End of a great week

Rubber prices have been positive partly due to the increase in crude oil prices, while the market is concerned about the disruption of rubber supply in Thailand.

World market

At the end of the weekend trading session, rubber futures for May in Japan increased by 1% (2.9 yen) to 294.1 yen/kg. Similarly, rubber futures for June in Thailand increased by 0.7% (0.56 baht) to 75.39 baht/kg. Meanwhile, the Chinese market was temporarily closed for International Labor Day. Compared to the end of last week, rubber prices in Japan and Thailand changed by +4% and +2%, respectively.

Heavy rains and flash floods in the south may occur from May 2-7, raising concerns about disruptions in rubber supply, according to the Thai Meteorological Department. This partly supported prices in the final session of the week.

Domestically, some businesses still keep rubber prices stable.

In another development, on April 29, the German Rubber Industry Association (WDK) called for an “immediate” implementation of economic reforms in the country. WDK President Michael Klein urged the government to focus more on small and medium-sized industrial companies.

The call comes as the German rubber industry faces serious difficulties. According to the latest WDK survey, industry revenue is expected to fall by almost 2% in 2024, while production is down 3% compared to the previous year. The financial situation of companies has also deteriorated significantly, with more than 40% of businesses reporting that their earnings are under pressure or even threatened, compared to around 25% in 2023.

Particularly worrying is the trend of production relocation. More than a fifth of companies in the rubber industry are planning to move production out of Germany by 2025. Mr Klein described the current situation as a “clear warning signal” for the industry.

The survey identified five key challenges for rubber producers: weak demand, regulatory pressure, high energy costs, sustainability requirements and production site conditions. Of these, regulatory burden appears to be a major concern, with 90% of companies reporting increased red tape due to a wave of new regulations. Since 2019, Germany has enacted 13,000 new laws, which industry leaders say places a significant burden on businesses.

Domestic market

Domestically, some enterprises still keep rubber prices stable. Specifically, Phu Rieng Rubber Company keeps the purchase price of mixed latex at 400 VND/DRC, and liquid latex at 440 VND/TSC.

At Ba Ria Rubber Company, the purchase price of liquid latex is 462 VND/TSC degree/kg (applied to TSC degree from 25 to under 30); DRC coagulated latex (35 - 44%) is 13,600 VND/kg; raw latex ranges from 16,900 - 18,200 VND/kg.

Meanwhile, Mang Yang Rubber Company quoted the purchase price of latex fluctuating around 415 - 420 VND/TSC (type 2-type 1), and mixed latex around 378 - 430 VND/DRC (type 2-type 1). The purchase price is effective from April 15, 2025.

Source: https://baodaknong.vn/gia-cao-su-hom-nay-4-5-ket-thuc-mot-tuan-khoi-sac-251381.html