Rubber exports to the United States are facing competition from many markets.

Rubber exports reach 1.87 million tons in 11 months

The latest issue of the Agricultural - Forestry - Fishery Market Bulletin of the Import-Export Department (Ministry of Industry and Trade) said that in the first 11 months of 2023, Vietnam's rubber exports reached 1.87 million tons, worth 2.51 billion USD, up 0.01% in volume, but down 14.7% in value compared to the same period in 2022. The average export price of rubber reached 1,344 USD/ton, down 14.7% compared to the same period in 2022.

Notably, in the past 11 months, Vietnam's main exported rubber types were natural rubber and synthetic rubber blends (HS 400280), Latex, SVR 10, SVR 3L, SVR CV60, RSS3, SVR 20... Of which, natural rubber and synthetic rubber blends (HS 400280) were still the most exported items, accounting for 67.54% in volume and 68.87% in value of the country's total rubber exports.

China is the largest importer of natural rubber and synthetic rubber mixtures, accounting for 99.79% in volume and 99.65% in value of the total natural rubber and synthetic rubber mixtures of the country.

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Rubber export turnover is unlikely to reach the target of 3.5 billion USD as planned, but will only stop at 3 billion USD. Illustrative photo

However, according to the Import-Export Department, in the first 11 months of 2023, many types of rubber exports still decreased in both volume and value compared to the same period in 2022. However, the export of some types still grew well in volume compared to the same period in 2022, such as: SVR CV60, recycled rubber, RSS1, RSS4, SVR CV40...

Regarding information on rubber export prices, the Import-Export Department said that in the first 11 months of 2023, the average export prices of all rubber types decreased sharply compared to the same period in 2022, of which the sharpest decrease was Skim block down 24.7%; mixed rubber (HS: 4005) down 24.6%; RSS3 down 18.8%; Latex down 17.8%; SVR 10 down 17.6%; SVR CV50 down 16.3%; RSS1 down 15.6%...

In general, in the first 11 months of 2023, rubber exports to most markets still decreased compared to the same period last year, especially large markets such as: India, the United States, Germany, Taiwan, Turkey, Sri Lanka, Russia, Indonesia, Spain... On the contrary, rubber exports to some markets still grew well in volume compared to the same period in 2022 such as: China, Korea, the Netherlands, Singapore, the Czech Republic...

Vietnamese rubber under pressure from many markets

According to statistics from the US International Trade Commission, in the first 10 months of 2023, the US imported 1.43 million tons of rubber under HS codes: 4001, 4002, 4003, 4005 with a value of 2.93 billion USD, down 17.7% in volume and down 27.6% in value compared to the same period in 2022.

Of which, Indonesia, Thailand, Canada, South Korea and Ivory Coast are the five largest markets supplying rubber to the United States in the first 10 months of 2023. Except for Canada, the amount of rubber imported by the United States from these markets all decreased compared to the same period in 2022.

Data from the General Department of Vietnam Customs also showed that in the first 10 months of 2023, Vietnam was the 13th largest rubber supplier to the United States with 20.37 thousand tons, worth 28.99 million USD, down 29.4% in volume and 43.1% in value compared to the same period in 2022. Vietnam's rubber market share in the total rubber imports of the United States accounted for 1.42%, down from 1.66% in the first 10 months of 2022.

“In the first 10 months of 2023, Vietnam's rubber exports to the United States faced competition from many markets, especially from Indonesia (accounting for 25.13% of total US rubber imports) and Thailand (accounting for 14.28% of total US rubber imports)” - the Import-Export Department informed.

Also according to the Import-Export Department, in the first 10 months of 2023, the US imported 50.66% of natural rubber; synthetic rubber accounted for 32.37% of the total imported rubber. The rest was recycled rubber and mixed rubber.

In the first 10 months of 2023, the United States imported 724.94 thousand tons of natural rubber (HS 4001), worth 1.14 billion USD, down 21.2% in volume and 36.8% in value compared to the same period in 2022. Indonesia, Thailand, Ivory Coast, Liberia and Vietnam were the five largest markets supplying natural rubber to the United States in the first 10 months of 2023.

“ Vietnam is the 5th largest natural rubber supplier to the United States, with 20.36 thousand tons, worth 28.87 million USD, down 29.3% in volume and 42.9% in value compared to the same period in 2022” - the Import-Export Department informed and said that Vietnam's natural rubber market share in the total import volume of the United States accounted for 2.81%, down from 3.13% in the first 10 months of 2022.

Given the clear advantages and needs, the Vietnam Rubber Association recommends that rubber exporting enterprises need to have a strategy to increase the proportion of processed rubber rather than raw rubber to increase export value. However, it is forecasted that rubber export turnover will hardly reach the target of 3.5 billion USD as planned at the beginning of the year, but will only stop at 3 billion USD.

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