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RUBBER NEWS INT'L: Vietnam’s rubber exports drop in May
(Last Updated: 24 Jun 2019)

 

 

 

Vietnam’s rubber exports drop in May

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Vietnam’s rubber exports drop in MayHanoi (VNS/VNA) – Vietnam’s rubber exports fell in May due to China’s changing policies and fears over the US-China trade war, a representative of the  Group (VRG) has said.

According to the Ministry of Industry and Trade, in May, rubber exports reached 80,000 tonnes, worth 116 million USD, up 6 percent in volume and 7 percent in value compared with . However, those figures were down 26.5 percent in volume and 26.2 percent in value year-on-year.

Fortunately, in the first five months of the year, rubber exports reached 495,000 tonnes, worth 673 million USD, up nearly 12 percent in volume and 4 percent in value year on year.

The reduction in May’s export value was due to China’s increase of import tariffs for mixture rubber to 10 percent, said Duong Tuan Anh, deputy head of VRG’s Market Department.

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Mixture rubber shipped to China made up half of rubber export volume from Vietnam in the first  of this year.

The trade war was also encouraging manufacturers and traders to be cautious over the movements of the global , especially with the G20 conference in Japan coming at the end of June, he said.

The prolonged trade war would affect agricultural exports and rubber exports in particular because China is the largest export market of Vietnam’s rubber, accounting for more than 60 percent of total rubber exports, he said.

Meanwhile, the US increased taxes from 10 percent to 25 percent for some rubber products imported from China, including rubber latex, conveyor belts, pneumatic tires, gloves and gaskets from May 10. The China Automobile Manufacturers Association said the US tax policy could have a big impact on the country’s auto parts exports. That could lead to reduction in rubber imports from Vietnam for production of auto parts.

However, the trade war could attract investment to Vietnam’s  as firms moved rubber product factories from China to Vietnam to avoid the US tariffs, he said.

Besides those factors, the prolonged hot weather in Vietnam, Thailand and China had slowed rubber output, especially in May – the first month of the new harvest season.

However, according to the Association of Natural Rubber Producing Countries (), in 2019, supply of rubber would continue to exceed demand with supply of 14.5 million tonnes, including an inventory of 2.9 million tonnes from 2018, with demand of 14.4 million tonnes, Anh said.

He noted that the Vietnam Rubber Group had managed nearly 420,000 hectares of rubber in three countries, Vietnam, Laos and Cambodia with total annual consumption of about 400,000 tonnes.-VNS/VNA

 

Cambodia: Falling rubber prices causing concern

Chea Vannak / Khmer Times Share:    

 

 

Rubber being harvested at a farm in Ratanakkiri. KT/ Chor Sokunthea

 

 

The price of rubber has fallen markedly in recent months due to a slowdown in demand in international markets, particularly China.

 
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The commodity currently fetches $1,300 per tonne in the local market, a drop of more than $100 compared to last year, according to figures from the Ministry of Agriculture.

This is bad news for investors in the Cambodian rubber sector, said Lim Heng, vice president of An Mady Group, a company that owns a rubber plantation and exports the product.

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“At the current price, investors in the sector cannot survive. The cost of production is higher than that price at which the product is being traded,” he said, adding, however, that for small farmers the current price may be sustainable.

Mr Heng said that Vietnam, the biggest market for Cambodian rubber, saw a sharp decline in exports to China due to changing Chinese policies and fears over the US-China trade war. He said this affects Cambodia, as a good portion of the Kingdom’s rubber production is sent to China in indirect shipments that pass through Vietnam.

Given these price woes, the private sector is demanding lower taxes on rubber exports.

“Through the Ministry of Agriculture, the private sector has asked the government to tax rubber exports only for shipments that exceed $2,000 per tonne. However, there has been no response from the government yet,” Mr Heng said.

Figures from the Ministry of Agriculture shows that Cambodia exported 63,453 tonnes of rubber in the first four months of the year, an increase of 23 percent.

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Prime Minister Hun Sen last week called on farmers and investors to keep rubber plantation amid the fall in prices.

“The price of rubber is declining, but I would like to ask farmers to now follow what seems to be the trend. Some farmers are cutting down their rubber trees and replacing them with cashew trees. When the price of cashew nuts decline, they will be forced to cut down these trees and find a new crop, incurring a large cost in labour,” Mr Hun Sen said.

