Rubber price hits record high

Natural rubber price on the local market has hit a record high of VND39 million a ton, a three-fold increase over the same period last year, and the uptrend is forecasted to continue in the second quarter of this year.

The high price is attributed to scant supply both locally and globally as unfavorable weather conditions have impacted productivity.

On the global market, information about thin supply for the Indian tire-making industry that will need more than 190,000 tons of rubber this year also supports the rise in rubber prices.

The high price has resulted in swollen profits for many local rubber companies.

Pre-tax profits in the first quarter of the year at Thong Nhat Rubber Company reached VND52 billion, up 263% year-on-year and beating the company’s whole-year profit target of VND50 billion. Similarly, Dong Phu Rubber Company gained an after-tax first quarter profit of VND152 billion, up 314% from last year.

According to Vietnam Customs, the country earned US$806 million from rubber exports between January 1 and April 15, up 108% in value from the same period last year. – SaigonTimes

Tags: Vietnam Rubber, Vietnam rubber prices