Rubber prices on 10/10/2024: World prices decline sharply

Rubber prices as of October 10 globally

In the global market, rubber prices on both the Tocom and SHFE exchanges have declined sharply.

At the time of the survey, the price of RSS3 at the Tokyo Commodity Exchange (TOCOM) for October 2024 delivery remained at 417 yen/kg. However, the November 2024 delivery decreased by 6 Yen (equivalent to 1.46%), settling at 405 Yen/kg.

At the Shanghai Futures Exchange (SHFE), the price of natural rubber for October 2024 delivery fell sharply by CNY 295 (equivalent to 1.68%), reaching CNY 17,300/ton. The November 2024 delivery saw a decrease of CNY 325 (equivalent to 1.82%), landing at CNY 17,510/ton.

Global rubber prices have seen a significant decline today.

The ANRPC has revised its forecast for natural rubber supply in 2024 down from 14.54 million tons to 14.5 million tons due to the adverse effects of unfavorable climatic conditions as the El Niño phase shifts to La Niña. Widespread leaf drop diseases are negatively impacting both the production and quality of rubber. Rubber farmers in countries like Thailand, Indonesia, and Malaysia are not yet prepared to expand their cultivation areas.

Additionally, major rubber-producing countries have implemented policies to limit production and cooperate on supply management to stabilize the market. Thailand, which accounts for 33% of global production, plans to reduce rubber cultivation area over the next 20 years. Indonesia, the second-largest rubber exporter, is trending toward converting rubber land into palm oil and other economically valuable crops.

In Vietnam, many enterprises are converting rubber land into industrial land, as leasing industrial land is more economically viable than rubber cultivation.

Thus, the ANRPC forecasts that global rubber production will increase by only 0.4% in 2024, while production from member countries is expected to decline by 0.6%.

Regarding demand, ANRPC has adjusted its forecast for global rubber demand this year, increasing it from 15.67 million tons to 15.75 million tons, anticipating a gradual recovery in consumption demand in China as the country implements various economic growth support policies (such as reducing the reserve requirement ratio by 0.5% and lowering the 7-day repo rate by 20 basis points to 1.5%).

ANRPC projects that global rubber demand will grow rapidly at a rate of 2.3% in 2024.

Thus, global rubber prices on 10/10/2024, have collectively dropped significantly compared to yesterday.

Rubber prices on October 10 domestically

In the domestic market, rubber prices have remained stable compared to yesterday.

According to the latest listed prices, the raw rubber price at Mang Yang Company ranges from VND 443 to VND 447/TSC, while the collected latex price is around VND 406 to VND 461/DRC.

At Ba Ria Rubber Company, the purchase price for latex is set at VND 440 to VND 450/TSC, with DRC latex (35-44%) priced at VND 15,700/kg and raw latex priced between VND 19,500 and VND 21,000/kg.

Binh Long Rubber Company reports purchase prices of VND 386 to VND 396/TSC, and the price of mixed latex (60% DRC) reaches VND 14,000/kg.

The latest price from Phu Rieng Rubber Company is around VND 430/DRC for mixed latex and VND 470/TSC for latex.

Thus, on 10/10/2024, domestic rubber prices are being purchased around VND 386 to VND 450/TSC.

$ 1 = VND 24.640 - Source: Vietcombank.