Joint Release
                                                                                
          TFEX News 6/2024
                                                                                
                   June 12, 2024

TFEX and RAOT join forces to develop rubber reference prices

BANGKOK, June 12, 2024 - Thailand Futures Exchange PCL (TFEX) has entered into a
Memorandum of Understanding (MOU) with the Rubber Authority of Thailand (RAOT)
for collaboration to establish the standardized Rubber Reference Prices. These
benchmarks will serve as references trading transactions for both domestic and
international players and facilitate the development of related products.

TFEX Managing Director Rinjai Chakornpipat said that the initiative is aimed to 
develop a recognized Rubber Reference Prices for Thailand, which will benefit
both the rubber and related industries.

"TFEX and RAOT aim for the reference prices to be widely accepted and used in 
trading transactions domestically and internationally. TFEX will calculate and
publish the reference prices. The methodology for established reference price
will be published for general public to ensure transparency of the benchmark.
TFEX and RAOT also have a plan to consult with the industry to explore the
development of rubber reference prices that comply with the European Union
Deforestation-Free Regulation (EUDR). Besides, TFEX will further explore to
utilize these reference prices for Rubber Futures product development," said
Rinjai.

RAOT Governor Nakorn Tangavirapat said that even though Thailand is the world's 
major rubber producer, the country had relied on international rubber market
prices as reference for its export contracts. Development of its domestic
reference prices will help reflect the costs of Thai rubber farmers and local
producers. To address this issue, RAOT, the central agency overseeing the entire
rubber industry including domestic and export markets, has partnered with TFEX
to develop the reference price calculation methodology for trading Thai rubber
with aims to ensure transparency and adhere to international standards. The
established reference prices will be publicly published, enabling relevant
stakeholders to use them as a basis for determining contract prices for rubber
exports (FOB prices). This development is expected to enhance confidence among
stakeholders in the rubber industry. Under the collaboration, RAOT will gather
and provide data on trading volumes, product information for various types of
rubber, and other necessary information from RAOT's central rubber markets in
each province. TFEX will use such data to calculate reference prices. RAOT and
TFEX will disseminate these reference prices.

"We firmly believe that this collaboration marks a significant step in 
establishing internationally accepted methodology to establish Thai rubber
reference prices and will pave the way for Thailand to become a hub for the
rubber product industry, ultimately benefiting rubber farmers and Thai rubber
entrepreneurs by strengthening their livelihoods and ensuring career stability,"
 added Nakorn.

The MOU signing ceremony was held on June 12, 2024. The rubber reference prices 
will be calculated and published twice daily as follows: the price for Ribbed
Smoked Sheet Grade 3 (RSS3) will be released at 12:00 hrs. (planned to launch in
July 2024), while the prices for concentrated latex and block rubber will be
announced at 19:00 hrs. (planned to launch in September 2024). For information
on the Rubber Reference Prices, please visit TFEX website (www.TFEX.co.th) and
the RAOT website (www.raot.co.th).
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