A report of the Department of Agro-processing and Market Development (Ministry of Agriculture and Rural Development) stated that rubber export volume in April 2020 is estimated at 40,000 tons with a value of 52 million USD, cumulative rubber export in the first 4 months in 2020, it will reach 267,000 tons and 383 million USD, down 35.4% in volume and 31% in value over the same period in 2019.
China, India, and South Korea continue to be the three largest rubber consuming markets of Vietnam in the first three months of 2020, accounting for 61.3%, 6.5% and 3.7% of market share respectively. %.
In the domestic market, the price of rubber material has been stable in April 2020. Latex price in Dong Nai remained unchanged at VND 12,000 / kg. Rubber trees in Binh Phuoc are still in the process of changing leaves, temporarily stopping tapping. Domestic rubber market is still quiet.
Meanwhile, in the world market, the demand for rubber is low because the COVID-19 pandemic makes the automobile industry face many difficulties and the market is worried about the world economic recession.
Toyota Motor Corporation will reduce its production of finished vehicles by 40% in Japan in May 2020 due to a reduction in global demand due to the COVID-19 pandemic.
In March 2020, car sales in China decreased by 43.3% compared to March 2019. Goodyear Tire & Rubber GT.O Group tire sales in the first quarter of 2020 decreased by 18% and sales decreased by about 17%.
Most factories in America, Europe and some tire factories in Asia-Pacific are still closed. In the first quarter of 2020, although global demand for rubber is low, the market is supported by reduced output due to rubber trees in the deciduous season.
It is expected that the second quarter of 2020 will be the beginning of the rubber harvest season in Southeast Asian countries, the demand for natural rubber from major consumers such as China, the US, and Europe will be low and crude oil prices will be low. A record drop will put pressure on natural rubber prices.
Besides, according to the Association of Natural Rubber Producing Countries (ARNPC), by 2020, the total mature rubber area of ARNPC countries is expected to expand by 317,000 hectares, making forecasts of rubber supply. world natural content increased by 3.8% to 14.2 million tons. Meanwhile demand is only at 14 million tons, up 2.7%.
The Department of Agricultural Product Processing and Market Development believes that in the short term, Vietnam's rubber exports will face many difficulties due to the worldwide situation of COVID-19 epidemic, concerns about the recession. The global economy is taking place, reducing the opportunity of expanding rubber market of Vietnam.
In addition, due to the decline in the car manufacturing industry, the slowdown in tire production has led to a sharp decline in rubber demand along with falling oil prices, which indirectly affected high demand. su of the world.
According to Economy and Consumption
