AsemconnectVietnam - In the first 6 months of 2023, Vietnam’s rubber exports reached about 766,000 tonnes, worth of 1.05 billion USD, down by 2.6% in volume and by 22.9% in value over the same period of 2022.

According to the General Department of Customs, the Import and Export Department (under the Ministry of Industry and Trade) said that it is estimated that Vietnam's rubber exports in June of 2023 reached about 180,000 tonnes, worth of 239 million USD, an increase of 53.7% in volume and 51% in value compared to May of 2023, but down by 4.2% in volume and by 23% in value compared to June of 2022.
The average export price of rubber was at 1,327 USD/tonne, down by 1.8% compared to May of 2023 and 19.6% lower than June of 2022.
In the first 6 months of 2023, rubber exports reached about 766,000 tonnes, worth of 1.05 billion USD, down by 2.6% in volume and by 22.9% in value over the same period of 2022.
In the first 5 months of 2023, Vietnam's exported rubber products were mainly a mixture of natural and synthetic rubber (HS 400280), SVR 10, SVR 3L, RSS3, Latex, SVR CV60, SVR 20, etc.
In which, the mixture of natural rubber and synthetic rubber (HS 400280) was still the most exported product, accounting for 66.93% of the country's total rubber exports, with 392,450 tonnes, worth of 538.65 million USD, up by 11.5% in volume, but down by 11.6% in value over the same period of 2022.
In which, the exports to China accounted for 99.82% of the total amount of natural rubber and synthetic rubber exports, with 391,740 tonnes, worth of 357.1 million USD, up by 11.7% in volume, but down by 11.5% in value over the same period of 2022.
In the first 5 months of 2023, most types of rubber exports decreased in both volume and value compared to the same period of 2022. However, the exports of some types of rubber still grew well compared to the same period of the same period in 2022, notably RSS1, regenerated rubber, SVR CV40, SVR 5 ..., but these types only accounted for a small proportion of the total export of Vietnam's rubber.
In the domestic market, in June of 2023, the price of domestic rubber material fluctuated slightly, the price tended to decrease in the last few sessions near the end of the month, fluctuating around 220-277 VND/TSC.
In Binh Phuoc, the price of raw rubber latex purchased by Phu Rieng Rubber Company is from 257 to 277 VND/TSC, down 3 VND/TSC compared to the end of last month. In Binh Duong, the purchase price of raw rubber latex of Phuoc Hoa Rubber Company fluctuated at 268-270 VND/TSC, down 10 VND/TSC compared to the end of last month. Rubber latex price in Gia Lai was purchased by Mang Yang Rubber Company at 220-230 VND/TSC, down by 5 VND/TSC compared to the end of May of 2023.
In the world market, in June 2023, rubber prices at key Asian exchanges fluctuated strongly, prices dropped sharply in the last few sessions of the month due to the decrease in profits at Chinese rubber companies. Traders await fresh stimulus measures from China to bolster the country's faltering economic recovery.
According to a May of 2023 report of the Association of Natural Rubber Producing Countries (ANRPC), thanks to the resumption of exploitation activities after the cessation of tapping because during the leaf change season, the total production of natural rubber demand in May of 2023 was estimated at 1,006 million tonnes, up by 12.3% compared to April of 2023 and up by 0.3% compared to May of 2022; while global demand for natural rubber recovers at a faster pace of 3.5% year-on-year in 2022, to 1.272 million tonnes in May of 2023.
Thus, the world market had a shortage of 266,000 tonnes of natural rubber in May of 2023. ANRPC believes that, due to the shortage of supply, the fundamentals of the natural rubber market are relatively positive.
However, lingering geopolitical tensions between Russia and Ukraine, high borrowing costs, a K-pattern recovery in both major consuming countries China and India, as well as the decline of Brent crude oil prices has overshadowed the support of fundamentals in the market.
According to the Vietnam Rubber Group, although China has opened up, consumption is still slow. Most of the rubber products are for consumption, only a few are used for the production of truck tires.
With the current world economic situation, high inflation, causing people to tighten their consumption, leading to the demand for rubber is still not high. The rubber consumption is still weak, it is forecasted that from now to the end of 2023, the export rubber prices will be difficult to recover. The Vietnam Rubber Group expects that from 2024 onwards, it will be more stable, the demand as well as the price of rubber will go up.
According to industry experts, the world's natural rubber demand is still in an uptrend and the supply gap is lower than demand is a great opportunity for Vietnam to increase natural rubber output and increase export turnover.
CK
Source: VITIC/congthuong.vn