Will Thailand permit raw rubber imports to ease supply shortages?

Question

Accepted Answer

Thailand's Stance on Raw Rubber Imports Remains Uncertain Amidst Supply Shortages

Thung Yai Rubber Co. Ltd, a Malaysian-owned company operating in Thailand, has expressed hope that the Thai government will consider permitting the import of raw natural rubber from outside the country to address current supply shortages. The company is facing difficulties in securing sufficient raw rubber, potentially due to the hot season and prevailing rubber prices, which has necessitated paying higher prices for available local supply as imports are prohibited. While the company is advocating for a policy change, the Thai government's decision on this matter remains undecided.
Thung Yai Rubber's Current Challenges

Thung Yai Rubber Co. Ltd is experiencing a significant shortage in its raw rubber supply. Director Steven Te indicated that this scarcity could be attributed to the current hot season and its influence on rubber prices. As Thailand currently prohibits the import of raw rubber, the company is compelled to pay elevated prices to secure the limited available domestic supply.
Company's Hope for Bilateral Discussions

The company has voiced its aspiration for this supply issue to be addressed in future bilateral discussions between Thailand and Malaysia. This suggests that Thung Yai Rubber believes diplomatic engagement between the two nations could lead to a resolution or policy consideration regarding cross-border raw rubber trade. The Ambassador to Thailand and the Consul General of Malaysia in Songkhla have visited the factory, indicating an awareness of the company's operational context and challenges.
Production Capacity and Market Reach

Thung Yai Rubber possesses a substantial production capacity, estimated at 4,000 tonnes per month. The factory produces various grades of natural rubber, including STR10, STR20, and STR Mixtures Rubber. The natural rubber manufactured by the facility is primarily for domestic consumption, with additional exports directed towards markets in China, Europe, and the Middle East.
Company Background and Operations

Thung Yai Rubber is a joint venture that commenced operations in 1998, involving companies from Malaysia, China, and Thailand. The company is headquartered in Nakhon Si Thammarat, with an additional office located in Songkhla, in Southern Thailand. This long-standing presence highlights its established role within the region's rubber industry.

Reading history

Hide →

This history is cleared when the page is closed.

Will Thailand permit raw rubber imports to ease supply shortages?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends