Rubber Prices In Thailand Are At Their Lowest In A Decade

- Nov 27, 2018-

Recently, the price of rubber and palm and other agricultural commodities continued to decline.

The deeper reason, some analysts believe, is a shift in global consumer demand trends: more alternatives are emerging, reducing demand for them.

Thailand's office of agricultural economics has released a chart of price fluctuations covering two of the country's largest agribusiness products, rubber and palm, over the past decade.

Whether it's rubber or palm, the chart shows that prices have generally been on a downward trend over the past decade.

Among them, the downward trend of rubber prices is more prominent.

It hit a high of bt137.94 per kg in 2011 but has since fallen to a low of bt42.38 per kg this year.

It is understood that, in the past few decades, rubber has been Thailand's raw material export products, the development of deep processing industry and rubber plantation area increased disjointed, resulting in a serious oversupply of domestic rubber.

In the case of reduced foreign demand, export-oriented Thailand's rubber industry will be hard hit by falling prices.

In particular, affected by the deceleration of the growth of automobile consumption demand and the sharp increase of domestic rubber inventory, China has reduced the import of rubber to Thailand and sharply reduced the export price of natural rubber to Thailand.

Of course, the production of synthetic rubber products increased, the demand for natural rubber also formed a big impact.

Either way, rubber and palm prices in Thailand are at their lowest levels in nearly a decade.