Stock Exchange, TFEX and RAOT jointly develop a rubber reference price (Rubber Reference Price) for use as a reference in domestic and international trading transactions. and develop related products Confident that the price calculation process is standard and transparent, ready to support Thailand’s EUDR tires.
Ms. Rinjai Chakornpipat, Managing Director of Thailand Futures Exchange Public Company Limited (TFEX) and Mr. Nakorn Takwiraphat, Governor of the Rubber Authority of Thailand (RAOT), signed the memorandum of understanding. Cooperation (MOU) to develop rubber price calculations It will calculate and publish the reference price (Rubber Reference Price), which includes the price of 3rd class smoked rubber sheet published at 12.00 hrs. and the price of concentrated latex and block rubber published at 7.00 pm. It is scheduled to start publishing the price of 3rd class smoked rubber sheet. 3 in July 2024 and prices of concentrated latex and block rubber in September 2024 onwards.
Ms. Rinjai revealed that
the preparation of this memorandum of cooperation The objective is to develop Thailand to have a reference price for trading in rubber (Rubber Reference Price) that is acceptable to entrepreneurs and those involved. This will benefit the entire rubber industry. and related industries It is intended that the reference price developed here will be accepted and used as a reference in both domestic and international trading transactions. TFEX is the one who calculates and publishes the reference price. In the process of operations, the methods have been set as standards and published for general information. To create confidence in the transparency of the reference price, in the future TFEX and the Rubber Authority of Thailand will consult with operators to study ways to develop rubber prices that are free from deforestation (European Union Deforestation Free Regulation or EUDR). Moreover, TFEX will study the possibility of using such reference prices to further develop products related to Rubber Futures.
Mr. Na
korn Takwiraphat, Governor of RAOT, revealed that Thailand is considered the world’s largest rubber producer. But in the past, reference to rubber prices for international trading contracts still mainly referred to prices from foreign rubber markets. Therefore, when Thailand can develop a calculation formula to set its own reference prices, it will help reflect the true costs of farmers and producers. Can produce Thai rubber RAOT as the central agency responsible for overseeing the management of the entire Thai rubber system. As well as trading in domestic rubber and exporting rubber products to foreign countries. Therefore, we cooperate with TFEX to jointly develop the calculation of reference prices. For use in Thai rubber trading that is transparent and up to international standards. Ready to publish the price to the public. For those involved to use it as a base for setting prices for rubber sales contracts for export abroad (FOB prices), which will build confidence among those involved in the rubber indu
stry. RAOT has the duty to collect and Deliver trading volume information Basic information on various types of rubber products and other necessary information that occur in the central rubber market in each province of RAOT to TFEX and cooperate with TFEX in developing a formula for calculating reference prices and jointly publishing prices further.
‘I believe that this cooperation It will be an important step in creating a reference price standard for Thai rubber that will be accepted at the international level. Leading to elevating Thailand to be the center of the rubber product industry. This will be of the greatest benefit to rubber farmers and Thai rubber business operators. To build strength and stability in the profession,’ the RAOT Governor added.
Mr. Korakot Kittiphon, secretary-general of the Thai Rubber Association, revealed that for 30 years, Thailand has used foreign reference prices. It is considered that the use of a reference price in trading rubber (Rubber Reference Price) comes from the a
ctual production costs of Thailand. It is considered a new dimension. This is a collaboration between TFEX and RAOT, making it transparent. It is beneficial to farmers who will have increased income. Meanwhile, entrepreneurs will have more margin. In addition, there is a suggestion to make additional announcements regarding raw material prices, which raw material prices have an impact on farmers. and reliability of Thailand If it is a reliable raw material price, it can also be used as a reference price.
Entrepreneurs and investors can follow additional information at the TFEX website www.TFEX.co.th and the RAOT website www.raot.co.th.
Source: Thai News Agency