Rubber price increased by over 25%, exports increased by 110% According to the report of the Ministry of Industry and Trade, rubber exports in the first two months of the year recorded 320,000 tons, a strong increase of 90%; the value reached 516 million USD, up 110% compared to the same period last year. In February alone, rubber exports reached about 130,000 tons, valued at 211 million USD; respectively increased by 68% in volume and 86% in value compared to the same period last year. Vietnam mainly exports natural rubber to China, India, and South Korea, with the Chinese market alone accounting for up to 76%. In 2020, Vietnam's rubber export turnover to this market reached 1.78 billion USD, up 18.1% compared to 2019; volume of 1.36 million tons, up 17.3%. Not only that, the price of natural rubber also recorded positive signs. The average export price in February increased by 0.9% compared to January 2021 and increased by 10.9% compared to the same period last year to 1,623 USD/ton. Dong Phu Rubber Company (HoSE: DPR) reported that the average selling price of rubber in the first two months of the year reached 46 million VND/ton, up 25.5% compared to the same period last year. Of which, export and entrusted export prices were 43.37 million VND/ton; domestic consumption price 48.2 million VND/ton. Tay Ninh Rubber Company (HoSE: TRC) recorded an average selling price of 46.3 million VND/ton, up 35% compared to the average level in 2020. The futures price of rubber on the Tokyo market recorded a strong increase to nearly 330 JPY/kg in January and then cooled down, as of March 12 reached 272 JPY/kg, more than double compared to the record low of 130 JYP/kg set in April 2020.

According to the forecast of the Association of Natural Rubber Producing Countries (ANRPC), the demand for rubber in the coming time will increase as the Chinese economy - the world's leading rubber consumer - continues to improve, especially in 2021. At the same time, car manufacturers increasing production also leads to an increase in natural rubber demand. Meanwhile, supply may be disrupted due to weather factors, and production in major exporting countries such as Thailand, Indonesia, Vietnam, and Malaysia may decrease when winter begins, rubber trees shed leaves and yield low latex. Therefore, rubber selling prices are expected to continue to rise. The International Rubber Study Group (IRSG) forecasts that global natural rubber demand in 2021 will recover thanks to the growth of the commercial vehicle segment, mainly due to the market of emerging countries. Meanwhile, synthetic rubber demand in 2021 is forecast to increase by 10.2% compared to 2020 due to strong demand for gloves and other products during the pandemic. Businesses plan for reduced profits In the report sent to the annual general meeting of shareholders, the leadership of Phuoc Hoa Rubber (HoSE: PHR) said that the advantage is that the selling price of rubber latex in the early months of the year is quite high. However, the overall assessment for the whole year, Phuoc Hoa's leadership believes it continues to be a difficult year, from 2021 onwards rubber replanting projects are not exempt from land rent in the basic investment phase, and export conditions are limited when the largest export market - China shows signs of slowing down after strong purchases in the last quarter of the year. Accordingly, the company sets a consumption plan of 34,000 tons, an increase of 7%; average selling price of 34 million VND/ton, up 2% compared to the 2020 implementation level. In the first quarter alone, the company targets to consume 6,130 tons of dry latex, achieving 18% of the annual plan; average selling price of 43 million VND/ton, 26% higher than the average level of the year. In addition to the rubber sector, Phuoc Hoa in recent years has also strengthened the industrial park real estate segment. The company's leadership assesses that investment attraction into industrial parks in Binh Duong province mainly comes from Japan, South Korea, Singapore, China... However, due to the impact of the Covid-19 pandemic in the early months of the year, investment attraction faced difficulties. Therefore, the Board of Directors plans to present to shareholders a plan for the parent company's revenue of 1,921 billion VND, down 13.6%; pre-tax profit of 751 billion VND; down 35%. Dong Phu Rubber also sets a business plan for 2021 based on an average selling price of 33.3 million VND/ton, down 6% compared to the 2020 implementation level; consumption volume of 13,000 tons, down 14%. Rubber consumption and service revenue reached 821 billion VND, gross profit of 187 billion VND; respectively increased by 6% and decreased by 8% compared to the previous year. Although January recorded an average selling price of 46.3 million VND/ton, Tay Ninh Rubber sets a business plan for 2021 based on an average level of 33 million VND/ton, down 5% compared to the average level of the whole year 2020. Accordingly, the total revenue target is 301 billion VND, down 30%; pre-tax profit of 57 billion VND, down 49%. Tan Bien Rubber Company (UPCoM: RTB) plans for 2021 to consume 9,500 tons, down 32% compared to the 2020 implementation level; rubber consumption revenue of 304 billion VND, down 33%. In the first quarter alone, the company expects to consume 1,625 tons, achieving 17% of the annual plan; revenue of 66 billion VND, achieving 22% of the plan; average selling price of 40.74 million VND/ton.