Promising prospect of the rubber sector in 2022

Since the beginning of February 2022, rubber prices at key Asian exchanges have increased again. According to the Association of Natural Rubber Producing Countries (ANRPC), the easing of restrictions related to the Covid-19 pandemic such as the reopening of borders in some countries and the resumption of economic activities will contribute significantly to the recovery of rubber demand in 2022.

Therefore, the prospect for the rubber sector in 2022 will be very promising, the selling price will continue to remain at a high level. ANRPC forecasts that global rubber production in 2022 will increase by 5.6% compared to 2021. In 2023, it is expected that the global rubber supply shortage will increase, with increasing shortage in the following years until 2028 and may last until 2031 due to the widening supply and demand gap.

This forecast has been made on the basis of planting trend assessment and the possibility of expanding the area of ​​mature rubber trees in rubber producing countries. The natural rubber sector has escaped the period of prolonged excess supply.

In 2021, Vietnam's rubber sector has made efforts to fulfill the "dual goal", while effectively preventing the Covid-19 pandemic. With an estimated output of 1.2 million tons in the year, Vietnam's natural rubber sector ranks third in the world, accounting for a market share of 8.7%; and exports reached 1.9 million tons, accounting for 17.4% of the global market share. The Vietnamese rubber yield in 2021 is estimated at 1,682 kg/ha, continuing to lead Asia, surpassing major producing countries such as India, Thailand and Malaysia.

In 2021, China continues to be Vietnam's largest rubber consumption market, rubber exports to this market increase compared to 2020. According to statistics by the General Department of Customs, in 2021, Vietnam exported to China 1.39 million tons of rubber, worth 2.28 billion USD, up by 2.6% in volume and by 25% in value compared to 2020; the average export price reached 1,636 USD/ton, up by 21.8% compared to 2020…