The Department of Import and Export (MOIT) forecasts that Vietnam’s rubber exports will continue to rise in the coming months, driven by robust demand from China — the country’s largest rubber export market.
Global Rubber Market Update
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At the Tokyo Commodity Exchange (TOCOM), May 2021 rubber futures settled at 253.0 JPY/kg, down 4.3 JPY from the previous session.
On the Osaka Exchange, June 2021 contracts traded at 254.0 JPY/kg, also down 4.3 JPY, while August 2021 contracts stood at 248.8 JPY/kg, a drop of 7.7 JPY.
At the Shanghai Futures Exchange (SHFE), RSS3 May 2021 futures were priced at 12,980 CNY/ton, down 715 CNY.
June 2021 contracts were at 13,095 CNY/ton (down 500 CNY), and August 2021 at 13,330 CNY/ton (down 400 CNY).
Rubber prices in Japan declined as an official April 2021 survey revealed the sharpest drop in service-sector confidence in a year, weakening demand for industrial commodities such as rubber.
Domestic Rubber Prices in Vietnam
Surveys show that today’s rubber latex prices in Binh Phuoc Province range between 315 – 325 VND per TSC degree.
Specifically:
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Binh Long (Binh Phuoc): 315 – 325 VND/degree
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Phu Rieng (Binh Phuoc): 315 – 325 VND/degree
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Dong Phu (Binh Phuoc): 315 – 325 VND/degree
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Binh Duong Province: 315 – 325 VND/degree
China Remains Vietnam’s Top Rubber Market
China continues to be Vietnam’s most important rubber export destination.
In the first three months of 2021, Vietnam exported 290,160 tons of rubber to China, earning USD 463.07 million — up 103.1% in volume and 128% in value year-on-year.
The average export price reached USD 1,596 per ton, a 12.2% increase compared to the same period in 2020.
Exports of nearly all rubber types to China increased sharply, except for synthetic and reclaimed rubber, whose prices declined slightly.
China’s share in Vietnam’s total rubber export turnover rose from 60.94% in Q1 2020 to 68.64% in Q1 2021.
Export Outlook: Continued Growth Expected
The MOIT forecasts that Vietnam’s rubber exports will maintain strong momentum as Chinese demand surges and prices remain high compared to last year.
China is expected to remain the primary export market thanks to geographical advantages and long-standing trade relations.
Meanwhile, India remains a potential market, but its import demand may stay limited in 2021 due to COVID-19 disruptions.
For other destinations, Vietnam’s current market share remains modest, leaving room for significant growth opportunities for the rubber industry in the coming years.