Rubber prices will stabilize this year before falling continuously between 2018 and 2022 because of oversupply, the Cambodian Ministry of Agriculture forecasts.

According to Cambodian Ministry of Agriculture Minister Veng Sakhon, global rubber supply will reach 12.7 million tonnes this year, with a deficit of 36,000 tonnes.

However, from 2018 to 2022, global rubber supply will increase sharply and exceed demand, pull rubber prices back down trend. Prices will recover in later years when demand exceeds supply.

In addition to supply and demand factors, rubber prices are also affected by a number of other factors, including global economic growth, crude oil prices, foreign exchange rates and other commodity prices. market.

“Rubber prices could stabilize if crude prices rebounded to $ 54-60 a barrel,” Sakhon said. However, the current price of crude oil is only around $ 45 to $ 48 per barrel.

Natural rubber prices in Cambodia averaged $ 1,940 a tonne, higher than the current global price of $ 1,700 per tonne.

(According to Economics & Consumer)