The price of rubber has sustained its upward momentum in the rubber latex collection season due to stronger foreign demand, according to the rubber entrepreneurs.
Rubber plantations will resume starting from mid-September. Although the availability of raw rubber may increase in the rubber latex collection season, the rubber prices are expected to remain strong amid foreign market demand.
Currently, the market demand is rising when the global demands are on the high due to COVID-19. As a result, the rubber prices are inching upwards because there are many purchasing ways despite the closure of border crossings.
“Besides, the rubber products price has also nearly doubled in rubber latex collection season due to rising of foreign exchange currency and devaluation of Myanmar Kyat. The production cost may also hike,” the rubber entrepreneurs pointed out.
The rubber products, which have been on an upward trend since last May, have been trading at a dealing price by buyers and sellers, rather than fixed prices due to lower supplies of raw rubber in the market until August when the rubber farmland closed.
The average price of local-3 rubbed smoked sheet is K1,100 per pound in the rubber market.
Mon State has the largest acreage of rubber in Myanmar with the production of over 240 million pounds of rubber, according to the 2020 official statistics of Mon State Agricultural Department.
Rubber is primarily produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per the 2018-2019 rubber seasons’ 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 348,344 acres and Kayin State with 270,760 acres, according to the MRPPA.
Besides, about 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber made 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 yearly exports over 200,000 tonnes of natural rubber to foreign countries, generating over US$200 million. — Nyein Nyein/GNLM