Friday, May 9, 2014

Exports of rubber up, but prices on the fall

9 May 2014

Despite a large increase in exports during the first quarter, natural rubber producers continue to see declining revenues, as world prices fall further. The latest figures from the Ministry of Commerce show natural rubber exports grew 26% during the first quarter of 2014.

Meanwhile, overall revenue from natural rubber sales fell 28%. Last year, rubber was selling at about $2,800 per ton, but early this year, surprisingly, the price has dropped to as low as $1,980 per ton. Prices had been on the decline since 2011. An end to the sector’s price slump could not be foreseen.

A lack of infrastructure meant Cambodia had little choice but to sell natural rubber straight to the market despite falling prices. The reason exports are increasing [despite low prices] is because Cambodia does not have processing plant or warehouse to stock the harvested rubber. Cambodia produced 85,000 ton in total of raw natural rubber in 2013.

Source:
http://www.phnompenhpost.com/business/exports-rubber-prices-fall

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