RUBBER PRICES IS SURGING DUE TO COVID-19

Rubber prices in October ended the last session of the week (May 21) rose 1.6% compared to the previous session, up by JPY 251.3 ( USD 2.3)/kg; for the whole week, the price increased by 3.8%. On the Shanghai exchange, the price of the September futures contract also increased by 470 CNY to 13,675 CNY (US$2,125)/ton; On the Singapore exchange, rubber in June rose 1.5% to US cent 167/kg.

Rubber prices in the domestic market also surged even though the latex season just started. Accordingly, dried latex is currently 43-45 million VND/ton (compared to about 25-30 million VND in the years 2012 to 2020); latex also increased from VND 8,000 - 10,000/kg to 15,000 - 17,000 VND/kg.

Natural rubber prices have started to rise again since mid-April due to tight supply and increased demand, not only in the production of rubber gloves and tapes but also in the whole tire industry.

In addition, the pandemic that makes it difficult to transport rubber (the inefficiency of containers) is also affecting rubber prices, causing a local shortage of supply in the European and American markets, although it has not happened in China yet. This item is inefficient. 

The Covid-19 pandemic broke out in Asia, making it difficult to harvest latex because of a shortage of human resources, causing a shortage of the supply of this commodity.

>> Click HERE for the best natural rubbers<< 

In India, the world's second-largest rubber consumer, after China, and the sixth-largest rubber producer in the world, the number of Covid-19 infections as of May 19 has reached 25.5 million people. The state of Kerala, India's largest rubber producer, has imposed a blockade since early May due to a strong outbreak of the Covid-19 pandemic.

In Thailand, the world's leading rubber producer and exporter, a resurgence of the Covid-19 epidemic is also raging when the total number of cases so far has been four times higher than in early April 2021. Bangkok has become the epicenter of the pandemic with the number of deaths quadrupled,

Báo cáo của Hiệp hội các nước sản xuất cao su thiên nhiên (ANRPC) mới đây cho biết trong khi sản lượng cao su thiên nhiên thế giới tháng 4/2021 đạt 903.000 tấn thì nhu cầu trong cùng tháng lên tới 1,129 triệu tấn.

According to the Association of Natural Rubber Producing Countries (ANRPC), the world's natural rubber production in April 2021 reached 903,000 tons, the demand in the same month reached 1.129 million tons.

"Nguồn cung cao su toàn cầu chuyển sang thiếu hụt do Trung Quốc tăng cường mua vào. Ngành sản xuất ô tô Mỹ hồi phục tích cực cũng góp phần làm cho thị trường thêm sôi động", NS Ramaswamy, Giám đốc phụ trách mảng hàng hóa của Ventura Securities cho biết.

"Global rubber supply has turned into a shortfall due to increased purchases by China. The positive recovery of the US auto industry also contributes to making the market more exciting," said NS Ramaswamy, director of the product division. of Ventura Securities said.

Due to the increasing global demand for rubber, Vietnam's rubber exports in the first four months of 2021 also increased sharply, up 73.2% in volume over the same period last year, reaching 468,202 tons, and the value collected also increased. 103.4 percent, reaching 784.4 million USD; the average export price of rubber increased by 17.5% to 1,675.4 USD/ton.

In which, exports to China reached 323,597 tons, equivalent to 518.83 million USD; turnover increased by 89.6% and 119% respectively over the same period last year, accounting for nearly 70% of rubber exports of the country.

Exports to other markets also increased simultaneously, accordingly to India reaching 24,392 tons, equivalent to 44.45 million USD, up 58.2% in volume and 90% in turnover; Korea reached 12,641 tons, equivalent to 24.21 million USD, up 29.7% in volume and 56.9% in turnover; The US reached 12,427 tons, equivalent to 21.94 million USD, up 60.5% in volume and 94% in turnover.

The prospect of rubber exports in the near future will remain positive as demand is forecasted to continue to increase, while supply cannot recover soon.

According to Sri Trang's CEO, Veerasith Sinchareonkul "The tire and auto industry recovers quickly this year, the demand will rise sharply while supply does not increase, so rubber prices will increase", except there was an unusual disruption in world economic activity.

Said Mr. Sinchareonkul: "In the past, supply increased at a faster rate than demand, but this year supply increased much slower."

Sri Trang forecasts global rubber demand will increase by 5% - 7% in 2021, while supply will still increase by only 2%.

The demand for auto tires rose due to the recovery in auto sales and tourism is the main driver for the rubber market, where 80% of the supply goes to tire production.

The demand for rubber gloves is also expected to continue to increase due to the outbreak of the Covid-19 pandemic in emerging economies.

A strong recovery in oil prices will also be a positive factor for natural rubber prices, as an increase in oil prices will cause prices of synthetic rubber - a competitor of natural rubber - to increase accordingly.

>>>Click HERE for more market news<<<

Source: Nhip song kinh te

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