Natural rubber export prices are on a rising trend since the beginningof May following concerted efforts from the Ministry of Agriculture andRural Development and the Vietnam Rubber Association (VRA), reported theThoi bao Kinh Te Vietnam (Vietnam Economic Times).
In the first half of May, natural rubber export prices increased to1,655 USD per tonne, up 73 USD or 4.6 percent, from the average price inApril, and the increasing trend continues, reaching 1,790 USD per tonneon June 12.
It is forecast that prices willmaintain their momentum throughout June due to boosted imports fromChinese partners for stockpile.
Vietnamesenatural rubber export to China has benefited from the " most favourednation " ( MFN ) status with a 20 percent import tariff, compared to 40percent for those which do not have the MFN
According to Dr. Tran Thi Thuy Hoa, Head of the VRA Office, rubberprices will be fluctuating between 1,500 and 2,500 USD per tonne andwill remain in that range until 2020 due to high stock.
In addition, natural rubber export prices are under pressure as thefall of crude oil prices make synthetic rubber cheaper, Hoa added.
Hoa said the rubber sector needs to increase land use efficiency,reduce both outputs and production costs while replacing aging treeswhich produce less latex.
Hoa advised theindustry to shift according to market demands, ensure the quality ofnatural rubber, expand markets, build brands, develop the processingindustry and manage planning.
The NationalAgro-Forestry-Fisheries Quality Assurance Department under the Ministryof Agriculture and Rural Development has asked rubber processors tostrictly supervise the process of collection, transportation,preservation and quality control to ensure product quality.
The department will coordinate with the VRA to develop and publishquality standards for raw latex and finished products at processingfactories.
Vietnam’s rubber exports in the firstfive months reached 330,000 tonnes with 475 million USD in revenue, up30.1 percent in volume but down 2.9 percent in value.
China, India and Malaysia continue to be the main markets for Vietnamese rubber, together accounting for 69.03 percent.-VNA
In the first half of May, natural rubber export prices increased to1,655 USD per tonne, up 73 USD or 4.6 percent, from the average price inApril, and the increasing trend continues, reaching 1,790 USD per tonneon June 12.
It is forecast that prices willmaintain their momentum throughout June due to boosted imports fromChinese partners for stockpile.
Vietnamesenatural rubber export to China has benefited from the " most favourednation " ( MFN ) status with a 20 percent import tariff, compared to 40percent for those which do not have the MFN
According to Dr. Tran Thi Thuy Hoa, Head of the VRA Office, rubberprices will be fluctuating between 1,500 and 2,500 USD per tonne andwill remain in that range until 2020 due to high stock.
In addition, natural rubber export prices are under pressure as thefall of crude oil prices make synthetic rubber cheaper, Hoa added.
Hoa said the rubber sector needs to increase land use efficiency,reduce both outputs and production costs while replacing aging treeswhich produce less latex.
Hoa advised theindustry to shift according to market demands, ensure the quality ofnatural rubber, expand markets, build brands, develop the processingindustry and manage planning.
The NationalAgro-Forestry-Fisheries Quality Assurance Department under the Ministryof Agriculture and Rural Development has asked rubber processors tostrictly supervise the process of collection, transportation,preservation and quality control to ensure product quality.
The department will coordinate with the VRA to develop and publishquality standards for raw latex and finished products at processingfactories.
Vietnam’s rubber exports in the firstfive months reached 330,000 tonnes with 475 million USD in revenue, up30.1 percent in volume but down 2.9 percent in value.
China, India and Malaysia continue to be the main markets for Vietnamese rubber, together accounting for 69.03 percent.-VNA
