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Record rubber exports forecast
Rubber export volume could hit a record of 882,000 tonnes this year against the annual target of 830,000, the Ministry of Agriculture and Rural Development has forecast.
According to custom office statistics, the country last month shipped abroad 88,825 tonnes of rubber worth US$252.7 million, up 27.7 per cent in volume and 32.2 per cent in value against the previous month. It raised rubber exports in the first two months to 158,394 tonnes, worth $443.8 million.
General Secretary of the Viet Nam Rubber Association Tran Thi Thuy Hoa said that rising demand on the world market, especially in China and India, contributed to the sharp increase in exports.
"The demand for natural rubber in China, which consumes more than 57 per cent of Viet Nam's produce, is rising as the country imports more to offset decreasing supply." Hoa added.
China's rubber reserve on the Shanghai Commodity Exchange reduced 6 per cent against mid January. Meanwhile, the market this year is expected to consume roughly 3.61 million tonnes of rubber, up 3 per cent over last year.
Rubber export prices to China hit a two-year high over the past few weeks. In March 13, a tonne of SVR 3L rubber reached 24,200 Yuan, up 200-500 Yuan against the previous week. Export volume in March also rose sharply, reaching about 900 tonnes daily compared to 500 in February.
The Indian Rubber Committee also reported the country's rubber output decreasing by 29,275 tonnes, causing a shortage of roughly 100,000 tonnes. Meanwhile, according to the Association of Natural Rubber Producing Countries, the world's three leading rubber exporters Thailand, Indonesia and Malaysia all experienced reductions in crop yield due to unfavourable weather conditions, resulting in declining supply.
The price hike on the global market also contributed to the surge in domestic prices. On the Sai Gon Thuong Tin Commodity Exchange, a tonne of SVR 3L and SVR CV rubber was traded at VND80-81 million and VND84 million, up VND15 million on January.
Despite an anticipated global rubber price hike and the country's optimistic export results in the first two months, experts still recommended local rubber exporters keep an eye on the market, where exports are dominated by the global prices of crude oil, gold and the US dollars.
vietnamnews
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