Rubber export prices fall

11 Dec 2018 2055 | Business & Trade Fairs

Rubber export prices saw a continuous decrease this year impacted by uncertainties created by the US-China trade war and a surplus of rubber in the international market, insiders said yesterday.

As of last week, rubber prices fell to $1,260 per ton from $1,500 early this year, said Men Sopheak, vice president of Chop Rubber Plantation in Tboung Khmum province.

In the last months of 2016, a ton sold for $1,700, but from January to March of 2017 it traded at $2,200. Prices went down to $1600 in December last year, according to data from the General Directorate of Rubber at the Ministry of Agriculture.

“The fall in prices is caused by the US-China trade war which is putting pressure on China, a big rubber importer, to fight for cheaper rubber prices. This is resulting in an oversupply of rubber in the global market,” he added.

Cambodia’s rubber is exported to Vietnam, Malaysia, and Singapore. The Kingdom does not export directly to China.

Lim Heng, vice-president of An Mady Group, echoed Mr Sopheak’s comments, saying the fall in prices is the result of the US government’s imposition of tariffs on Chinese goods.

“We cannot predict price changes because the world’s economy has changed very quickly. For example, the Trump administration has imposed tariffs on China’s products,” he said.

Meanwhile, he called for the Cambodian government to put mechanisms in place to facilitate the country’s export procedures and attract more investors.