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Rubber set to bounce back as demand rises
The domestic rubber industry, the fourth largest in the world, expects to have higher export sales this year because of rising prices and demand, the Viet Nam Rubber Association has said.
Rubber prices have jumped to US$1,560-$1600 a tonne, up from a low of $1,280 in January sparked by the global downturn.
Average export prices climbed to $3,000 a tonne in July of last year, but began to slide for the remainder of the year.
Rubber cultivation is expected to cover 640,000 ha this year, bringing an estimated 680,000 tonnes of natural rubber and total export turnover of $1 billion, according to the Ministry of Agriculture and Rural Development.
VN exports rubber to 61 countries.
In the first six months of the year, rubber export volume reached 240,000 tonnes, at an average price of $1,456 a tonne, which brought in an export revenue of $349 million.
However, because of the drop in prices, export turnover dropped by 43 per cent compared to the first half of last year.
Rubber exports to Europe and Japan fell by 31.3 per cent and 35.5 per cent, respectively, but rose in those to Malaysia and China.
China remains the biggest importer of natural rubber, representing nearly 70 per cent of Viet Nam’s rubber exports in the first half of the year.
Although the export volume to China rose 7 per cent compared to last year, prices dropped nearly 60 per cent.
The demand from Chinese tyre manufacturers, however, remains stable.
In addition, crude oil prices have gone up as the global economy recovers, causing an increase in the price of synthetic rubber and higher demand for natural rubber.
The Vietnamese Government aims to increase its rubber tree acreage to 1 million ha, with dried latex output of some 1.2 million tonnes by 2020, and invest in the processing industry to increase production efficiency.
vietnamnews
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