Updated - China buys 200kt of Thai rubber as talks continue

London – Sinochem has signed an agreement with the Rubber Authority of Thailand to purchase 200 kilotonnes of natural rubber.

The deal marked Sinochem’s largest natural rubber order in 2015, according to a statement from the China state-owned enterprise.

The announcement coincides with on-going trade talks between China and Thailand, focused on enhancing co-operation between the two countries.

The talks included a 17 Dec meeting between Thai prime minister Gen Prayut Chan-o-cha and Wang Yong, Chinese state councillor.

These discussions “touched upon” an agreement involving 200,000 tonnes of rubber between the Thai and Chinese governments, said a Thai government statement.

PM Prayut, it added, also invited China to invest in Thailand’s southern economic area, which is a major production base for rubber among other crops and commodities.

By the end of 2014, Sinochem Group had over 80,000 hectares of rubber and oil palm plantation, with 22 NR processing factories in China, Thailand and West Africa and a total capacity of more than 700,000 tonne/year.

Last year the group sold over 800,000 tonnes of natural rubber, claiming the third spot in global market share.