Delay in US, China new tit-for-tat trade measures expected to boost rubber demand

BANGKOK, December 7 (TNA) - It is expected that a delayed move now by the United States and China to implement their new tit-for-tat trade measures against each other should boost market demand for natural rubber in the immense Chinese economy. Thai Agriculture and Cooperatives Minister Grisada Boonrach told journalists of his assessment on Friday, noting that the agreed move by Washington and Beijing recently on delaying the imposition of their higher import tariffs reciprocally on certain products, including tyres, should result in more demand for natural rubber by Chinese manufacturers of tyres to be shipped to the large US market, which should boost the prices of natural rubber on the world market consequently. Grisada said the production of tyres in China had been slowed down prior to the agreed move by Washington and Beijing, as the Chinese tyre manufacturers that normally use over 70 per cent of the total natural rubber supply in the country were concerned over impacts from the planned higher tariffs. Besides, the depreciation of the Chinese currency has made imported natural rubber from Thailand and other countries become more expensive for Chinese business operators. To help boost the domestic demand for natural rubber, the minister, meanwhile, held a meeting with representatives from the Federation of Thai Industries (FTI) to seek their cooperation on promoting more use and direct purchases of locally-grown natural rubber from the Rubber Authority of Thailand (RAOT), or other established rubber bodies, representing local rubber growers, with an agreed move expected to be announced within seven days. According to the minister, the cooperation could then result in more purchase orders of natural rubber by many producers in Thailand who have imported the product from overseas future markets. (TNA)