SCI News Rubber

Thai Cabinet passed the THB 1.8 billion budget to stimulate the rubber utilization nationwide

The Thai cabinet passed a THB 1.8 billion budget proposal to stimulate the rubber utilization nationwide by the Ministry of Agriculture & Cooperatives, the Ministry of Defense, and the Ministry of Tourism & Sports. The Ministry of Defense will get a budget with over THB 1.55 billion, and the Ministry of Tourism & Sports will get over THB 0.13 billion. The Ministry of Agriculture & Cooperatives will get the left THB 1.6 billion. The policy was set to increase the rubber utilization nationwide and decrease the dependence on export. The Cabinet wants to ease the oversupply in the rubber industry and to stabilize the rubber prices. Besides, if the policy is efficiently implemented, the rubber producing and processing industry are likely to be restructured in Thailand.

China’s tire oroducers installed oroduction bases in the U.S.

Triangle Tire Company was planning to set a new production base in the U.S. A manager at the company expressed that seeking global development was one fixed policy for the company. But there was no actual action in the construction of the U.S. production base.

Several China’s tire producers have announced to set production bases in the U.S. since 2016. And some producers have taken action.

Guangzhou Vanlead Group, one of China's leading radial tire producers, expects the construction of its $1 billion production base in the South Carolina State of the U.S. to start in the first half of next year. The U.S. tire plant will be a milestone in Vanlead's global brand-setting. Qingdao Sentury Tire Company also plans to invest $0.53 billion to set a semi-steel radial tire plant with the annual production of 12 million pieces in Georgia State. Although Shandong Linglong Tire Company plans to set a production base in Europe, it may set a plant in the U.S. in the future. The parent company of Double Coin Holdings Company, Shanghai Huayi (Group) Company also delivers message that it is willing to set a plant in the U.S.

Rains came in Yunnan, rubber tapping affected

The rubber plantations in Xishuangbanna, Yunnan, suffered much rain recently. The rubber farmers said that the rainy weather lasted over a month. There was more raining days from the usual years. The rubber tapping and production was affected then.

The Rains Affected the Rubber Tapping

The rainy weather in Xishuangbanna lasted over a month. The continuous rain influenced the normal rubber tapping activities. Thus, the output of field latex was impacted. One rubber farmer showed that there were more raining days this year. The plantation has stopped rubber tapping for over 8 days in July. However, the rubber tapping and the output was also not good in the normal day.

The Operating Rates Were not High at the Rubber Feedstock Processing Plants due to the Feedstock Shortage

The feedstock supply was tight due to the rainy weather and the low prices. The output of field latex declined notably. One manager of a rubber feedstock processing plant showed that the plant did not receive rubber feedstock from the plantations for about 10 days. The operating rate was low. It only maintained the production for low grade standard rubber and tire-grade rubber. One manager from another plant showed that the overcapacity and the tight supply of feedstock lasted for a long time. The rainy weather and the low prices of the rubber feedstock made the supply worse.