Global price slump hits domestic rubber exports
Global price slump hits domestic rubber exports
Viet Nam's rubber exports fell sharply during the first half of 2013, plunging 19.2 per cent in value and 5 per cent in volume against the same period last year, according to the Ministry of Industry and Trade.
Up to the end of June, the country earned US$976 million from exporting over 380,000 tonnes of rubber, as a price slump took its toll on earnings.
In June alone, 79,000 tonnes of rubber were shipped abroad, bringing back $188 million. The average rubber export price was US$2,595 per tonne, down 15.2 per cent from the rate at the same time last year.
The significant fall in export prices was attributed to low demand from international markets, while global output had also risen alongside volumes of stockpiled rubber in China and other major countries.
During the January-June period, China remained Viet Nam's largest rubber importer, accounting for 46 per cent of total volume. However, imports to the country from Viet Nam dropped 30.7 per cent in value and 21.6 per cent in quantity.
Rubber export prices are forecast to fall further in the coming months as rubber output from Thailand – the world's leading supplier – is expected to pick up.
Viet Nam's rubber output spiked to 1.01 million tonnes last year, representing a volume increase of 23.8 per cent from 2011, according to the Viet Nam Rubber Association (VRA).
But despite this production boom, the annual earnings of $2.85 billion were down 12.6 per cent on the previous year due to a drop in value.
Last year, the Vietnamese natural rubber price fell 33 per cent, due to reduced demand from China and the increasing preference for synthetic rubber over natural rubber.
Regardless of the price slump, recent efforts mean Viet Nam has become the 3rd largest exporter of natural rubber in the world, after Thailand and Indonesia.
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