An Mady’s Mr Heng said the price of rubber will remain stable until next year. “At the current price, existing rubber investors may be able to stay in business, but attracting new investors will be difficult.

“Without a new policy that gives more incentives, investors won’t dare come in. They will sit and wait until conditions improve.”

 

Rubber export curb won’t significantly prop up price

KUALA LUMPUR (June 18):  Corporation Bhd believes the rubber export curbs by the world’s top producers, beginning April this year, would not significantly push up the commodity’s price.

Founder and executive chairman Tan Sri Lim Wee Chai said this is because the natural rubber latex price has reached a reasonable price of about RM5 per kg currently, a jump of more than 40% from the RM3.50 per kg recorded at end-2018.

He said the curb to prop up the price would only be effective if  are low, as other rubber-producing countries such as , Cambodia, India, Sri Lanka and would take advantage of the current good price to increase their supply and exports.

It was reported that the world’s top producers — Thailand, Indonesia and Malaysia — have agreed to cut natural rubber exports by 240,000 tonnes from April to  this year, aimed at boosting the commodity’s price.

Meanwhile, asked if demand for vinyl gloves is expected to decline due to oversupply from China amid the trade war with the US, Lim concurred, saying China accounts for more than 50% of the world’s exports of vinyl gloves.

To mitigate the impact on the company, Lim said Top Glove had expanded its vinyl glove production to Vietnam, where the cost of production would be much lower, and it also could enjoy a tax advantage of exporting from Vietnam to the US and Europe.

 

Rubber exports plummet

Update: June, 18/2019 - 07:37
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HÀ NỘI – Việt Nam's rubber exports fell in May due to changing Chinese policies and fears over the US-China trade war, a representative of the Việt Nam Rubber Group (VRG) has said.

According to the Ministry of Industry and Trade, in May, rubber exports reached 80,000 tonnes, worth US$116 million, up 6 per cent in volume and 7 per cent in value compared with April. However, those figures were down 26.5 per cent in volume and 26.2 per cent in value year-on-year.

Fortunately, in the first five months of the year, rubber exports reached 495,000 tonnes, worth $673 million, up nearly 12 per cent in volume and 4 per cent in value year on year.

The reduction in May’s export value was due to China’s increase of import tariffs for mixture rubber to 10 per cent, Dương Tuấn Anh, deputy head of VRG’s Market Department, told bizlive.vn.

Mixture rubber shipped to China made up half of rubber export volume from Việt Nam in the first four months of this year.

The trade war was also encouraging manufacturers and traders to be cautious over the movements of the global rubber market, especially with the G20 conference in Japan coming at the end of June, Tuấn Anh said.

The prolonged trade war would affect agricultural exports and rubber exports in particular because China is the largest export market of Việt Nam’s rubber, accounting for more than 60 per cent of total rubber exports, he said.

Meanwhile, the US increased taxes from 10 per cent to 25 per cent for some rubber products imported from China, including rubber latex, conveyor belts, pneumatic tires, gloves and gaskets from May 10. The China Automobile Manufacturers Association said the US tax policy could have a big impact on the country's auto parts exports. That could lead to reduction in rubber imports from Việt Nam for production of auto parts.

However, the trade war could attract investment to Việt Nam’s rubber industry as firms moved rubber product factories from China to Việt Nam to avoid the US tariffs, he said. 

Besides those factors, the prolonged hot weather in Việt Nam, Thailand and China had slowed rubber output, especially in May - the first month of the new harvest season.

However, according to the Association of Natural Rubber Producing Countries (ANRPC), in 2019, supply of rubber would continue to exceed demand with supply of 14.5 million tonnes, including an inventory of 2.9 million tonnes from 2018, with demand of 14.4 million tonnes, Tuấn Anh said.

He noted that the Việt Nam Rubber Group had managed nearly 420,000 hectares of rubber in three countries, Việt Nam, Laos and Cambodia with total annual consumption of about 400,000 tonnes. VNS

Malaysia’s natural rubber production falls over 30 percent in April

VNA 

 

Malaysia’s natural rubber production slides 32.4 percent month on month to 33,864 tonnes in April.
(Photo: thesundaily.my)


Kuala Lumpur (VNA) – Malaysia’s natural rubber production slid 32.4 percent month on month to 33,864 tonnes in April, according to the Malaysian Statistics Department.

