Thai rubber prices hit near 3-year high

Thailand's benchmark rubber prices rallied and nearly reached a three-year high this month as global demand rose and China's economy recovered, a Thai official said on Tuesday.

Thai benchmark smoked rubber sheets (RSS3) began rallying in July and rose to the highest levels in nearly three years at 64.65 baht ($2.06) per kg last week.

It has eased a little and was quoted at 61.25 baht per kg on Tuesday. Prices for the grade have usually hovered at levels under 50 baht per kg in past years.

"Rubber prices increased from global demand, driven by Chinese exports after the economy began to recover," said Deputy Government Spokeswoman, Rachada Thanadirek.

She also said Thai exports of rubber gloves, the world's second-largest after Malaysia, are set to grow 8% to 15% this year.

For years, Thailand has had to subsidise rubber prices to support farmers.

The government is managing domestic supply and avoid relying on exports and will seek to reduce supply by 500,000 tonnes over three years, Rachada added.

The cabinet approved the export of 300,000 tonnes of palm oil due to excessive supply by March next year to maintain domestic prices.