29.7 C
New York
Sunday, May 22, 2022

Vietnam’s rubber production greatly increased the price war imminent

Hanoi, April 9, according to the message, after several years of strong expansion, deforestation and land acquisitions in neighboring countries to establish rubber plantations, Vietnam is the harvest labor outcomes: significant increase in rubber production, making it the world’s third largest rubber producer.

2014 will begin later in the new rubber farmers harvested timber plantations of rubber trees, but because of global oversupply and limited storage capacity, the Vietnamese production is likely to continue to surge in rubber prices have been low for several years at the time of the trigger price war.

Despite the appeal not to sell rubber industry, but because the government is unlikely to intervene to support rubber prices, Vietnam rubber farmers have no choice except to sell, which makes the other major supplier of rubber in Thailand, Indonesia and Malaysia nervous.

Indonesian Rubber Association (Indonesian Rubber Association) North Sumatra branch Executive Director Edy Irwansyah said, “Of course we would be concerned if a mismatch between supply and demand, it will certainly weigh on prices.”

2001 rubber prices from less than $ 0.50 per ton, 30-year lows, prompting Vietnam main crop diversification, low-interest loans to farmers for planting rubber trees.

International Rubber Study Group (IRSG), said this year’s output is expected to be close to 100 million tons.

According to Macquarie’s data, although in 2014 the global demand for natural rubber is expected to grow by 4%, but the market is expected there will be surplus of 373,000 tons this year, the surplus for the fourth consecutive year presented.

China’s economic growth and demand concerns, making the Singapore Commodity Exchange tire grade rubber prices fell below $ 2 per kg, the lowest since mid-2009.

Tire industry accounted for approximately 60% of the global rubber consumption proportion.

Affected by similar concerns, Tokyo Commodity Exchange (TOCOM) global indicators rubber prices are hovering near 18-month lows.

Translated by Google Translator from http://news.cria.org.cn/5/20142.html

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,298FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles