Vietnam's Rubber Exports Remain Tight

- May 31, 2019-

Demand for natural rubber is suffering because of a slowdown in global rubber sales growth this year and the impact of trade frictions between the us and China.While the Numbers are good, Vietnamese companies should try to find new markets outside China and avoid over-reliance on the Chinese market, market participants said.

Preliminary statistics from Vietnam customs bureau show that in February this year, Vietnam exported 79,500 tons of rubber, or 105 million us dollars, down 49.4 percent and 47.3 percent respectively.In the first two months of 2019, rubber exports reached 2.3708 million tons, with an export volume of us $305.44 million, up 27.3% and 11.5% respectively.

In the first two months of this year, Vietnam's rubber exports to China, India and South Korea showed significant growth, while rubber exports to other markets declined.In February, China was still the largest rubber export market of Vietnam, with exports of 48,992 tons and exports of $64.21 million, which increased by 94.1% and 73.1% respectively compared with the same period last year, but decreased significantly month-on-month.In the first two months of 2019, Vietnam exported 153,190 tons of rubber to China, worth 196 million us dollars, up 53.7 percent and 35 percent respectively.

Analysts believe that the future time rubber export prospects are still not optimistic.Futures prices for rubber products rose in August as trade talks and global growth were volatile, but the increase was contained.In the domestic market of Vietnam, the latex prices in the main rubber producing provinces decreased slightly in March compared with February.