Vietnam's rubber still has a lot of room to export to the United States.

Great potential for Vietnamese rubber in the US market

The latest report from the Import-Export Department ( Ministry of Industry and Trade ) said that in April 2024, the United States was Vietnam's 10th largest rubber export market. Citing statistics from the General Department of Customs, the agency said that in April 2024, Vietnam exported nearly 1,090 tons of rubber to the United States, worth 1.87 million USD, up 0.3% in volume and 17.5% in value compared to April 2023.

In the first 4 months of 2024, Vietnam's rubber exports to the United States reached nearly 7.46 thousand tons, worth 11.7 million USD, up 37.1% in volume and 58.2% in value over the same period in 2023.

Vietnam's rubber still has a lot of room to be exported to the US market. Illustrative photo.

According to the Import-Export Department, rubber exports to the United States have increased again recently, and Vietnam's rubber market share in the United States has gradually improved, but only accounts for a low market share in total US imports. "Vietnam's rubber still has a lot of room to export to the US market. It is forecasted that Vietnam's rubber exports to the United States will be more positive in 2024," the Import-Export Department said.

According to information from the Import-Export Department, in the first 4 months of 2024, Vietnam mainly exported natural rubber to the United States. Of which, the latex type was exported the most, accounting for 31% of the total rubber export volume with 2.31 thousand tons, worth 2.89 million USD, down 7.3% in volume, but up 12.3% in value compared to the same period in 2023. The second type was the SVR 3L type, accounting for 26.54% of the total rubber export volume with 1.98 thousand tons, worth 3.35 million USD, up 106.67% in volume and up 125.7% in value compared to the same period in 2023.

The third most exported variety to the US is SVR CV60 rubber, accounting for 26.42% of the total rubber exported to the US with 1.97 thousand tons, worth 3.35 million USD, down 5% in volume, but up 5.4% in value compared to the same period in 2023.

In addition, in the first 4 months of 2023, the export volume and value of some rubber varieties to the United States also increased sharply compared to the same period in 2023 such as: RSS1, SVR 5; while the export of some varieties such as SVR CV50, RSS3, SVR 10 decreased sharply compared to the same period in 2023.

Regarding export prices, the Import-Export Department also said that in the first 4 months of 2024, the average export prices of all rubber varieties to the United States increased compared to the same period in 2023, of which the strongest increase was RSS1 up 24.1%; Latex up 21.1%; SVR 5 up 16.7%; RSS3 up 11.3%; SVR CV60 up 11%...

According to statistics from the US International Trade Commission, in the first 3 months of 2024, the US imported 443.12 thousand tons of rubber (HS: 4001, 4002, 4003, 4005), worth 893.49 million USD, up 0.2% in volume, but still down 3% in value compared to the same period in 2023. Of which, Indonesia, Thailand, Canada, South Korea and Ivory Coast are the 5 largest markets supplying rubber to the US in the first 3 months of 2024.

Affected by weather, rubber prices increase again

Also according to information from the Import-Export Department, in the 10 days of mid-May 2024, rubber prices on Asian exchanges increased again amid concerns about the weather in Thailand and hopes of improved demand from China.

China's auto sales in April 2024 increased 9.3% year-on-year, according to the China Association of Automobile Manufacturers.

Global natural rubber supplies are expected to increase in the coming months as farmers in major producing countries are expected to restart tapping, but unusual weather conditions and a prolonged summer could impact supplies.

At the Osaka Commodity Exchange (OSE), rubber prices rebounded due to adverse weather in Thailand and a recovery in oil prices. On May 17, 2024, the price of RSS3 rubber for near-term delivery was 320.3 yen/kg (equivalent to 2.06 USD/kg), up 3.7% compared to May 10, 2024 and up 53.3% compared to the same period in 2023.

On the Shanghai SHFE, RSS3 rubber prices are also on an upward trend. On May 17, 2024, the RSS3 rubber futures price for near-term delivery was 14,490 yuan/ton (equivalent to 2.01 USD/kg), up 4.3% from May 10, 2024 and up 20.3% from the same period in 2023.

Regarding inventories, the week ending May 10, 2024, the natural rubber inventory at the Shanghai Stock Exchange reached 216,771 tons, down 330 tons from the previous week; the import volume reached 216,640 tons, up 360 tons from the previous week. The rubber inventory No. 20 reached 141,018 tons, down 2,621 tons; the import volume No. 20 reached 136,078 tons, down 102 tons from the previous week. Meanwhile, the natural rubber inventory at the General Trading Warehouse in Qingdao reached 362,200 tons, down 7,900 tons from the previous week.

In Thailand, RSS3 rubber prices also increased again. On May 17, 2024, RSS3 rubber was offered at 80.33 baht/kg (equivalent to 2.22 USD/kg), up 1.8% compared to May 10, 2024 and up 50.1% compared to the same period in 2023. The Thai Meteorological Department warned of adverse weather conditions, heavy rains and flash floods in the upper reaches of the country from May 17-22, 2024, which could cause crop damage.

Source: https://congthuong.vn/cao-su-viet-nam-con-nhieu-du-dia-de-xuat-khau-sang-hoa-ky-322862.html