May average RSS3 price announced by Central Rubber Market in Songkhla stood at 53.87 Baht/kg, down 0.19 % from April due to the following factors. Rubber prices moved in a narrow range, no different from those in April. Rubber output is still tight due to the wintering season which resulted in low inventory level for rubber processors and exporters. This was coupled with the beginning of rainy season in Thailand which precluded tapping. Rubber prices are likely to improve after Thailand agreed to cut rubber export of 126,240 tons. Crude oil prices are likely to fluctuate in the high, as OPEC producers are not in a rush to increase crude oil output and are likely to extend crude oil production cuts to the end of 2019. America’s job market is booming, and the economy is strong, due to low interest rate. President Trump raised tariffs on Chinese goods, reviving US manufacturing. Japan economy beat expectations of slowdown. However, rubber prices would be affected by US-China trade tensions. Economic slowdown continued in the EU.
In April, Thailand exported 248,696 tons of natural rubber (including compound rubber), down 17.91 % from March and 28.53 % yoy, generating export income of US$ 342.30 million, down 13.47 % from March and 32.59 % yoy. Overall, during the first 4 months of 2019, Thai NR exports (including compound rubber) reached 1,156,455 tons, down 9.68 % yoy. The YTD export value touched US$ 1.47 billion, down 17.34 % yoy.
In tyre sector, in April Thailand exported 10.54 million units of all tyres, up 10.93 % yoy, with the export value of US$ 424.33 million, up 23.11 % yoy. Overall, during January to April Thai exports of all tyres reached 42.57 million units, up 0.32 % yoy, generating export revenue of US$ 1.72 billion, up 13.68 % yoy.
