Vietnamese rubber still has much room for export to the United States.

The US market holds significant potential for Vietnamese rubber.

According to the latest report from the Import-Export Department ( Ministry of Industry and Trade ), in April 2024, the United States was Vietnam's 10th largest rubber export market. Citing statistics from the General Department of Customs, the agency stated that in April 2024, Vietnam exported nearly 1,090 tons of rubber to the United States, valued at US$1.87 million, an increase of 0.3% in volume and 17.5% in value compared to April 2023.

In the first four months of 2024, Vietnam's rubber exports to the United States reached nearly 7,460 tons, worth $11.7 million, an increase of 37.1% in volume and 58.2% in value compared to the same period in 2023.

Vietnam's rubber industry still has significant potential for export to the US market. (Illustrative image)

According to the Import-Export Department's assessment, rubber exports to the United States have recently increased again, and Vietnam's rubber market share in the US has gradually improved, but it still accounts for a small share of total US imports. "Vietnam's rubber still has much room for export to the US market. It is predicted that Vietnam's rubber exports to the US will be more promising in 2024," the Import-Export Department stated.

According to information from the Import-Export Department, in the first four months of 2024, Vietnam's exports to the United States mainly consisted of natural rubber. Of this, latex was the most exported type, accounting for 31% of total rubber exports with 2.31 thousand tons, valued at US$2.89 million, a decrease of 7.3% in volume but an increase of 12.3% in value compared to the same period in 2023. Second was SVR 3L, accounting for 26.54% of total rubber exports with 1.98 thousand tons, valued at US$3.35 million, an increase of 106.67% in volume and 125.7% in value compared to the same period in 2023.

The third most exported rubber type to the United States is SVR CV60, accounting for 26.42% of total rubber exports to the United States with 1.97 thousand tons, valued at $3.35 million, a decrease of 5% in volume but an increase of 5.4% in value compared to the same period in 2023.

Furthermore, in the first four months of 2023, the volume and value of exports of some rubber types to the United States also increased sharply compared to the same period in 2023, such as RSS1 and SVR 5; while exports of some types such as SVR CV50, RSS3, and SVR 10 decreased sharply compared to the same period in 2023.

Regarding export prices, the Import-Export Department also reported that in the first four months of 2024, the average export prices of all types of rubber to the United States increased compared to the same period in 2023, with the strongest increases seen in RSS1 (up 24.1%), Latex (up 21.1%), SVR 5 (up 16.7%), RSS3 (up 11.3%), and SVR CV60 (up 11%).

According to statistics from the U.S. International Trade Commission, in the first three months of 2024, the United States imported 443,120 tons of rubber (HS: 4001, 4002, 4003, 4005), valued at $893.49 million, an increase of 0.2% in volume but a decrease of 3% in value compared to the same period in 2023. Indonesia, Thailand, Canada, South Korea, and Ivory Coast were the five largest suppliers of rubber to the United States in the first three months of 2024.

Affected by weather conditions, rubber prices have risen again.

According to information from the Import-Export Department, in the 10 days in mid-May 2024, rubber prices on Asian exchanges rose again amid concerns about weather in Thailand and hopes of improved demand from China.

The China Association of Automobile Manufacturers announced that China's car sales in April 2024 increased by 9.3% compared to the same period in 2023.

Global natural rubber supply is projected to increase in the coming months as farmers in major producing countries are expected to restart harvesting; however, unusual weather conditions and an extended summer could impact supply.

At the Osaka Exchange (OSE), rubber prices rebounded due to unfavorable weather in Thailand and a recovery in oil prices. On May 17, 2024, the price of RSS3 rubber for near-term delivery was 320.3 Yen/kg (equivalent to US$2.06/kg), up 3.7% from May 10, 2024, and up 53.3% from the same period in 2023.

At the Shanghai SHFE exchange, RSS3 rubber prices are also trending upwards. On May 17, 2024, the price of RSS3 rubber for near-term delivery was 14,490 RMB/ton (equivalent to 2.01 USD/kg), up 4.3% from May 10, 2024, and up 20.3% from the same period in 2023.

Regarding inventory levels, for the week ending May 10, 2024, natural rubber inventory at the Shanghai Futures Exchange reached 216,771 tons, a decrease of 330 tons compared to the previous week; incoming inventory reached 216,640 tons, an increase of 360 tons compared to the previous week. Inventory of rubber at warehouse number 20 reached 141,018 tons, a decrease of 2,621 tons; incoming inventory at warehouse number 20 reached 136,078 tons, a decrease of 102 tons compared to the previous week. Meanwhile, natural rubber inventory at the Qingdao General Trading Warehouse reached 362,200 tons, a decrease of 7,900 tons compared to the previous week.

In Thailand, RSS3 rubber prices have also risen again. On May 17, 2024, RSS3 rubber was offered at 80.33 Baht/kg (equivalent to US$2.22/kg), up 1.8% from May 10, 2024, and up 50.1% from the same period in 2023. The Thai meteorological agency warned of adverse weather conditions, heavy rains, and flash floods in the upstream areas from May 17-22, 2024, potentially causing crop damage.

Source: https://congthuong.vn/cao-su-viet-nam-con-nhieu-du-dia-de-xuat-khau-sang-hoa-ky-322862.html