ASEAN KEY DESTINATIONS
Latex shortfall increases prices
"This is the highest it's ever been. It's even higher than before the world recession," Hoa said.
"While demand on the production industry has increased significantly thanks to the recovery of the world economy, supplies from main rubber export countries such as Thailand, Malaysia, Indonesia and Vietnam have remained low," Hoa said, explaining that rubber yields had been affected by bad weather conditions.
"Due to this, global supply increased by only 5 percent and the price is likely to continue to rise," she added.
The VRA changed its projections for national rubber export turnover after the price of latex started to rise in September.
"In August, we predicted an annual export turnover of about $1.5 billion. Now, thanks to the higher price, the export turnover for the whole year is forecast to be more than $2.2 billion," Hoa said.
If this forecast proved to be correct, it would equate to a 23 percent increase compared to 2008 and a year-on-year increase of 45 percent.
While the high price was profitable for exporters, it strongly affected production companies. "Companies which produce tires, rubber gloves and mattresses are struggling due to the high price," Hoa said.
In the world market, the price of latex is also up. Yesterday, it hit $4,700 per ton in Tokyo. It is predicted to further increase with demand from China, the biggest consumer in the world market, increasing 13 percent year-on-year in November.
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