Thailand To Sign Rubber Supply Deal With China’s Sinochem


28 October 2015

By Supunnabul Suwannakij


Bloomberg – Thailand plans to sign deal next month with state-owned Sinochem Group to supply 200,000 tonnes for 1 year, Minister of Agriculture and Cooperatives Chatchai Sarikulya says in interview on Wednesday in Bangkok.


* Thailand seeking to reduce rubber surplus through sales to China: Chatchai

* NOTE: Separately, country already has 2 deals totaling 408,000 tonnes with China Hainan Rubber Industry

* Govt asked Thai exporters to build stockpiles by ~300,000 tonnes to help absorb supply; shippers agree in principle to buy rubber: Chatchai

* Govt allocates 12 billion baht for rubber farmers to create jobs, offsetting decline in income amid rubber price slump: Chatchai

* Govt also considering measures to cut costs, boost productivity for farmers, increase local demand, he says

* �Through these measures, rubber prices will increase,� says Chatchai

* �This government will definitely not interfere with product prices,� he says. �We want prices to move in line with market mechanism�

* NOTE: Export price of Thai RSS3 rubber -18% YTD to lowest since December 2008; Futures in Tokyo -23% YTD

* NOTE: Thailand top producer, exporter; China largest consumer