(MENAFN) Rubber demand from Thailand soared along with the surge in the car industry, but when the auto demand fell, the rubber followed, Times of Oman reported.
Farmers in Thailand, the world"s largest rubber exporter, plant more when demand is high, but when the new trees were ready to deliver, the demand has dropped significantly leaving the country with a huge surplus.
"In recent years the global price of rubber has been on the decline mainly because of overproduction coming from countries like Thailand and Indonesia," Simmathiri Appanah, former expert with the UN Food and Agriculture Organization.
"With the economic slowdown in many of the developed countries' economies, demand for these products is going to stall somewhat," he added.
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