Rubber Export Prices to Jump in Late June: Analysts

Export prices of Vietnamese rubber will likely soar late this month, following the growing prices of rubber on the world market, which is fueled by record growth of crude oil, analysts predicted.

 

According to the analysts, the world rubber prices will jump as China’s rubber reserves are decreasing, while rains are preventing the country’s latex production. Consecutive rises of crude oil, which hit more than US$138/barrel June 9, encouraging many countries to use natural rubber instead of synthetic rubber to cut off costs, are also backing the rubber prices.

 

Since middle of May, export prices of Vietnamese rubber to China kept rising due to high demands. The rubber is now traded at CNY22,500 (US$3,249) a ton, up by CNY1,200 (US$173.3) from a week earlier. A number of Chinese businesses seeking for Vietnamese rubber is also increasing by 1.5 times compared to middle of last month.

 

In the first five months of this year, Vietnam exported 201,000 tons of rubber worth US$493 million, down 14 per cent in volume but up 15.3 per cent in value against the same period of last year. The country expected to export US$1.5 billion worth of rubber by the year’s end. (VNA)