Thailand, the world's largest natural rubber (NR) supplier, exported 416,000 tonnes of NR, including mixture of rubber and compound rubber, in June 2022. , up 22.8% over the same month last year.
Total exports in the first half of the year (January to June) increased by 7.6% year-on-year to 2.482 million tons. The data was announced by the Thai Customs Department on July 28.
Exports in June consisted of 33% mixed rubber, 31% block rubber (TSR), 25% latex and 11% in other forms including RSS. Table 1 presents the composition of export products in June 2022 and in the first half of the year (January to June) 2022.
Thailand is heavily dependent on China for NR exports. China accounted for 51% of exports in June 2022. The second largest export destination, Malaysia, accounted for only 11% of Thailand's June NR exports. Exports to the United States accounted for only 5% of the volume shipped in June (Table 2).
Thailand is heavily dependent on China for NR exports. China accounted for 51% of exports in June 2022. The second largest export destination, Malaysia, accounted for only 11% of Thailand's June NR exports. Exports to the United States accounted for only 5% of the volume shipped in June (Table 2).
Of the 214,000 tonnes exported from Thailand to China in June, 63% was in the form of mixed rubber (HS 400280). China imports mixed rubber in large quantities because it is only subject to zero customs duty (0%) if it is imported from the ASEAN region. However, imports of TSR and mixed rubber will be subject to an import duty of 20% (or RMB 1,500/ton, whichever is lower).
Centrifugal latex accounted for 20% of Thailand's total NR exports to China in June. June saw a spike in Thailand's rubber latex exports to China (From 10,000 tons in June, 2021 to 42,000 tons by June 2022). China has significantly increased its rubber glove production capacity over the past two years in response to the pandemic. The world's glove production capacity, heavily concentrated in Malaysia, is gradually shifting to China and a number of other countries including Thailand. To meet the growing demand from the country's glove manufacturers, China may have to rely more on imported centrifugal latex in the future.
Meanwhile, centrifugal latex accounted for 89% of the total NR 47,000 tons exported from Thailand to Malaysia in June. Notably, the first half of this year (January-June 2022) has seen decline in Thailand's rubber latex exports to Malaysia.
Thailand exported 21,000 tonnes of NR to the US in June 2022. Of these, 52% was TSR. Thailand's natural rubber exports to the United States increased at an annual rate of 18.2% in June and 18.8% in the beginning of the year (January-June).
In June, Thailand exported 136,000 tons of mixed rubber, of which 99% went to China. FOB price of mixed rubber exported to China in June was 177.3 USD/100 kg.
Thailand exported 131,000 tons of block rubber (TSR) in June. China accounted for 26%. The FOB price of TSR exported to different countries varies widely, from 166.5 USD/100 kg to 187.5 USD/100 kg (table 3).
Of the 103,000 tonnes (wet weight) of centrifugal latex exported from Thailand in June, Malaysia and China accounted for 41% each. It is noteworthy that prices vary widely in destination countries, ranging from 136.2 USD/100 kg to 159.2 USD/100 kg (table 4).
RSS exports from Thailand in June stood at 33,000 tons, of which 27% went to Japan and 21% to the US. Prices for FOB RSS exports to countries vary widely, from $199.0 per 100 kg to $219.0 per 100 kg (table 5).
According to Jom Jacob (https://www.linkedin.com/pulse/thailands-june-natural-rubber-exports-jump-228-jom-jacob/)
NGUYEN ANH NHA (Vietnam Rubber Research Institute) summary
http://tapchicaosu.vn/2022/08/22/xuat-khau-cao-su-tu-nhien-cua-thai-lan-tang-228-trong-thang-6-2022/
