Supply shortage while demand is forecast to be higher has pushed up rubber prices.
The price of rubber in futures contracts has exceeded 433 Yen/kg, the highest since April 2011, according to data dated October 2 from Investing.
Domestically, rubber prices also follow world trends with a sustained increase.
Announced on October 2, Mang Yang Rubber Company purchased rubber latex in the range of 434 - 438 VND/TSC, higher than last week.
Phu Rieng Rubber Company also raised the purchasing price to about 470 VND/TSC, significantly higher than the level of 400 VND/TSC in early July.
Since the beginning of September, the price of raw rubber latex in provinces and cities has increased compared to the previous month, the Import-Export Department, Ministry of Industry and Trade, stated in a report released a month ago.
According to the Import and Export Department, there are concerns about supply disruptions in key production areas in Southeast Asia due to heavy rainfall from Typhoon Yagi in Northern and Northeast Thailand as well as Vietnam - two high export markets. leading rubber – has pushed rubber prices up.
"The tight supply situation pushes rubber prices up," the Association of Natural Rubber Producing Countries (ANRPC) commented in a report at the end of August.
This organization said that there was a global shortage of 2 million tons of natural rubber in the first 7 months of this year, when demand reached 9 million tons but output reached just over 7 million tons.
Part of the reason comes from the declining interest of rubber farmers, especially in traditional rubber producing countries such as Thailand, Indonesia and Malaysia.
Along with that, adverse climatic conditions and leaf diseases also affect farmers' output.
In the near future, shortages will still occur when ANRPC forecasts supply to increase slowly at 0.4% and demand to increase rapidly at 2.3% over the same period last year.
Global natural rubber consumption is forecast to be higher thanks to the recovery of production in main consuming markets such as China, India, and Thailand this year and next. Especially rubber products such as tires and gloves, according to analysis from Phu Hung Securities Company.
Therefore, ANRPC forecasts that the increasing trend of natural rubber prices will continue to be maintained positively in the period 2024 - 2025.
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