Rubber exports on a roll in first quarter
Rubber exports on a roll in first quarter
The high demand of automobile manufactures as well as increasing purchases by other countries have pushed up the price of Vietnamese rubber exports, making prospects rosy for domestic companies.
The World Bank forecasts that rubber prices will increase by 3 per cent this year
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In the first quarter, DakLak Rubber Investment JSC (DRI) recorded more than VND16 billion ($695,650) in net profit thanks to increased consumption volume and high rubber prices. DRI sold 3,126 tonnes of rubber latex with an average selling price of $1,693 a tonne, up 212.4 and 136.8 per cent over the same period last year. Revenue for the period reached VND125 billion (5.43 million), higher than the VND53 billion ($2.3 million) in the previous first quarter.
Other companies also reported rising export prices. Typically, the average price of a ton of rubber in the first two months of Dong Phu Rubber JSC (DPR) reached VND46 million ($2,000), up 25.5 per cent on-year, according to a report by BIDV Securities Company (BSC).
Additionally, Tay Ninh Rubber JSC (TRC) reported an average price of VND46.3 million ($2013) a tonne, an increase of 35 per cent compared to the average price of 2020.
Data from the Agency of Foreign Trade showed that accumulated in the first three months, rubber exports reached about 435,000 tonnes, worth $722 million, up 89.7 per cent in volume and 116.6 per cent in value over the same period of 2020.
Particularly in March, Vietnam's rubber export reached about 140,000 tonnes, worth $243 million, up 33.6 per cent in volume and 40.3 per cent in value compared to February.
Compared to the same period last year, rubber exports in March increased by 130.7 per cent in volume and 178.5 per cent in value.
According to MB Securities, Asian rubber prices are expected to rebound due to global economic recovery. In particular, the World Bank forecasts that rubber prices will increase by 3 per cent this year.
During the period from March 15 to April 15, rubber prices witnessed a significant decline in the context of the number of COVID-19 infections continuing to increase globally.
However, in the long term, with the prospect of global economic recovery as well as concerns about the shortage of rubber supply in Thailand, Indonesia, and Sri Lanka, rubber prices are expected to rise again.
In addition, China's domestic rubber supply has plummeted as rubber plantations were strongly affected by droughts and floods in 2020.
Another reason for this trend is the fact that car manufacturers are facing a potential shortage of rubber, the main material used to produce tires and many other important car parts.
The Association of Natural Rubber Producing Countries (ANRPC) said that natural rubber (NR) supply is estimated to recover at 1.3 per cent on-year to 910,000 tonnes in March, while global consumption is projected at 1.234 million tonnes, up 7.4 per cent during the same reference period.
Favourable market fundamentals in the NR sector have supported the price growth in the futures and physical markets, except the Shanghai Futures Exchange.
