Rubber export to hit record high of $2.2Bln

Vietnam is expected to see record rubber sales of US$2.2 billion this year as a steep increase in global demand had pushed up rubber prices, according to the Vietnam Rubber Association.

The association has revised up its forecast of this year’s export to US$2.2 billion after the latex price on the local market has exceeded VND90 million a ton, in line with the unprecedented global price of US$4,712 on Tokyo commodity exchange TOCOM this week.

This is the second time the association has adjusted up its forecast, having seen rubber export sales hit US$1.8 billion in the January-November period.

Tran Thi Thuy Hoa, secretary general of the rubber association, said rubber supply is running short on both local and international markets. A statement by the Association of Natural Rubber Producing Countries, which is responsible for 92% of global output, said heavy rain in leading rubber producers makes global output in November-December 2010 fall by 4.5% to 1.75 million tons.

The local rubber association in the middle of this year put Vietnam’s production at 780,000 tons.

Markets including the U.S., China, Taiwan, and Japan after the global economic crisis have increased importing not only latex but also finished rubber products from Vietnam.

“Big suppliers like the Vietnam Rubber Group are pushing up export as committed in their contracts with foreign buyers,” Hoa said. Meanwhile, local manufacturers have to cope with thin supply and high prices.

Ha Phuoc Loc, deputy director of Da Nang Rubber Company that manufactures rubber tires, complained about the scare materials. “We’ve knocked the door of many suppliers but they’ve refused to sell though I am willing to buy at more than VND91 million per ton,” he told the Daily on the phone.

Rubber prices on TOCOM this week rose amid concern that supply from Thailand, the largest exporter, may be tightened further on a seasonal output decline. According to Reuters, May-delivery rubber on TOCOM advanced to 396 yen per kg or US$4,712 a ton after climbing to a 30-year high of 383 yen on November 11.-VNS

Tags: Vietnam rubber exports