Vietnam’s rubber market remains gloomy

Vietnam’s rubber market last week remained gloomy as exporting to China faced many difficulties along with sharp reduction in global rubber prices, the Saigon Economic Times reported.
Compared with November 11, the price of SVR CV last week declined by 600 dong per kilogram while that of SVRL slumped 800 dong per kg.

On November 17, the purchase and selling prices of SVR CV stayed at 74,600 dong per kg and 75,400 dong per kg. Meanwhile, SVR 10 was purchased at 68,300 dong per kg, rising 4,800 dong or 7.56% against 63,500 dong/kg recorded on November 11.

On average, the rubber latex price in Dong Nai province stood at 18,000 dong per kg, decreasing 4,000 dong/kg. But that in Binh Phuoc province surged 1,120 dong to 25,120 dong per kg.

Border trading last week was very weak because Vietnamese rubber businesses were not interested in current prices.

Demand of Chinese partners is very high, traders would like to import large volume but Chinese authorities did not transactions at prices of more than 23,000 Yuan per ton.

If Chinese authorities really want to put natural rubber into the item of official export import transaction, they should offer appropriate import tariffs for which traders can gain profits, and the market will be activated.

Last week the export of natural rubber via Mong Cai border gate kept going down. SVR3L price (excluding tariffs) in Mong Cai-Dong Kinh border gate was offered at 22,100 Yuan per ton on November 17. The supply remained plentiful whereas transactions were very small.

Tags: Vietnam Rubber, Vietnam rubber sector

Posted by VBN on Nov 23 2011. Filed under Rubber & Plastic. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry