Natural rubber market projected to be optimistic this year

In detail, global natural rubber output is predicted to climb by 1.9 percent to 14.107 million tons in 2022, up from 14.107 million tons in 2021, while consumption is expected to increase by 1.2 percent year on year to 14.232 million tons.

The elements that foster rubber prices in 2022 including adverse weather conditions may result in supply shortages in the next months; the growth rate of automobile sales is favorable in the major economies; and growing demand for rubber gloves and individual protective suits.

However, several obstacles may affect rubber demand, such as semiconductor shortages affecting automotive production, raw oil price increases, geopolitical crises, container shortages, and soaring transportation and custom clearance expenses.

According to the General Department of Vietnam Customs, Vietnam exported 406.8 thousand tons of rubber for USD 715.39 million in the first quarter of this year, up 0.3 percent in volume and 6.2 percent in value year on year.