Thai rubber exporters urged to explore new export markets amid China’s economic slowdown

BANGKOK, August 11 (TNA) - Thai exporters of rubber are urged to explore for other importing markets after demand for rubber in China has dwindled due to slowdown of Chinese economy, according to a report issued by Kasikorn Research Center. The report said Thai rubber exporters should speed on finding other importers and India should be an interesting market for Thai natural rubber while exporters should also consider the U.S., Taiwan and India significant importing countries for rubber compound. It said demand for rubber, especially by automobile, shoes and gloves industries, in China has fallen due to slowdown in Chinese economy resulted partly from financial crisis in Europe which has depressed China’s economy and its auto sales. Several companies including rubber producing factories in China, especially in Shandong province, became bankrupt, causing a sharp increase in rubber stock in the country, the report said. According to statistics released by China’s Customs Department, China imported 990,000 tonnes of natural rubber valued 3.42 billion U.S. dollars during the first half of 2012, up 12.8 per cent in volume but down 17.6 per cent in value year-on-year. The country imported 720,000 tonnes of synthetic rubber valued about 2.68 billion U.S. dollars during the period, up 1.6 per cent in volume and 5.1 per cent in value from the corresponding period of 2011. Kasikorn Research Center said the slowdown in China’s imports of rubber would impact Thai rubber exporters by about 30 per cent of total Thai rubber exports in value. Although China imports more rubber compound from Thailand in the past, it has cut its imports of natural rubber from Thailand, Indonesia and Malaysia and increased imports from Vietnam and Laos where several Chinese businessmen invested in rubber industry there, it said. (TNA)