Tuesday, February 19 2019

VietNamNews

Rubber stocks rise on global prices

Update: January, 21/2019 - 11:00
The global rubber price has increased sharply in recent weeks, benefiting the share prices of Vietnamese producers on the stock market.— Photo tinnhanhchungkhoan.vn

HÀ NỘI — The global rubber price has increased sharply in recent weeks, benefiting the share prices of Vietnamese producers on the stock market.

According to Bloomberg, the rubber price on the Tokyo Commodity Exchange (TOCOM) rose 0.8 per cent on Friday to finish last week at 186.20 yen (US$1.7) per kilogramme.

The TOCOM rubber price has gained by 9.4 per cent since the end of 2018 and by nearly 22 per cent since its six-month low of 152.9 yen per kilogramme on November 21, 2018.

According to several organisations, growing demand in 2019 is set to push rubber prices higher.

According to the Association of Natural Rubber Producing Countries (ANRPC), the total global production of natural rubber will rise 5.8 per cent year on year to reach 14.69 million tonnes in 2019 and total consumption is forecast to rise by 3.6 per cent year on year to 14.73 million tonnes.

The price of natural rubber on global markets will be affected by crude oil prices with expectations that higher crude oil prices will boost natural rubber prices.

On Friday, Brent crude rose 2.5 per cent to end last week at $62.70 a barrel, having increased by nearly a quarter since December 24, 2018.

On the Vietnamese stock market, natural rubber companies have seen their stocks increase significantly in the first three weeks of the year thanks to positive trading of rubber on global markets.

Since Christmas, shares of the Southern Rubber Industries Group (HoSE: CSM) have gained as much as 4.7 per cent.

In the same time, Đà Nẵng Rubber JSC shares (HoSE: DRC) have increased by 11.5 per cent and Sao Vàng Rubber JSC shares (HoSE: SRC) have shot up 36.3 per cent.

Other rubber companies have also enjoyed strong price rises, such as Tây Ninh Rubber JSC (10.5 per cent) and Đồng Phú Rubber JSC (9.5 per cent).

According to Vietnamese agencies, the country witnessed an increase in its total export volume but export value fell.

General Customs Department of Việt Nam recently reported the country’s rubber exports in December 2018 fell 3.8 per cent in volume and 5.8 per cent in value on a monthly basis to 172,800 tonnes and $210.52 million.

The figures were up 2.5 per cent in volume and down 13.6 per cent in value compared to 2017.

Total rubber export volume in 2018 reached 1.56 million tonnes, worth $2.09 billion. The figures were up 13.3 per cent year on year in volume and down 7 per cent in value.

Exports to China gained 16.4 per cent year on year in volume but dropped 5 per cent in value, reaching 1.04 million tonnes and $1.37 billion.

Việt Nam’s rubber exports to India jumped 85.6 per cent year on year in volume and 60.5 per cent in value to 102,900 tonnes, worth $145.4 million.

The average export price of Vietnamese rubber products was $1,218 per tonne in December 2018, down 2.1 per cent monthly and 15.7 per cent yearly. — VNS

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