RUBBER PRICE IS EXPECTED TO KEEP RISING DUE TO ITS RECOVERY 

Rubber prices tend to bottom for 6 consecutive months.

At the Osaka Commodity Exchange (OSE) Japan, the price dropped to the lowest on November 5 (at 212 yen/kg), then rose again.

On November 29, the price of RSS3 rubber for delivery in January 2022 traded at 232.5 yen/kg (equivalent to 2 USD/kg), up 4% compared to the end of October.

At the Shanghai Commodity Futures Exchange (SHFE), on November 29, the price of RSS3 rubber for delivery in January 2022 was at 15,185 yuan/ton (equivalent to $2.36/kg), up 2%. compared to the end of the month 10.

The situation of the COVID-19 epidemic in rubber-growing provinces such as Binh Phuoc, Binh Duong, Tay Ninh, and Dong Nai is still complicated, affecting rubber latex production and harvesting activities.

In the month of November, smallholder rubber latex purchased by traders fluctuated around 290-335 VND/degree TSC.

In Binh Phuoc, the purchase price of latex fluctuates at 293-333 VND/degree TSC, down 10 VND/degree TSC compared to the end of month  10. In Dak Lak, the price of the first cup latex was recorded at 16,000-18,000 VND/kg depending on the type.

In Binh Duong, the purchase price of raw rubber latex fluctuates around 334-336 VND/degree TSC. In Dong Nai, the purchase price of raw rubber latex fluctuates at 330 VND/degree TSC.

"Rubber prices for November were volatile, prices rose to a 6-month high (November 25), we hope that production would recover from a slump caused by shortages", said the Import-Export Department.

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However, the new variant of the SARS-CoV-2 virus caused rubber prices to drop in the last days of the month.

With the ability to infect more dangerously than the Delta variant and stronger vaccine resistance, information about the new virus variant caused Asian and European stock markets to simultaneously plunge on November 26, causing prices to fall. Natural rubber trading in the world also decreased.

According to the latest report of the Association of Natural Rubber Producing Countries (ANRPC), the world demand for natural rubber in 2021 is estimated to increase by 8.3% compared to 2020, to 14,028 million tons.

Based on preliminary estimates from member countries, world natural rubber production is adjusted to 13,836 million tons, up 1.8% compared to 2020. According to data, the world will be short of 192 thousand tons of natural rubber in 2021.

Global supply remains tight largely due to unusual rains that have affected key rubber growing regions in India, Thailand, and Malaysia.

In particular, Thailand and the main rubber growing areas of  Malaysia experienced a prolonged rainy season due to the influence of the La Nina phenomenon.

On the other hand, the easing of restrictions related to the pandemic COVID-19 such as the reopening of international borders of some countries and the resumption of economic activities have significantly contributed to the recovery of the high-tech industry.

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