Steady Growth of Thailand's Rubber Industry
Thailand's rubber industry this year is likely to grow steadily, as a result
of the expansion in related industries and the Government's policy of developing
Thailand into one of the world production centers for automobiles and automotive
parts.
The Director-General of the Office of Industrial Economics,
Dr. Atchaka Brimble, said that rubber production in Thailand is expected to
increase by at least 10 percent in 2007. The increase is also attributed to
the establishment of rubber research and testing laboratories and the wider
use of rubber gloves for medical and other purposes. In the agricultural sector,
more rubber is being used to build rubber dams, reservoirs, weirs, and roads.
In 2006, rubber production remained one of the country's major
industries contributing to the Thai economy. Thai rubber exports amounted to
8.4 billion US dollars, an increase of 39 percent over the figure in the previous
year. The growth rate is considered satisfactory, and it was in line with the
rising demand in the Chinese market.
Rubber prices in 2007 are likely to fluctuate in accordance
with production factors and demand among users, as well as oil prices in the
world market. In 2006, Thailand's rubber price stood at 55 to 70 baht a kilogram.
The price is expected to remain unchanged this year and next year.
Currently, Thailand is the world's largest natural rubber producer
and exporter. Dr. Atchaka pointed out that although Vietnam's rubber production
is still minimal when compared with that of major producers, such as Thailand,
Indonesia and Malaysia, the country last year enjoyed the highest growth among
all rubber producers.
It is believed that China and India still play an important
role as major rubber users. China, in particular, is expected to emerge as the
world's largest rubber user in accordance with its economic expansion in the
next 15 years. This situation is like that in the United States during the period
from 1960 to 2002.
Global demand for rubber is now about 20 million tons a year.
It is expected to increase to 28 million tons annually in the next few years.
Thailand stands a good chance of exporting more rubber, taking into consideration
that its annual rubber exports now stands at only three million tons. About
90 percent of Thailand's rubber production is exported.
Rubber production in Thailand is a well-developed industry.
In the early stage, rubber planting was restricted to high rainfall areas of
the southern region. It was later diversified to the eastern and northeastern
regions of the country to increase output.
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