Rubber market bouncing back up
Rubber market bouncing back up
Cambodia exported more than 48,000 tonnes of rubber to international markets in the first two months of the year, an increase of six per cent compared to the same period last year, netting more than $76 million, according to data released by the Ministry of Agriculture, Forestry and Fishery’s General Directorate of Rubber.
The directorate said the total export in January and February was 48,509 tonnes, raking in $76.88 million. The average price of rubber during this period was $1,585 per tonnes, indicating a minor decrease over the same period last year.
During the same period, 808 cubic metres of rubber wood worth $355,946 was exported, an increase of 66 per cent.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post that in recent years, investment in rubber showed little progress because the price of Cambodian rubber is based entirely on international markets. Cambodia’s data is therefore based entirely on export figures. These two factors mean rubber has not been an attractive investment.
He said, however, that the establishment of a tyre factory by Cart Tire Co, Ltd – for export to international markets in 2021 – has led to a gradual rise in investment.
“We expect that new investment in vehicle tyres and the opening of the car manufacturing market segment in Cambodia will increase demand for rubber, with a corresponding increase in the price of raw materials,” he said.
According to the directorate, the Kingdom has 404,044ha dedicated to rubber production, with 310,193ha of productive ground and 93,851ha to maintain the plantations.
Agriculture minister Veng Sakhon said during his ministry’s annual meeting on March 23 that Cambodia earned more than $610 million from the export of rubber and rubber wood to international markets.
