidemic improves. This is a trend of improvement in the Thai rubber industry. In addition, as the global industries affected by the new crown pneumonia epidemic recover, the amount of rubber will increase significantly.
Affected by the new crown pneumonia epidemic, there is a lot of uncertainty in rubber prices in the later stage. In order to increase the use of domestic rubber, the Thai government recently invested 500 million baht in cooperation with the Rubber Administration to build a rubber glove factory and build a global rubber center in the 20,000 rai rubber plantation in Nakhon Si Thammarat. As the United States, India, and the Eurozone are still unable to effectively control the epidemic, the global economy has been severely affected. However, Malaysia's opening of its border port market will promote Thailand's rubber exports.
Kazongcha believes that the amount of rubber this year is about 580,000 tons less than the output. The remaining amount is not too large, so it will not have much impact on the overall price of rubber.