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Trade Ministry Calls Reduction in Rubber Export to China
28 | 06 | 2007
The Vietnamese Trade Ministry has asked rubber exporters to reduce shipment volumes to China due to low export price, local media reported
The ministry said Chinese importers are contriving to pull export price of Vietnamese rubber down by spreading news that China is full of tire and the country will shift to using artificial rubber instead of natural rubber.
 
Presently, rubber export price to China is standing at only CNY16,500 (US$2,156) a ton, down CNY300-500 (US$39.2-US$65.6) a ton from early June.
 
Chinese enterprises are halting Vietnamese rubber import with a view to reduce the price to only CNY16,000 (US$2,100) a ton, the ministry warned.
 
The rubber export price will rise in near future due to these following reasons, it confirmed.
 
Firstly, world’s rubber consumption will increase by 6 per cent in late 2007, especially in large markets like the US, Japan, China and EU, the ministry said, adding that increasing oil price will also back the rubber price up.
 
Secondly, rubber reserves in both Japan and China are low. In Japan, the reserve is decreasing by 2.7 per cent compared with 4 months ago, to only 13,331 tons. Rubber Trading Associations in the two countries announced they will step up importing natural rubber to meet growing demand of tire manufacturers. 

Vietnamese exporters, thus, do not need to be hasty in shipping rubber to China, especially via Mong Cai, Dong Hung and Luc Lam border gates, the ministry advised. (Vietnam & World Economy)



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