Thailand's Rubber Exports Rise in Price in 2012 and China's Tire Industry Benefits

According to information released by the Thai Rubber Federation, in 2012, Thailand produced 3.5-355 million tons of rubber in the year, of which 3 million tons were exported, which was basically the same as last year's 2.99 million tons; but the total value of exports fell to 250 billion baht, which was far below The 300 billion baht in 2011 was mainly due to an oversupply in the international market leading to a drop in prices. China's tire industry to fluctuations in the price of natural rubber is sensitive, most of Thailand's natural rubber exports are China, the price dropped in favor of Chinese tire manufacturers to reduce production costs and promote industry profitability.

In 2012, the Thai government launched a protection price acquisition plan to purchase rubber agriculture rubber at a price of 5é“¢ per kilogram, which will end in March 2013. According to statistics, in 2012, the Thai government purchased a total of approximately 200,000 tons of natural rubber raw materials.

It is expected that the total rubber production in Thailand will remain at 3.6 million tons in 2013, and China is the largest export market for Thai rubber. It imports about 1.5 million tons of Thai rubber annually, accounting for about 50% of Thailand's total natural rubber exports. Natural rubber is the main raw material for the manufacture of tires. As a big country in the tire industry, the decline in natural rubber prices is conducive to the reduction of tire manufacturing costs, which is a good news for China's tire industry.

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