Bangkok--3 Apr--AFET
AFET Launches LATEX for Trading on March 31
Expects positive response as the Latex Industry continuously boomed by 72.41% during the Past 5 Years
Mrs. Napaporn Kurupasutachai, President of The Agricultural Futures Exchange of Thailand (AFET), revealed that on March 31, 2006, AFET will list High Ammonia Concentrated Latex (LATEX) on the futures board for trading. LATEX, being the latest underlying product and the third product in the Rubber series, is expected to gain a lot of interests from producers, proprietary traders. Thailand is the world's largest producer and exporter of natural rubber latex.
The AFET President said, "The production of latex in Thailand between the year 2000 and 2004 has rapidly increased by 72.41 percent from 290,000 tons to 500,000 tons respectively. This growth is driven by the expansion in the downstream industries, such as, rubber glove, catheters, and condom, and toys."
AFET has established LATEX contract specifications according to latex standard as certified by Rubber Research Institute of Thailand. Each trading contract is 5,000 kilograms or 5 metric tons and each delivery unit is 20,000 kilograms or 20 metric tons. The minimum price fluctuation limit or tick size is 0.10 baht per kilogram. Daily price fluctuation limit is 2.00 baht per kilogram. Contract months are six consecutive months from the nearest contract month and the last delivery day is the last business day of the delivery month. AFET will initially launch futures contracts for July to October 2006 deliveries.
The AFET President also said, "Latex is suitable for trade on the bourse as it has potential. It will allow producers, proprietary traders, and other related hedgers to use the futures market mechanisms in risk management. The physical delivery also opens another channel in source of supply for Latex product users.
If the number of buyer and seller in the market is sufficient enough, the price of Latex in AFET will reflect the true market price and can be use as a reference globally. Moreover, delivery of Latex under AFET's quality standard can also set a benchmark for the industry in terms of product quality".
"As for investors, we expected a good response since Latex is one of the rubber products and will supplement the existing products." Mrs. Napaporn said.
Latex is used as raw materials in various industries. The drip process is used in manufacturing gloves, ballons, condoms, bottle nipples, and medical equipments, while the coating process is use for lining carpeting products to add rigidity and increase comfort. The foaming process latex is used in mattress, pillows, and cushions. Latex has also found its way in the textile and garment industries such as waistbands and fashion accessories.
For more information please contact:
Khun Rongthep Rochanapruk
Tel. 0 2263 9888 Fax. 0 2685 3345