Latex prices rise, Vietnamese rubber companies benefit

According to a foreign media report on November 23, since the beginning of the year, with the soaring price of latex, the performance of Vietnamese latex companies has improved
.


According to the Ministry of Agriculture and Rural Development (Ministry of Agriculture and Rural Development), in the first 10 months of this year, the volume of rubber products in Vietnam increased by 13.
9% from the same period last year, and their value increased by 46.
5%
.
In the first 10 months, the average export price of many rubber products hit US$1,680 per ton, an increase of 4.
1% over the same period last year
.


Vietnam’s ACBS Securities Company stated that the increase in rubber demand is due to the global economic recovery after the pandemic and the increase in vaccination rates
.
The global economic recovery will stimulate transportation activities in the civilian and industrial sectors, creating a growing demand for tires, which are a key driver of rubber demand
.


Since the beginning of this year, high rubber prices have had a strong impact on the profits of the rubber industry
.
In the first nine months of this year, the VietNam Rubber Group achieved net income of VND 16.
7 trillion (USD 726 million) and profit after tax of VND 3.
8 trillion, an increase of 37.
7% and 87.
7% respectively over the same period last year
.


  The company said that the positive business performance comes from the positive response measures taken in accordance with the new normal of production
.
At the same time, the sales price of rubber products has risen and stabilized; the sales prices of wood products and rubber industrial products have also increased, which has significantly increased the gross profit and after-tax profits of most of the group’s investors compared with the same period last year
.


  According to a report by Dong Phu Rubber JSC, a Vietnamese rubber company, the company's revenue reached 727 billion VND in the first nine months of this year, an increase of 15% year-on-year
.


  The ACBS report said that in the near future, the natural rubber industry may experience a supply shortage, but due to a shortage of electronic chips, the production of automobiles will slow down, and prices may fall, even though the demand for automobiles in China is rising
.
It is predicted that the average price of rubber this year will be 31% higher than last year
.


  According to statistics from the General Administration of Customs of Vietnam, China is Vietnam's most important rubber export market
.
China accounts for 70% of Vietnam's total rubber exports, totaling more than 900,000 tons in the first nine months of this year
.


  ACBS stated that although Vietnam is the world's fourth largest rubber exporter, the country is still under pressure to meet global natural rubber product quality standards
.
Vietnamese rubber companies still need to make more efforts to meet higher standards and expand their export markets
.