Ending a successful week.

Rubber prices are showing positive trends partly due to rising crude oil prices, while the market is concerned about potential disruptions to rubber supply in Thailand.

World market

At the close of trading on Friday, May rubber futures in Japan rose 1% (2.9 yen) to 294.1 yen/kg. Similarly, June rubber futures in Thailand increased 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.

According to the Meteorological Department of Thailand, heavy rains and flash floods in the south could occur from May 2-7, raising concerns in the market about disruptions to rubber supply. This somewhat supported prices during the weekend trading session.

Domestically, some businesses are still keeping rubber prices stable.

In other news, on April 29, the German Rubber Industry Association (WDK) called for the 'immediate' implementation of a domestic economic reform. WDK president Michael Klein urged the government to focus more on small and medium-sized industrial companies.

This appeal comes as the German rubber industry faces serious challenges. According to the latest WDK survey, industry revenue is projected 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 over 40% reporting earnings under considerable pressure or even facing threats to their survival, compared to around 25% in 2023.

Particularly concerning is the trend of relocating production. More than one-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 sign" 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, the regulatory burden appeared to be a major concern, with 90% of companies reporting an increase in administrative procedures due to a wave of new regulations. Since 2019, Germany has enacted 13,000 new laws, which industry leaders believe have placed a significant burden on businesses.

Domestic market

Domestically, some businesses are still maintaining stable rubber prices. Specifically, Phu Rieng Rubber Company is keeping 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/degree TSC/kg (applicable to TSC degrees 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 purchase prices for liquid latex ranging from 415 - 420 VND/TSC (grade 2-grade 1), and for mixed coagulated latex from 378 - 430 VND/DRC (grade 2-grade 1). These purchase prices are effective from April 15, 2025.

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