Vinachem hikes rubber product prices

30-Mar-2006 Intellasia | 29/Mar/2006 Saigon Times Daily page 3 | 7:37 AM Print This Post

Member companies of the Vietnam National Chemical Corp, or Vinachem, have raised the selling prices of all kinds of rubber tires by up to 10% in comparison with those in late last year.
According to Vinachem, this results from increasing prices of natural rubber which have currently exceeded US$2,000 per tonne, with some kinds even reaching US$2,200perton.
Vinachem has three member companies manufacturing tires, including the
Southern Rubber Industry Co (Casumina), Sao Vang Rubber Co and Da Nang Rubber Co The first two have already raised selling prices by 10%, and the last one confirmed that it would also increase prices before long.
Meanwhile, the Vietnam general Rubber Corp (Geruco) said its exported rubber price continued to go up to US$2,000-2,050 a tonne, increasing by US$60-100 from this month. This is because demand has much outpaced supply on the world market.
Vietnam earned US$787 million last year from exporting 574,000 tonnes of rubber, up 12% in quantity and 32% in value. This year, it targets US$838 million for 600,000 tonnes of rubber exported.
As Geruco is bound to execute big supply contracts already signed with foreign importers, there are occasional shortages of raw rubber for local production, prompting several local manufacturers to import the material even when prices go up.
Figures from the trade ministry showed that Vietnam paid US$213 million last year to import 140,000 tonnes of rubber.

 


Category: Business

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