Low prices hit rubber exports
By Hong Ngoc - The Saigon Times Daily
HCMC – Local rubber exporters have seen profits falling sharply given a steady decline of rubber prices in recent times.
Prices of SVR3L latex exported to China hovered in the range of 17,500-17,600 Chinese yuan a ton at Mong Cai-Dong Hung border gate on Thursday, dropping by 100 yuan against the previous day and nearly 1,000 yuan versus July 19.
According to the Center for Information and Statistics under the Ministry of Agriculture and Rural Development, material rubber prices in Binh Phuoc Province have been on the wane this month. Natural latex was purchased at VND15,600 per kilo in late June but then fell to VND13,800 early this month.
Meanwhile, semi-processed rubber is quoted at VND20,000 per kilo, down from VND25,000 at the end of June.
Local private traders have sharply scaled down rubber exports following China’s import restrictions. They now account for only 30% of rubber export to China in July, just half the June figure.
Meanwhile, State-owned rubber companies have contributed 70% of rubber export volume at Mong Cai since early this month.
Poor quality of private traders’ products is a reason as they mostly buy latex from private plantations while their processing fails to meet national and regional standards.
Meanwhile, rubber supply has increased again since the start of the rainy season while demand has slumped due to the protracted euro zone debt crisis, which has hit tire producers and other sectors.
China, a major rubber importer of Vietnam, still has high rubber reserves.