Rubber prices may drop to 20 million VND/ ton

Rubber prices are often directly proportional to the price of oil in the world market. Therefore, if oil prices continue to decline, the possibility that rubber  prices could drop to 20 million VND/ ton will happen in the near future.

Rubber farmers are facing many difficulties because of low rubber prices

Vietnam Rubber Association just said that, rubber plantations in Binh Phuoc province are about to begin the period of limiting latex exploitation because rubber trees will defoliate when winter comes. During the first month of 2016, the price of latex 32 degrees/ kg has maintained at a low 5.760 VND/ kg.

The price of rubber finished products in Binh Phuoc, Binh Duong, Tay Ninh province dropped considerably in the first 10 days of January, then recovered in the past week. In particular, SVR 3L rubber decreased from 24,900 VND/ kg to 23,200 VND/ kg and then rose back to 26,400 VND/ kg; SVR10 rubber declined from 24,500 VND/ kg to 22,800 VND/ kg and currently stands at 25,100 VND/ kg. The average export price of SVR 3L rubber reached 1.235 USD/ ton which was unchanged from the average price of Sep. 2015 but fell 338 USD/ton compared to that of Jan. 2015.

According to Rubber Industry Group Vietnam (VGR), if oil prices do not see any increase in the near future, the price of rubber will drop significantly to 20 million/ ton which causes many difficulties for rubber farmers, suppliers in particular and for Vietnam rubber industry in general.

Hung Nguyen

Source: baobinhphuoc.com.vn