Rubber firms report surge in profits
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Rubber prices have soared by 30-50 percent this year, driving up profits for companies in the industry by triple digits in Q3.
Subsidiaries of the Vietnam Rubber Group such as Daklak Rubber JSC, Tan Bien Rubber JSC, Ba Ria Rubber JSC, Phuoc Hoa Rubber JSC, and Dong Phu Rubber JSC saw profits surge by over 300 percent.
Thong Nhat Rubber reported a rise of 466 percent.
Vietnam’s rubber exports increased by nearly 24 percent to $970 million in Q3, according to data from the Ministry of Industry and Trade’s import-export department.
Exports in the year-to-date were up 50 percent to $2.17 billion.
A recent report by the Association of Natural Rubber Producing Countries said global demand for natural rubber would grow by 9 percent to more than 14 million tons this year.
China, which buys over 70 percent of Vietnam’s rubber exports, is expected to import 1.7 million tons between September and December and another two million tons in the first four months of 2022, according to the ministry.
Questions & Answers
Q.What is the main factor driving the increased profits for rubber companies?
What is the main factor driving the increased profits for rubber companies?
The significant increase in rubber prices, which have soared by 30-50 percent this year, is the primary driver behind the triple-digit profit surges for companies in the industry.
Q.How much did Vietnam's rubber exports increase in Q3 and year-to-date?
How much did Vietnam's rubber exports increase in Q3 and year-to-date?
Vietnam's rubber exports increased by nearly 24 percent to $970 million in Q3. Year-to-date, exports were up 50 percent, reaching a total of $2.17 billion.
Q.Which country is the biggest market for Vietnam's rubber exports?
Which country is the biggest market for Vietnam's rubber exports?
China is the largest market for Vietnam's rubber exports, purchasing over 70 percent of the country's total. It is expected to import substantial volumes in the coming months.
Q.What is the projected growth in global demand for natural rubber this year?
What is the projected growth in global demand for natural rubber this year?
A report from the Association of Natural Rubber Producing Countries indicates that global demand for natural rubber is expected to grow by 9 percent, reaching more than 14 million tons this year.
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