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Rubber quality, productivity key to retaining edge in China

Thai rubber producers need to improve productivity and quality if they want to continue being the top exporters to China, says Chutima Boonyaprapas, the head of the Trade Negotiations Department at the Commerce Ministry.

While Thailand is the largest rubber supplier to China, Chinese buyers could shift to Malaysia and Indonesia at any time if they provide better quality products.

In the first half of this year, Thai exporters shipped 1.4 million tonnes of rubber abroad, of which 300,000 tonnes went to China. Indonesia exported 217,000 tonnes to China and Malaysia shipped 158,000 tonnes in the same period.

China is the world's largest rubber buyer, importing 700,000 tonnes in the first half of this year.

A report from the China Rubber Industry Association says that rubber consumption would reach 2.3 million tonnes by 2010, due to growing demand in the auto industry. The country's current production capacity is 750,000 tonnes but the government is attempting to increase local supplies.

Ms Chutima said that Thailand in 2010 would have the capability to export 2.6 million tonnes of rubber.

 

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