The output fell 5.2 percent from the same time last year.

Besides, the Southeast Asian country recorded a 5 percent growth in natural rubber exports, which stood at 55,930 tonnes in April.

China remains the main destination of exported natural rubber, accounted for 41.9 percent of the total exports. It is followed by Germany where made up of 14.4 percent of the total exports. Finland, Iran and the US accounted for 7.4 percent, 6.1 percent and 3.3 percent, respectively.

The official data also showed stocks of natural rubber decreased by 9.5 percent to 183,096 tonnes from March.

In the month, total domestic consumption of natural rubber in April decreased 0.6 percent month on month to 43,737 tonnes, with rubber glove consumption accounted for 75.6 percent of total used.

The Association of Natural Rubber Producing Countries' March data showed that Malaysia was the fourth largest natural rubber producer, after Indonesia, Thailand and Vietnam.

Due to depressed natural rubber prices, Malaysia, Indonesia and Thailand agreed earlier to reduce their natural rubber exports by 240,000 tonnes for four months from April. -VNA

Dr. Ranjit Matthan

 

 
RKMatthan Photo 1 - head and torso

 

Ranjit K. Matthan, Ph.D., Vystar head of research and development for Vytex® rubber latex commercial and raw materials, will oversee multiple new initiatives, including R&D for the development of deproteinized dry rubber.

 

 

Vystar Corp

Vystar Contracts Rubber Expert Ranjit Matthan for Deproteinized Dry Rubber and Latex R&D

 WORCESTER, Mass., June 03, 2019 (GLOBE NEWSWIRE) -- Vystar Corp. (OTC Pink: VYST) extended and expanded its multi-year contract with  Ranjit K. Matthan, Ph.D., an internationally renowned latex and rubber science expert, a member of Vystar's Board of Directors and head of research and development for Vytex® rubber latex commercial and raw materials, to oversee multiple new initiatives.  In this expanded role, he will steer R&D for the development of deproteinized dry rubber, which has potential for use in the US$227 billion global automotive tire market, as well as continue development of custom formulations for specific applications for Vytex deproteinized latex. Vystar has also contracted with Polymer Consultancy Services PLC (P) Ltd. (“PSC”) for execution of specific related R&D activities under the direction of Dr. Matthan.  PSC is a highly respected for its innovative natural rubber science and technology services across the elastomer industry spectrum -- from plantation to products. 

“Under Dr. Matthan’s direction, and with the research team he has assembled, we believe there is a tremendous opportunity for the development of a new class of deproteinized dry rubber that may exhibit  superior characteristics that could be disruptive for the dry rubber industry,”  stated Steve Rotman, CEO of Vystar.  “We appreciate Dr. Matthan’s service as a member of our Board of Directors and his role in the R&D that opened the doors for ultra-low ammonia, pre-vulcanized and reduced-nitrosamine versions of Vytex NRL.”

Specific initiatives outlined in Dr. Matthan’s contract include:

  1. Broadening the range of products and applications for potential ultra-low protein latex (ULPL) initiative for sustainable product diversification for tire/non-tire segment;
  2. Provide oversight, guidance and technical and managerial support in a dedicated program which investigates and evaluates several new product initiatives, including:
    • Work closely with PCS and other assigned groups to conduct R&D and technical support services
    • Continue to help enforce royalties where possible
    • Work with producer entities already associated with ULPL Vytex production and processing in Vietnam, Thailand, and Guatemala to further improve product quality and consistency;
    • Encourage entities to move from trial to commercial scale production of Vytex;
    • Improve supply chain logistics;
    • Review and advise on Vystar patents and patent applications.

Dr. Matthan is on Vystar’s and PSC’s Board of Directors, and has been a consultant to Vystar since 2008.  He has played a significant role in the manufacturing scale up of deproteinized Vytex® natural rubber latex (NRL) in Malaysia and refining the research and development of manufacturing processes for applications using Vytex NRL, such as latex foam for seating/ cushions/mattresses, condoms, adhesives, medical devices, etc. 

