First half of 2023: Rubber exports bring in 1.05 billion USD

Rubber exports in the first 5 months of 2023 decreased by 23.7% in value. Rubber export prices still lack positive signals.

The Import-Export Department (Ministry of Industry and Trade) cited data from the General Department of Customs, saying that it is estimated that Vietnam's rubber exports in June 2023 reached about 180 thousand tons, worth 239 million USD, up 53.7% in volume and 51% in value compared to May 2023, but down 4.2% in volume and 23% in value compared to June 2022.

The average rubber export price is at 1,327 USD/ton, down 1.8% compared to May 2023 and down 19.6% compared to June 2022.

Nửa đầu năm 2023: Xuất khẩu cao su mang về 1,05 tỷ USD

First half of 2023: Rubber exports bring in 1.05 billion USD

In the first 6 months of 2023, rubber exports reached about 766 thousand tons, worth 1.05 billion USD, down 2.6% in volume and 22.9% in value compared to the same period in 2022.

In the first 5 months of 2023, Vietnam's rubber export types were mainly natural rubber and synthetic rubber blends (HS 400280), SVR 10, SVR 3L, RSS3, Latex, SVR CV60, SVR 20...

Of which, the mixture of natural rubber and synthetic rubber (HS 400280) is still the most exported item, accounting for 66.93% of the total rubber export volume of the country, with 392.45 thousand tons, worth 538.65 million USD, up 11.5% in volume, but down 11.6% in value compared to the same period in 2022.

Of which, exports to China accounted for 99.82% of the total volume of natural rubber and synthetic rubber exports, with 391.74 thousand tons, worth 357.1 million USD, up 11.7% in volume, but down 11.5% in value compared to the same period in 2022.

In the first 5 months of 2023, most types of rubber exports decreased in both volume and value compared to the same period in 2022. However, the export of some rubber types still grew well compared to the same period in 2022, notably: RSS1, recycled rubber, SVR CV40, SVR 5..., but these types only account for a small proportion of Vietnam's total rubber exports.

In the domestic market, in June 2023, domestic raw rubber latex prices fluctuated slightly, with prices tending to decrease in the last few sessions of the month, fluctuating around 220-277 VND/TSC.

In Binh Phuoc, the price of raw rubber latex purchased by Phu Rieng Rubber Company is from 257 - 277 VND/TSC, down 3 VND/TSC compared to the end of last month. In Binh Duong, the price of raw rubber latex purchased by Phuoc Hoa Rubber Company fluctuates at 268 - 270 VND/TSC, down 10 VND/TSC compared to the end of last month. The price of rubber latex in Gia Lai is purchased by Mang Yang Rubber Company at 220 - 230 VND/TSC, down 5 VND/TSC compared to the end of May 2023.

In the world market, in June 2023, rubber prices on key Asian exchanges fluctuated strongly, prices fell sharply in the last few sessions of the month due to reduced profits at Chinese rubber companies, traders waiting for new stimulus measures from China to strengthen the country's slowing economic recovery.

According to the May 2023 report of the Association of Natural Rubber Producing Countries (ANRPC), thanks to the resumption of tapping activities after the suspension of tapping during the leaf-changing season, global natural rubber output in May 2023 is estimated at 1.006 million tons, up 12.3% compared to April 2023 and up 0.3% compared to May 2022; while global natural rubber demand is recovering at a faster pace, estimated to increase by 3.5% over the same period in 2022, to 1.272 million tons in May 2023.

Thus, the world market had a shortage of 266 thousand tons of natural rubber in May 2023. ANRPC believes that, due to the supply shortage, the fundamentals of the natural rubber market are relatively positive.

However, persistent geopolitical tensions between Russia and Ukraine, high borrowing costs, a K-shaped recovery in both major consumers China and India, and falling Brent crude oil prices have overshadowed the support from market fundamentals.

According to the Vietnam Rubber Group, although China has opened its doors, consumption is still slow. Most rubber products are for consumption, only a small amount is used to produce truck tires.

With the current world economic situation, high inflation has caused people to tighten their consumption, leading to the demand for rubber still not being high. Consumption is still weak, it is forecasted that from now until the end of 2023, the export price of rubber will hardly recover. Vietnam Rubber Group expects that from 2024 onwards, it will be more stable, and the demand as well as the price of rubber will increase.

According to industry experts, the world's demand for natural rubber is still on an upward trend and the gap between supply and demand is a great opportunity for Vietnam to increase natural rubber output and increase export turnover.

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