First half of year hit by plunging rubber exports

VOV.VN - Vietnam exported 456,000 tonnes of rubber during the first half of the year worth a total of US$606 million, down 25.7% in volume and 27.9% in value compared to the same period last year, according to the Ministry of Industry and Trade.

first half of year hit by plunging rubber exports  hinh 0
In June alone, the nation shipped 110,000 tonnes of rubber abroad with a value of US$130 million, marking an increase of 46.9% in volume and 44.5% in value from the previous month, despite representing a drop of 9.8% in volume and 25% in value from June, 2019.

Moreover, the average export price endured a year-on-year fall of 16.9% to US$1,182 per tonne, causing the average price during the six-month period to drop by 2.9% to US$1,330 per tonne.

According to figures released by the General Department of Vietnam Customs, rubber exports during the course of the five-month period plummeted in comparison to last year’s corresponding period.

Simultaneously, the price of domestic rubber latex in June remained at a low level and is predicted to continue experiencing a downward trend. 

This comes after the Association of Natural Rubber Producing Countries stated that global demand for natural rubber is anticipated to undergo a downward trajectory during the remainder of the year, with expected consumption of rubber volume predicted to reach 12.84 million tonnes due to the novel coronavirus causing disruption in the rubber supply chain.

Although the second quarter of the year typically marks the start of the rubber harvest season in Southeast Asian countries, the demand for natural rubber from major consumers such as China, the United States, and the EU remains low.

In addition, plunges in oil prices are forecast to exert pressure onto the prices of natural rubber, with the country is forecast to endure a drop in rubber price in the process.

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