HANOI, Feb 25 (Reuters) – Rubber exports from Vietnam, which overtook Malaysia last year as the world’s third-largest producer, are expected to fall 25.4 percent to an estimated 104,000 tonnes in the first two months of 2014 from a year ago, the agriculture ministry said on Tuesday.
Revenue from rubber exports in the January-February period is likely to drop 43.3 percent from a year ago to $215 million, the ministry said in a monthly report.
Benchmark rubber futures plunged to an 18-month low early this month.
Thailand, Indonesia and Malaysia, which account for more than 70 percent of global natural rubber output, have been examining whether to curb exports, reduce tapping or buy from farmers in a co-ordinated fashion in a bid to support prices.
In 2013, Vietnam’s rubber output rose around 8 percent from the previous year to 950,000 tonnes, making it the world’s third-largest producer after Thailand and Indonesia.
Between 2011 and 2013 Vietnam’s rubber output has risen 20 percent, based on government data, partly because growers use higher-yielding varieties, traders said.
China buys around 60 percent of Vietnam’s rubber exports. Other key buyers included Malaysia, India, the United States and South Korea, according to the agriculture ministry. (Reporting by Ho Binh Minh; Editing by Sunil Nair)
Reuters
