Wednesday 23 October 2013

Rubber exports set to double

Rubber exports are set to soar, and could even double within three years, say some industry experts. Plans to diversify the rubber market and improve the quality and added value of the product are being studied following a national export strategy workshop held from October 7 to 9.

But Myanmar is far from posing a threat to the world’s top rubber producer, Thailand. The rubber sector has been growing rapidly since 2005, but still needs to improve the quality of its product and to develop export strategies, said U Khaing Myint, secretary general of the Myanmar Rubber Planters’ and Producers’ Association.

“I think production could double by 2016. But we exported only 160,000 tonnes last year, while Thailand exported 3.7 million tonnes,” he said.

About 70 percent of Myanmar’s rubber exports go to China, Malaysia, Korea and Singapore, leaving only 8pc for local use. Throughout the country some 1,430,000 acres are devoted to rubber, though latex production occupies just 520,000 acres, the association says.

Paul Baker, chief executive of International Economics, noted that Myanmar rubber had huge potential, but relied too much on the Chinese and Malaysian markets. Its product was too low-grade and needed diversification.

“We’re looking at how we can upgrade and add value to the product. Thailand is more diversified in terms of both products and market,” he told The Myanmar Times.

Because of its quality, the price of Myanmar rubber is far lower than the world rubber price, and despite the lifting of sanctions, Myanmar can export only 20 tonnes of rubber to Europe, said U Khaing Myint.

“The world price is US$2500 per tonne this week, but we can get less than $2200. We export RSS1, RSS3, RSS5, MSR20 and MSR50 grades of rubber, mostly RSS3 and MSR20,” he said.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/8509-rubber-exports-set-to-double.html 




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