Rubber Consumption Growth In Southeast Asia, Demand For Gloves Has Become A Key Factor In The Epidemic

- Oct 16, 2020-

Cambodia reported on October 11 that according to a report from the Ministry of Agriculture, Forestry and Fisheries of Cambodia, Cambodia exported 179,621 tons of rubber in the first nine months of 2020, an increase of 3.78% over the same period last year. The owner of a rubber, pepper and durian plantation in Radanaki Province pointed out that his plantation covers an area of 200 hectares and can produce 1,000 tons of rubber each year with an average net income of US$8,000. The average price of latex ranges from 2500 riel (approximately US$0.60) to 2700 riel (approximately US$0.65) per kilogram, compared to 3000 riel (approximately US$0.73) per kilogram last year.

Thailand, as the world's largest rubber producer, has been increasing the demand for rubber gloves and tires and the government's positive attitude to promote rubber exports, which may increase rubber shipments. Thailand’s Minister of Commerce Jurin Laksanawisit recently stated that Thailand’s rubber products revenue this year is expected to reach 359 billion baht (US$11.58 billion), an increase of 3.19% year-on-year. This is mainly due to the recovery of the global economy following the adoption of lockdown measures to contain the new crown virus.

It is understood that in the first seven months of 2020, Thailand's rubber glove exports increased by 38.5% year-on-year to 959 million US dollars. This was attributed to the surge in demand for new crown virus protective gloves. Its main markets include the United States, China, Japan and the United Kingdom. For the whole year of 2019, Thailand made a profit of 1.2 billion U.S. dollars from rubber gloves exports, which accounted for 89% of total output. At present, Thailand ranks fourth in the world in terms of exports of rubber products and semi-finished rubber, after China, Germany and the United States.

Southeast Asia is the main production area of natural rubber in the world. Rubber consumption in Malaysia, Vietnam, Indonesia and other places have all increased due to the epidemic. Malaysia once suffered from a shortage of natural rubber raw materials. The current tire demand continues to increase with the recovery of the global economy, and the domestic consumption and overseas export of rubber in Southeast Asia will further increase in the later period. It is reported that in Thailand rubber products and latex products online business negotiation and matching activities, a total of 17 countries and regions have participated in the negotiation of imported smoked film, bowl rubber and latex. The amount of natural latex required is approximately 853,12 million tons per year.