Jan Vietnam’s Natural Rubber Export Dropped by 50.24% M-O-M
Vietnam’s natural rubber export volume slid M-O-M and Y-O-Y in January.
According to the General Department of Customs, Ministry of Finance of Vietnam, Vietnam’s natural rubber export volume was 134.9 kt in January, down 50.24% M-O-M and down 29.99% Y-O-Y, mainly as China’s demand slowed down caused by the Spring Festival. Besides, the Vietnam production area gradually halted the tapping work in late January, leading to a decrease in the overall output. Yet, Cambodia increased its feedstock supply in the recent two years, so its export volume to Vietnam ratcheted up, which guaranteed abundant feedstock supply. Meanwhile, Vietnam’s producers actively expanded capacity in the recent two years, which guaranteed exports.
Vietnam’s natural rubber export volume to China fell by 52.16% M-O-M.
Vietnam’s natural rubber export volume to China was 107.2kt in January, down 52.16% M-O-M and down 25.14% Y-O-Y. Influenced by the Spring Festival, China’s plants withdrew from the market in succession, and end procurement cooled down. As a result, the export volume slid greatly. Yet, China was Vietnam’s natural rubber major export destination, and the export volume to Chine still took up nearly 80% of the total.
Vietnam’s natural rubber export volume is possible to continue to fall M-O-M in February.
It is predicted that Vietnam’s natural rubber export volume will register an M-O-M decrease in February, and the overall exports are likely to remain insipid in the next two to three months with Vietnam entering the low production stage. In addition, in terms of China’s Vietnam-origin natural rubber inventory, the inventory accumulation is obvious, due to the large import volume since Q4, 2022. In particular, the inventory of Vietnam-origin natural rubber increased rapidly from December to January. Although the overall growth slowed down after the Spring Festival, the inventory accumulation continued. The large inventory is predicted to curb the import of Vietnam’s natural rubber.
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