export rubber 12av2

Export rubber prices rebound
(SGT- 27/3/2002)- Export rubber prices haveclimbed by around 20% in the past three weeks, a sales executive at the Vietnam RubberCorporation (Geruco) said. Grade 3L was being quoted being at about US$660 per ton, FOBHCMC, yesterday compared with US$520-530 per ton early this month. The price rise ispartly attributed to an agreement reached late last year to reduce rubber output byMalaysia, Thailand and Indonesia, which are responsible for over 70% of the world's totaloutput, and cut their rubber exports by 10%, the official said.

The other reason is the drought affecting many rubber growingcountries including Vietnam. "Many of our rubber areas would have had latex withoutthe drought," he said. In addition, the Japanese and American economies arerecovering, so more rubber is needed thus pushing up the price, analysts say. Geruco isresponsible for some 70% of Vietnam's rubber export volume of 90,000 tons in the firstquarter. China has taken 33%, followed by Singapore with 14%, former Soviet countries10.3%, South Korea 7%, Taiwan 6%, and Germany 5.7%.