Restricted Rubber Exports to China Pulls Prices up

Vietnamese rubber enterprises have gained initiative in reducing rubber exports to neighboring China via Mong Cai border gate since early August after suffering a sharp decrease in the export prices during July.

 

The restriction has pulled rubber prices up slightly compared to July, local traders said. In early August, price of SVR 3L reached US$2,306 per ton while SVR 10 and SVR 20 were selling at US$2,068 and $2,056 per ton. The price of latex was some $1,767 per ton.

 

The export prices of Vietnamese rubber plummeted by around $250-375 per ton in the second week of July after reaching record levels in late June as the Chinese government strengthened control over cross-border rubber imports with small quantity.

 

In late June, the price of SVR 3L, which accounted for 46-49 per cent of total shipment volume in the first half of 2006, stood at $2,512 per ton. Meanwhile, SVR 10 and latex, making up 17-18 per cent and 13-17 per cent, were sold at $2,308 per ton and $1,179 per ton, respectively.

 

However, some Vietnamese enterprises are still transporting rubber to China, but with a small volume of around 100-150 tons per day, much lower than the shipment volume of some 1,300 tons daily early this year.