THE SUPPLY IS INTERRUPTED, RUBBER PRICE HAS STRONGLY FLUCTUATED

In November 2021, the natural rubber price at key exchanges in Asia had a session to increase to the highest level in 6 months due to supply disruption and demand recovery, specifically: At the Exchange goods Osaka Exchange (OSE) Japan, the price dropped to the lowest on November 5, 2021 (at 212 yen/kg), then increased again. On November 29, 2021, the price of RSS3 rubber for delivery in January 2022 traded at 232.5 yen/kg (equivalent to 2.05 USD/kg), up 4% compared to the end of October 2021. but still down 7.6% over the same period in 2020.

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At the Shanghai Commodity Futures Exchange (SHFE), rubber prices fell to a monthly low on November 4, 2021 (at 13,900 yuan/ton), then rose again. On November 29, 2021, the price of RSS3 rubber for January delivery term at 15,185 yuan/ton (equivalent to $2.36/kg), up 2% compared to the end of October 2021, but down 0. 1% over the same period in 2020.

In Thailand, at the beginning of November 2021, the price of rubber dropped to the lowest level of the month on November 5, 2021 (at 58.4 Baht/kg), then increased again. On November 29, 2021, RSS 3 rubber price offered for sale at 61.8 Baht/kg (equivalent to 1.83 USD/kg), an increase of 3.5% compared to the end of October 2021, but still down 10 .6% over the same period in 2020.

Rubber prices in November 2021 fluctuated strongly, prices rose to a 6-month high (November 25, 2021) on growing hopes that auto production would recover after a decline due to microchip shortage.

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 dangerous 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, 2021, causing The price of natural rubber traded in the world to also decrease.

The Covid-19 epidemic strongly affected the rubber latex harvest in the country

Domestically, 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 November 2021, the smallholder rubber latex purchased by traders fluctuated around 290-335 VND/degree TSC (the level of latex is the common name for the  TSC-DRC index. dry matter content in natural rubber latex). 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 October 2021. 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 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.

In the 10 months of 2021, the mixture of natural rubber and synthetic rubber (HS code 400280) is still the most exported item, accounting for 62% of the country's total rubber exports, with 925.14 thousand tons, worth $1.52 billion, up 8.5% in volume and 37.3% in value over the same period in 2020. Of which, exports to China accounted for 99.4% of the total mix. Natural rubber and synthetic rubber exports of the country, with 919.78 thousand tons, worth 1.51 billion USD, up 9.1% in volume and 37.3% in value over the same period last year. 2020.

Source: Calculation from the data of the General Department of Vietnam Customs

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Thanks to the high export price of rubber, rubber companies have also recorded improved profit margins, strong profit growth in the third quarter, and is expected to increase strongly in the fourth quarter of this year. Typically, Tan Bien Rubber Joint Stock Company (Code: RTB) recorded third-quarter revenue of 265 billion VND, up 16%, profit after tax increased 3.5 times to 159 billion VND. Or at  Dak Lak Rubber (Code: DRG)  achieved revenue of 384 billion dongs, up 47%; after-tax profit is 31 billion dongs, 3 times higher than the third quarter of 2020. Hoa Binh Rubber Joint Stock Company (Code: HRC) in 9 months, the business recorded VND 126 billion, implementing 72% of the plan and pre-tax profit reached VND 2.8 billion, completing 282%. plan. Phuoc Hoa Rubber Joint Stock Company (Code: PHR) in the first 9 months of 2021 recorded a net profit from business activities of VND 119 billion, an increase of 3.5 times compared to the same period in 2020. 

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