Rubber news

MRE Elected To Head IRA
Source: MRE / May 28, 2007

At the Biennial General Meeting of the International Rubber Association (IRA) held on 13 May 2007 in Bangkok, Thailand, the MRE was elected to assume the chairmanship of the IRA for a two-year period from 2007 - 2008. Members of the IRA Management Committee elected for this new term comprise of eight associations/organisations as follows:-

Organisations domiciled in the producing areas

(i) Malaysian Rubber Exchange (MRE)
(ii) Thai Rubber Association (TRA)
(iii) Singapore Commodity Exchange Ltd. (SICOM)
(iv) Rubber Association of Indonesia (GAPKINDO)

Organisations domiciled in the consuming areas

(v) Rubber Trade Association of Europe (RTAE)
(vi) Rubber Manufacturers' Association, US/
Rubber Trade Association of North America Inc.
(vii) European Tyres and Rubber Manufacturers' Association (ETRMA)
(viii) Rubber Trade Association of Japan (RTAJ)

The IRA was established in 1971 and its membership is open to all Associations whose members are engaged in the production, consumption or marketing of natural rubber and all other organizations as approved by the general membership.

Amongst others, the objects of the IRA are:-

to provide a forum for the discussion of international commercial matters relating to natural rubber ;
to formulate International Contracts for natural rubber ;
to ensure observance of the sanctity and the ultimate enforcement of all IRA and linked contracts; and
to facilitate the continual improvement in the international trade in natural rubber .
Vietnam may raise rubber output to meet demand
Source: Akron Beacon Journal / May 28, 2007

Vietnam is considering an increase in its natural rubber output by 30 percent to 2010 by expanding plantations and improving yields at small holders, the Vietnam Rubber Association said.

The nation will increase output of the material used to make tires and shoes to 700,000 tons over three years from 540,000 tons last year, said Tran Thi Thuy Hoa, secretary-general of the Vietnam Rubber Association.

Rubber prices in Tokyo have risen 44 percent in the past two years partly because of surging demand for automobiles in China , the world's second-largest vehicle market.

China is the biggest buyer of Vietnamese rubber , accounting for about 66 percent of the country's natural rubber exports last year.

"The high demand and favorable price of natural rubber in recent years has encouraged the government to support the expansion of rubber areas even in sub-optimal regions and in neighboring countries such as Laos and Cambodia ," Hoa said.

Vietnam 's rubber plantation area is expected to rise to 1.7 million acres by 2010.

The Vietnam Rubber Corporation is the country's largest natural rubber producer with output of 325,900 tons in 2006, or 60 percent of the nation's production.

Vietnam, Laos ink major rubber deal
Source: Sai Gon Giai Phong – Translated by an Dien / 16 May 2007

The Vietnam Rubber Industry Group (VRIG) will pump US$18.7 million into processing rubber and industrial crops in Laos as part of a deal signed Wednesday.

Under the 30-year project, VRIG's Quasa-Geruco joint stock company will be in charge of cultivating rubber and timber as well as building a rubber -processing plant in an Laos' Savannakhet Province.

Quasa-Geruco has a chartered capital of VND120 billion (US$7.5 million) contributed by VRIG's seven members.

The group recently disclose a plan to spend VND2 trillion ($124.8 million) to develop 136,000 hectares of rubber trees in the Vietnamese Central Highlands provinces by 2010.

Vietnam rubber prices rebound on mounting global demand
Source: SGGP – Compiled by Dong Ha / 16 May 2007

Vietnam 's export rubber price is expected to enjoy a 10 percent jump on the world market for the rest of this year, fueled by increasing demand and thin supplies, analysis said.

They also forecast that Vietnamese-sourced rubber shipments to China – the world's largest rubber importer – would see price hikes of 20 percent to US$2,400 per ton from the current $2,000.

On world market the price would average at $2,200 per ton.

The world produces about nine million tons of natural rubber a year and consumes most of it, leaving a delicate balance between supply and demand.

However, a recent conference on world rubber industry in Thailand predicted that global demand would jump by more than 6 percent for the rest of the year.

Thailand , Indonesia , Malaysia and Vietnam are all gearing up for a rise in production on the hope of favorable weather and better yields.

But any rise in output would be absorbed by growing demand in China , India and Europe , analysts said.

China has to import 1.75 million tons of natural rubber for its surging tire industry this year - a near 9 percent rise over the last year.

India 's tire industry is also booming and could boost imports by up to 20 percent to 100,000 tons of natural rubber in the year ending March 2008.

Vietnam General Rubber Corporation (Geruco) therefore forecast a steady increase in export prices in the near term, buoyed the aforesaid demand.

Vietnam earned $254 million of rubber exports in the first quarter,to mainly to China , South Korea , Japan and the U S , a year-on-year 5.6 percent down due to globally falling prices.

Of the figure, $101 million came from the Chinese market, which, as Vietnam 's biggest buyer, accounted for about 66 percent of the country's natural rubber exports last year.

It is expected to ship roughly 780,000 - 820,000 tons of rubber this year, a rise of between 12 percent and 17 percent over the last year.

The Vietnamese government has recently supported the expansion of rubber areas even in sub-optimal regions and in neighboring countries such as Laos and Cambodia .

Vietnam 's rubber plantation area is expected to rise to 1.7 million acres by 2010.

The sector has over 70 latex processing plants each with a production capacity of 20,000 tons per year.