“We are fortunate to have Dr. Ranjit Matthan, one of the foremost experts in NRL technology and rubber science leading R&D for Vytex,” noted William Doyle, Vystar former CEO and now advisory consultant.  “He has helped Vystar develop the virtually odor-free, naturally stronger and longer lasting deproteinized latex the world has been seeking for decades.  The possibilities for various applications are unlimited, giving Vystar a competitive advantage and I’m eager to work side by side with him on these projects.”

About Dr. Ranjit Matthan
The Government of India’s Ministry of India appointed Dr. Ranjit Matthan as President of a leading R&D institution -- India Rubber Manufacturers Research Association in January 2019.  Dr. Matthan has been associated with the development of natural rubber and rubber-based industries manufacturing in South Asia since the 1970s and introduced technically specified natural rubber into India.  He played a key role in the establishment of the Centre of Excellence for Tyre Research, Testing and Certification that was sanctioned by the Government of India. He has advised national and international companies and research bodies including the Government of India and the Malaysian Rubber Research and Development Board.  
 
Dr. Matthan is a Fellow of the Institute of Materials, Minerals and Mines, U.K.(Royal Charter).  He has received numerous industry awards, including: the prestigious 2014 Institute of Materials, Minerals and Mining, U.K.’s Hancock Medal for his contributions to the development of the environmentally friendly sustainable growth of the global natural rubber industry, and the 2006 KM Philip Award from the All India Rubber Industries Association for significant contributions toward the development of the Indian Rubber Industry. Dr. Matthan has published dozens of scientific and technical papers on natural rubber and lattices and is a  regular speaker at numerous international conferences, including the International Latex Conference.

About Vystar Corporation
Based in Worcester, Mass., Vystar® Corp. (OTC Pink: VYST) is the exclusive creator of Vytex Natural Rubber Latex (NRL), a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products, and the owner of RxAir UV light air purification products. Vytex NRL is a 100% renewable resource, environmentally safe, "green" and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows. For more information, visit www.vytex.com.

Contacts:
Media: Julie Shepherd, Accentuate PR, 847 275 3643, Julie@accentuatepr.com
Investors: Steven Rotman, Vystar CEO, 508-791-9114, srotman@vytex.com

Forward-looking Statements: Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VYST officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VYST actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VYST has no specific intention to update these statements.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/da2f9550-6d18-4e35-bbad-b97f8462416f

China's top rubber producer suspends tapping at some plantations amid drought

 

BEIJING (Reuters) - China’s biggest natural rubber producer on Thursday said it had suspended tapping for the commodity at some plantations from last weekend due to drought and soaring temperatures in the nation’s main growing area.

Yunnan Natural Rubber Industry Group Co Ltd on Sunday stopped tapping at some of its plantations, mostly located in the southwestern province of Yunnan, according to an official at the company.

 

He did not say which plantations or how much production had been affected, although he added that rainfall in the last day could help alleviate the situation.

 

Most areas in Yunnan province have faced severe drought in the past month, with temperatures in some parts reaching 40 Celsius (104F).

China is one of the world’s top natural rubber producers, churning out about 800,000 tonnes of the material every year. Over half that comes from Yunnan province

Shanghai rubber futures rallied as much as 5 percent from May 15 amid concerns over lower supplies from Yunnan, before easing on Wednesday.
“The effect (on markets) seems to be more psychological,” said Martin Hampson, vice president of trading at Olam’s rubber division.
“At this time of year, production is relatively small anyway as they’re coming out of the wintering period.”
He added that dry weather in other major producers such as Thailand and Vietnam had also tightened supply.
However, some areas of Yunnan saw heavy rain on Wednesday, according to China’s weather agency. More rain is forecast for the coming days.
Reporting by Hallie Gu and Dominique Patton; Editing by Joseph Radford

 

1.By the end of March, the monthly average price of the imported barreled TVR NR latex was RMB 10,837/mt, up RMB 523/mt or 5.07%. Offers for the imported bulk NR latex averaged RMB 10,190/mt, up RMB 714.mt or 7.53% from last month. 2. The monthly average prices of Thailand barreled NR latex was $1,281/mt, up 9.02% from February.repliche orologi The highest and lowest prices were $1,310/mt and $1,250/mt respectively.
 

Cambodia’s rubber exports show 23% increase, but prices decline

Cambodia’s rubber exports increased 23 per cent in the first quarter of this year on the same period last year, while