The Hindu Business Line : Thailand rubber body sees stable price trend

THAILAND, the world's largest natural rubber producer, does not expect a wide fluctuation in rubber prices from the current of about $1.50 a kg for the RSS-3 grade.

According to Mr Boonharn Ou-Udomying, Chairman of Rubber-based Industry Club of the Federation of Thai Industries, prices are unlikely to change drastically till the end of the current year.

Speaking to Business Line on the sidelines of the ongoing India International Commodity Fair, Mr Ou-Udomying said the high crude price that impacts synthetic rubber prices was one reason that would keep prices at the present rates.

The Thai rainy season that will affect tapping, thereby reducing supplies would also have a bearing on the prices. "Prices should stay at little higher or at the same level till end of the year," he said.

Thailand, which produced 2.8 million tonnes of natural rubber in 2004, expects its production to touch $2.9 million this year. The country exports 90 per cent of its natural rubber produce to countries such as China and Japan. About one million each of its produce is in the form of block rubber and sheet rubber.

Thailand also produced some 1,25,000 tonnes of synthetic rubber last year. On whether Thailand is keen to include natural rubber in the free trade agreement with India for free imports, Mr Ou-Udomying said his industry would not press for such a step since the country has no urgent need to look for new markets for its exports.

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