CHINA'S BUYING LARGE AMOUNTS OF RUBBER, RUBBER PRICES CHANGE

According to the Import-Export Department (Ministry of Industry and Trade), in September 2021, the domestic price of rubber did not change much due to the favorable export to China market.

In Binh Phuoc, the price of latex rubber fluctuates at 303-310 VND/degree of latex. In Dak Lak, the price of the first cup of latex is 16,000-18,000 VND/kg depending on the type.

In Binh Duong, the price of raw rubber fluctuates in the range of 323-325 VND/degree of latex. In Dong Nai, the price of raw rubber is at 308-315 VND/grade of latex.

Producing, processing, and exporting rubber is an industry that Vietnam has many advantages. The report of the Import-Export Department shows that Vietnam is currently ranked 5th in the world in terms of rubber planting area, accounting for about 5.6% of the total global area.

Vietnam's rubber output ranks third in the world, accounting for about 7.7% of the world's total natural rubber, after Thailand and Indonesia. Currently, there are 238 rubber processing enterprises nationwide, with a capacity of nearly 1.2 million tons/year.

Particularly, the Vietnam Rubber Industry Group has 44 rubber latex processing factories and enterprises, with a designed capacity of 433,000 tons/year, accounting for 36.1% of the capacity of rubber latex processing facilities in the country.

The total capacity of the processing facilities currently exceeds the annual rubber output by 15-20%.

>> Click HERE for the best rubber chemicals on the market<<

China buys 99% of a type of rubber from Vietnam 

According to the General Department of Customs, in September 2021, Vietnam's rubber exports reached about 195,000 tons, worth 321 million USD, up 2.8% in volume and 3.1% in value compared to that of the General Department of Customs. with August 2021; The average export price of rubber was at USD 1,646/ton, up 22.7% compared to September 2020.

In the first nine months of 2021, rubber exports are estimated at 1.3 million tons, worth 2.17 billion USD, up 17.1% in volume and 52.7% in value over the same period in 2020.

Notably, most of the exported rubber products achieved good growth compared to the same period in 2020.

The export of natural rubber and synthetic rubber in the first eight months of 2021 accounted for 61.9% of the country's total rubber exports, reaching 686,320 tons, worth 1.12 billion USD, up 14.6% in volume and 47.5% in value over the same period in 2020.

In which, exports to China accounted for 99.6% of the total amount of natural rubber and synthetic rubber exports, reaching 683,260 tons, worth 1.11 billion USD, up 15.8% in volume and up. 48.9% in value over the same period in 2020.

The market share of mixed natural rubber and synthetic rubber of Vietnam accounted for 35.6% of the total import value of natural rubber and synthetic rubber of China, a sharp increase from 24.8 % in the first 8 months of 2020.

Vietnam's rubber market share in China's total import value in the first 8 months of 2021 accounted for 15.9%, up sharply from 13.2% in the first 8 months of 2020.

Talking to Dan Viet, Mr. Vo Hoang An - Vice President and General Secretary of the Vietnam Rubber Association said that China is the largest rubber consumer in the world, so policies and health This second-largest economy in the world greatly affects the global natural rubber market, not only Vietnam.

The fact that Chinese enterprises have increased their purchase of rubber reserves has created an upward momentum for rubber prices since the last months of 2020.

Better demand from China and India is still a positive signal for rubber prices?

According to the latest report of the Association of Natural Rubber Producing Countries (ANRPC), the world demand for natural rubber in 2021 will increase by 9.3% compared to 2020, to 14.1 million tons.

The revised outlook is due to better demand forecasts from China, India, Thailand, and Vietnam in 2021.

Based on preliminary estimates from member countries, world natural rubber production is adjusted to 13.86 million tons, up 2.0% compared to 2020. According to data, the world will shortage of 240,000 tons of natural rubber in 2021.

Mr. Vo Hoang An emphasized Vietnam's rubber industry will strengthen to take advantage of favorable factors from free trade agreements that Vietnam has, is, and will sign with countries in the region and the world. to promote diversification of export markets and increase added value for the industry.

 >> Click HERE for the latest market news<<

Contact

MEGA VIETNAM

Office address: Floor 2-A2-IA20, Nam Thang Long Urban Area, Pham Van Dong Street,

Dong Ngac Ward, Bac Tu Liem District, Hanoi City, Vietnam

Tel: (+84) 24 375 89089; Fax: (+84) 24 375 89 098

Website: megavietnam.vn

Hotline: 1800.577.728 Zalo: 0971.023.523