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Rubber Price Hike Puts Squeeze on Thai Glove Producers.
Byline: Busrin Treerapongpichit
Jul. 1--Several local manufacturers of rubber gloves warn they will be forced to close down in the next few months unless the government helps them cope with a sharp increase in the price of rubber in the first half of this year.
Ironically, the problem grew after the government took steps to help growers by increasing rubber prices.
Prachai Kongwaree, the president of the Thai Rubber Glove Manufacturers' Association, said the rubber price jumped April after Thailand, Indonesia and Malaysia, in a price-supporting move, agreed to set up a joint organisation to buy and store natural rubber sheets.
As well, rubber production was below normal levels as the harvest had been delayed by two months because of a prolonged dry season in rubber producing countries.
Given those factors, rubber latex has soared to 27 baht per kilogramme for July delivery from 15 baht in January.
The scale of ...
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Source: HighBeam Research, Rubber Price Hike Puts Squeeze on Thai Glove Producers.