RUBBER’S SELLING RATE WILL INSCREASE BY OVER 25% COMPARE TO 2020
Rubber prices increased by over 25%, exports increased by 110%.
According to the report of the Ministry of Industry and Trade, rubber exports in the first 2 months of the year recorded 320,000 tons, up strongly by 90%; the value reached 516 million USD, up 110% over the same period last year. Particularly in February, rubber exports reached about 130,000 tons, worth $ 211 million; increased 68% in volume and 86% in value over the same period last year.
Vietnam mainly exports natural rubber to China, India and South Korea, only the Chinese market accounts for 76%. In 2020, Vietnam’s rubber export turnover to this market will reach US $ 1.78 billion, an increase of 18.1% compared to 2019; volume 1.36 million tons, up 17.3%.
Not only that, natural rubber prices also recorded a positive sign. The average export price in February increased by 0.9% over January 2021 and by 10.9% over the same period last year to $ 1,623 / ton.
Dong Phu Rubber Company (HoSE: DPR) said the average selling price of rubber in the first 2 months reached 46 million VND / ton, up 25.5% over the same period last year. In which, the export price and entrusted export price is 43.37 million dong / ton; domestic consumption price is 48.2 million dong / ton. Tay Ninh Rubber Company (HoSE: TRC) recorded an average selling price of 46.3 million VND / ton, an increase of 35% compared to the average price of 2020.
Futures prices on the Tokyo market recorded a sharp increase to nearly 330 JPY / kg in January then cooled down, as of March 12, they reached 272 JPY / kg, more than double the record low of 130 JYP. / kg is set in April 2020.
According to the Association of Natural Rubber Producing Countries (ANRPC), the demand for rubber in the coming time will increase due to the forecast of China economy – the leading rubber consumer in the world – continue to improve, especially in 2021. At the same time, automakers boosting output also makes demand for natural rubber increase. While supply may be interrupted due to weather factors, production in major exporting countries such as Thailand, Indonesia, Vietnam and Malaysia may decrease when winter starts, rubber trees fall. leaves and gives low yield of latex. As a result, the selling price of rubber is expected to continue to increase.
The International Rubber Research Organization (IRSG) forecasts that world demand for natural rubber in 2021 will recover thanks to the growth of the commercial vehicle segment, mainly due to emerging markets. Meanwhile, demand for synthetic rubber in 2021 is forecast to increase 10.2% compared to 2020 thanks to strong demand for gloves and other products during the season.
In the report to the Annual General Meeting of Shareholders, the leader of Phuoc Hoa Rubber (HoSE: PHR) said that the favorable rubber price in the first months of the year was quite high. However, for the whole year, the leader of Phuoc Hoa said that it will continue to be a difficult year, from 2021 onwards, rubber plantation projects are not exempt from land rent during the capital investment period. , the export situation was limited when the largest export market – China showed signs of slowing down due to strong buying in the last quarter of the year.
Accordingly, the business has set a plan to consume 34,000 tons, up 7%; Average selling price is 34 million VND / ton, up 2% compared to the implementation level in 2020. Particularly in the first quarter, the enterprise sets a target of consuming 6,130 tons of dry latex, fulfilling 18% of the year plan; Average selling price is 43 million VND / ton, 26% higher than the annual average.
Besides the rubber segment, Phuoc Hoa has also promoted the industrial zone real estate segment in recent years. Business leaders assessed that investment attraction in industrial zones in Binh Duong province mainly came from Japan, Korea, Singapore, China … However, due to the Covid-19 epidemic in the first months of the year, it is difficult to attract investment.
Therefore, the Board of Directors plans to submit parent company revenue plan to VND 1,921 billion, down 13.6%; profit before tax 751 billion; 35% off.
Dong Phu Rubber also sets a business plan in 2021 based on the average selling price of VND33.3 million / ton, down 6% compared to the implementation of 2020; output consumption 13,000 tons, down 14%. Revenue from rubber consumption and services reached 821 billion VND, gross profit was 187 billion VND; increase 6% and decrease 8% compared to the previous year.
Although in January recorded an average selling price of 46.3 million VND / ton, Tay Ninh Rubber sets a business plan for 2021 based on an average of 33 million VND / ton, down 5% compared to the average of the whole year. 2020. Accordingly, the target of total revenue is 301 billion, down by 30%; profit before tax 57 billion, down 49%.
Tan Bien Rubber Company (UPCoM: RTB) plans to consume 9,500 tons by 2021, down 32% from 2020; revenue from rubber consumption is 304 billion dong, down by 33%. Particularly for the first quarter, the enterprise expects to consume 1,625 tons, implementing 17% of the year plan; revenue is 66 billion, reaching 22% of the plan; average selling price is 40.74 million dong / ton.
