Rubber exports to Taiwan increased sharply

Vietnam's rubber exports to Taiwan increased sharply in the first 5 months of 2021, especially natural rubber.

Harvesting rubber latex at Binh Long Rubber One Member Co., Ltd. Photo: Thanh Son.

According to the Financial Supervisory Commission of Taiwan, in the first five months of 2021, Taiwan imported 117,760 tonnes of rubber, worth US$ 261.9 million.

Taiwan's total value of imported rubber increased by 10.1% in volume and 27.8% in value over the same period in 2020.

Thailand, Japan, the United States, Indonesia, and Vietnam are the five largest rubber exporters to the Taiwan market in the first five months of 2021.

For Vietnam, the total amount of rubber exported to Taiwan is 11,950 tonnes of rubber, worth US$ 23.59 million, up 78% in volume and 132.1% in value over the same period in 2020.

Vietnam's market share accounted for 10.2% of Taiwan's rubber market, up from 6.3% in the first five months of 2020.

Taiwan is tending to increase imports of Vietnamese rubber and reduce imports from some countries such as Thailand, Japan, Korea, and Malaysia.

Concerning natural rubber alone, Vietnam is the third-largest exporter to Taiwan in the first five months of 2021. Total output is 11,760 tons, worth US$ 23.4 million, up 91.3% in volume and up 148% in value over the same period in 2020.

Vietnam's natural rubber market share accounts for 28.9% of the Taiwan market, up from 15.1% in the first five months of 2020.

According to the General Department of Customs, rubber exports are growing strongly in both quantity and value. Due to the high demand for rubber, the world economy recovered in the context of Covid-19. The automobile tires and rubber gloves manufacturing industry increased sharply, pushing up rubber prices.

The global demand for natural rubber in 2021 is estimated at 13.4 million tonnes, up 7% compared to 2020. That is the factor that increases the total import and export turnover of rubber in many countries, including Taiwan.

From 2012 to now, the price of rubber has dropped continuously due to excess supply globally. However, in the medium term, from 2021-2024, experts forecast rubber prices to recover.

Over the years, the export natural rubber products of Vietnam Rubber Group (VRG) have affirmed their brand in the international market, but the effectiveness of rubber products is not high.

To meet the requirements of sustainable development in the coming time, VRG determines the task of extending the product chain from agriculture to producing high-value rubber industrial products and providing services for this chain.

According to the Department of Agricultural Product Processing and Market Development, Ministry of Agriculture and Rural Development, in the first five months of 2021, rubber exports are estimated at 548 thousand tonnes, worth US$ 923 million, up 58.7% in volume and up 94% in value over the same period in 2020.

China continued to increase rubber imports from Vietnam. As a result, it is forecasted that rubber exports will continue to increase due to the recovery in demand from the import market.

China, India, and the United States are the three largest rubber-consuming markets of Vietnam in the first three months of 2021, accounting for 64.2%, 5.1%, and 2.7% market share respectively.

In the first months of 2021, rubber export value increased in all key markets. The average export price of rubber also increased sharply. In the three months of 2021 alone, it reached USD 1,660 per tonne, up 14.1% over the same period in 2020.

According to experts, it is forecasted that in the 2021-2024 period, the global rubber price may enter a new price increase cycle due to the decreasing supply of rubber. Vietnam's rubber exports may benefit from the price.

However, the rubber manufacturing and processing industry need to develop in deep processing and gradually reduce raw rubber exports so that Vietnamese rubber can achieve higher value in the international market.