Rubber exports take a nosedive
(VOV) - Vietnamese rubber exports are forecast at 1 million tonnes with total export value of US$1.8-2 billion for 2014, down 10% in volume and 25-30% in value compared to last year.
The Agro-Forestry Processing and Salt Industry Department (AFPSID) attributes the decline to low consumption and an excess supply in the world market.
AFPSID Director Nguyen Trong Thua predicts rubber prices will continue to drop in the long-run due to a slow recovery of the global rubber market.
Rubber prices in Vietnam are often lower than that in several regional countries like Thailand, Indonesia and Malaysia because many batches of Vietnamese rubber products do not have the requisite quality certificates.
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Most types of exported rubber dropped both in volume and value, including SVR 3L, SVR CV60, Latex and SVR 10.
In the first eight months of this year, rubber exports reached 548,000 tonnes valued at US$989 million, down 9.8% in volume and 31.9% in value compared to last year’s corresponding period.
Although China and Malaysia are Vietnam’s largest rubber consumers, their imports fell considerably this year. In the eight-month period, Vietnamese rubber exports to China decreased 21% in volume and 40% in value and to Malaysia down 13.7% in volume and 40% in value.