Rubber market sees price persistence

MvgC9y0u IMG 2 sskm
Rubber sheets are under sunray to produce sun dried rubber and collection of rubber latex is seen at a rubber plant.

The price of rubber hovers around K1,200 per pound in the first week of December, according to the rubber market in Mon State.
The prevailing prices are K1,200 per pound of sundried local 3 and K1,220 per pound of Ribbed Smoked Sheet Local 3.
The price of rubber hit K1,600 per pound in the third week of September 2022. Thereafter, the prices showed a gradual decline. In November, the price fluctuated a lot, with the maximum price of K1,300 per pound for sundried rubber and K1,320 for RSS3 on 8 and 9 November and the lowest price of K1,090 per pound for sundried rubber and K1,110 for RSS3. The prices became stable at the end of the month.
Global demand for rubber, rubber production of the Southeast Asian nations and the market supply are contributing factors to the rubber price condition of Myanmar.
Additionally, the foreign exchange rate affects the price as a weaker domestic currency stipulates exports.
According to the meeting 66/2022 of Foreign Exchange Supervisory Committee, export earnings of some items can be made in Chinese Yuan and Thai Baht in addition to the US dollar.
The CBM’s notice dated 18 November takes effect on those export items; various pulses (green gram, black gram, chickpea and pigeon pea), edible oil crops (peanut, sesame seeds), corn, rubber, fishery products (fish, shrimp, crab and eel) and livestock products (live cattle, hides, frozen meat and dried meat).
The traders need to apply for a licence to make Yuan or Baht payment. According to the US dollar policy, 65 per cent of earnings must be exchanged to local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or transfer or sell them on to Authorized Dealers or others with an over-the-counter rate within one month.
This directive came into effect starting from 21 November, the CBM stated.
The rubber price in Mon State, a major rubber production state in Myanmar, is positively related to those factors as well, the traders elaborated.
Rubber is commonly produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar, with Mon State accounting for 497,153 acres, followed by Taninthayi Region with 348,344 acres and Kayin State with 270,760 acres.
Seventy per cent of rubber produced in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries.
Myanmar bagged more than US$449 million earning from rubber exports in the previous financial year 2020-2021.—GNLM

Share this post
Hot News
Hot News