Vietnam's rubber inventory up, as export price down

2013-08-30 08:39:57 GMT2013-08-30 16:39:57(Beijing Time)  Xinhua English

HANOI, Aug. 30 (Xinhua) -- Vietnam's rubber inventory is estimated to reach 200,000 tons in 2013, due to declining rubber export prices, according to the Vietnam Rubber Association (VRA) on Friday.

Specifically, prices of Vietnamese rubber exports sharply decreased in 2012, from the highest level of 4,562 U.S. dollars per ton to 2,795 U.S. dollars per ton, a year-on-year decrease of 30 percent. In the first seven months of 2013, it continued declining to 2,387 U.S. dollars per ton, down 18 percent year on year.

Insiders said the low price will remain for the next few years due to the global economic downturn, high inventories and increasing supply from rubber growing countries.

According to VRA, about 83 percent of Vietnam's total annual natural rubber output is exported, and the export price is forecast to reach as low as 2,300 U.S. dollars per ton by the end of 2013.

The association proposed the Ministry of Finance to reduce the export tax for condensed latex rubber and mixed rubber, from the current 3 percent and 5 percent rates to 1 percent. Meanwhile, the tax ratio of other natural rubber products is set to rise from zero percent to 1 percent.

In the first eight months of this year, Vietnam exported 638, 000 tons of rubber, worth 1.52 billion U.S. dollars, up 4.6 percent in volume, but down 14.1 percent in value year on year.

China is the biggest importer of Vietnamese rubber exports, accounting for 43.9 percent of the country's total rubber export value, followed by Malaysia with 20.5 percent, according to the Ministry of Agriculture and Rural Development.

With 1.01 million tons of natural rubber exported in 2012, up 23.8 percent over 2011, Vietnam became the world's third largest natural rubber exporter after Thailand and Indonesia.

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