Vietnam expects to increase natural rubber exports to India

Vietnam's "Customs online" reported on February 8 that Vietnam's agricultural products processing and Market Development Bureau of the Ministry of agriculture and rural areas said that in January 2021, the export volume of rubber was about 200000 tons and 321 million US dollars, which were 2.2 times and 2.4 times of the same period last year respectively. China, India and South Korea are the three major rubber export markets of Vietnam, accounting for 76.8%, 3.7% and 2.1% of the market share respectively.

In terms of global market prices, the price of Osaka futures exchange fluctuated in January. In January 8th, the trading day ended, and the benchmark futures contract price was 245.9 yen / kg in 2021. Since then, China's COVID-19, the biggest buyer, has repeatedly affected demand, resulting in lower prices. But on the 20-21 th of January 2021, the market resumed its rally as the market looked forward to the election of the new president of the United States or Biden's response to COVID-19's economic stimulus measures.

With regard to the recent rubber export and the outlook for 2021, especially the export situation to China, according to the analysis of the agricultural products processing and Market Development Bureau, in 2020, China's natural and synthetic rubber imports will reach US $4.34 billion, with a year-on-year growth of 35.2%. In this year, Vietnam was the second largest supplier of rubber to China, with rubber exports to China reaching US $1.3 billion, up 35.2% year on year.

However, it is worth noting that in the last two months of 2020, compared with the previous months, China's rubber imports decreased sharply, which shows that a large amount of rubber raw materials have been reserved. Therefore, it is very likely that China's rubber imports will decline in 2021 due to its huge reserves of rubber.

Therefore, Vietnam hopes to increase its rubber exports to the Indian market this year. According to the analysis of Nomura Research Institute of India, after the epidemic, India's automobile industry is expected to recover strongly in the fiscal year 2021 / 2022.