Rubber prices set new records

According to the Vietnam Trade Information Centre (VTIC), prices have soared to new heights in the Asian market, as speculators tend purchase as much rubber as possible for fear of short supply. The International Rubber Study Group (IRSG) predicted that natural rubber output would soar rapidly this year; however, demand for imports would increase faster.

The global output will rise by 3.23% in 2006 to 8.96mil tonnes and will see further by 6.25% to 9.52mil tonnes in 2007. Meanwhile, demand for natural and synthetic rubber will increase 3.2-3.5% to 21.32mil tonnes this year, and will further increase by 6.24% to 22.65mil tonnes in 2007. Consumption is expected to rise sharply in Asia, India, Republic of Korea, Japan, and Russia.

Developments in the US economy, and the recovered Japanese economy, will surely lead to higher demand for tyres and other rubber products. Meanwhile, supply from Thailand, Indonesia and Malaysia has decreased from 6.23mil tonnes in 2004, to 6.15mil tonnes in 2005 due to droughts and floods.

Rice prices on the rise

Prices are soaring in both Thailand’s and Vietnam’s domestic markets, pushing export rice prices up.

Thailand has received large orders from Iran, which has bought 400,000 tonnes so far this year, and plans to buy another 300,000 tonnes.

Vietnam’s rice prices are $40-50/tonne cheaper than Thailand’s, and the country is filling orders from the Philippines, Africa and Cuba.

Coffee price down but demand up

Coffee prices are falling but experts believe that there is no need for concern, as demand is increasing in the international market.

In the first half of May, coffee prices slightly decreased as collectives sold products out, while processors limited purchases. Supply is now abundant as the biggest coffee producers begin harvesting.

However, the prices will rise again as the demand is increasing, especially from Eastern Europe and Asia, where the average income per capita is increasing, leading to the changes in lifestyle.

Apparel exports soaring sharply

Vietnam is expected to reach apparel export turnover of $400mil in May, with $15mil worth of products exported every day. The high growth of apparel exports will continue in the near future, as producers have many large orders to fill.

Nhat Vy

Source: VietnamNet