Thai rubber prices have increased 19 per cent in less than a month due to severe flooding.
The price rose from 41 baht per kg (82 pence) to more than 48 baht per kilo (96 pence) in December, having previously fallen by almost 41 per cent over the course of the previous year. In January 2014 the price was 70 baht per kilo (£1.40).
According to Mintec, the price of rubber is expected to continue to increase in 2015 as a result of flooding, which has hit key producer countries in South East Asia.
Thailand, Malaysia and Indonesia account for 70 per cent of the world’s natural rubber output, while the flooding threatens 23 per cent of global rubber production.
“The loss in Thai plantations may reach 43 per cent of Thailand’s capacity,” said Mintec.