Vietnam rubber business inventories as a result of increased rubber prices

Rubber prices fell sharply in the near future, as a result of higher than the cost price, the Vietnam Rubber increase in business inventories.

October 22, Vietnam SVR rubber and rubber RSS from 57,000,000 Shield / ton fell quickly to shield 27,000,000 / tonne, many companies inventory backlog.

It is reported that Vietnam's rubber industry estimates the average cost of harvesting rubber resin million for the 2800-3000 Shield / ton. As of October 14, the last one month of Mong Cai market price of rubber fell to 27,000,000 Shield / ton, no one to buy. Prior to that, because of lower prices, rubber goods companies cover Hard Trading in a Dream, hoping to like in October 2007, customers need to purchase rubber, stocks of all kinds, prices. Now, the cost is higher than the sales price, business-to-sales have been indifferent, each of the stocks of small companies have 400-500 tons of rubber, rubber stocks of large enterprises in the 1000-2000 tonnes.

Vietnam Rubber Association of the Secretary-General Cui-hua Chen's view, usually with the rubber price rise in international oil prices, high crude oil prices rose to 140 U.S. dollars / barrel, the fluctuation range to reach 65-80 dollars, so the low price of rubber mixed by the world's favorite . Now, the financial crisis in the United States and Europe, economic recession, the Vietnam Rubber season (September to December) the supply of natural rubber in a rapid increase in the fourth quarter. These factors combined, resulting in rubber prices.

Vietnam Rubber Industry Group, Le Quang-chun, general manager of the Vietnamese rubber industry remains optimistic. He believes that the export prices, and rubber plantation industry is still a successful season. Group rubber output in 2008 reached 320,000 tons, the average budget plan for a shield 36,000,000 / ton, as a result of high prices at the beginning, you can now make up the difference between the low-cost, to achieve 40,000,000 rupiah average price / ton, higher than the budget price 4,000,000 Shield / ton, more than 30% in profit margins. Rubber prices have risen to 60,000,000 Shield / ton, and that price is speculation, not actual prices, producers and consumers have damage.