Export rubber prices have climbed by around 20% in the past three weeks, a sales executive at the Vietnam Rubber Corporation (Geruco) said. Grade 3L was being quoted being at about US$660 per tonne, f.o.b. HCM City, March 26 compared with US$520-530 per tonne early this month.
The price rise is partly attributed to an agreement reached late last year to reduce rubber output by Malaysia, Thailand and Indonesia, which are responsible for over 70% of the world’s total output, and cut their rubber exports by 10%, the official said. The other reason is the drought affecting many rubber-growing countries including Vietnam. “Many of our rubber areas would have had latex if the drought hadn’t continued,” he said.
In addition, the Japanese and American economies are recovering, so more rubber is needed thus pushing up prices, analysts say.