Myanmar rubber price has dropped further down to 600 kyats (US70cent) per pound, as its demand from China, EU and other countries fell, according to Myanmar Rubber Planters and Producers Association (MRPPA).
The rubber export price has been falling since last year. It has plummeted from above US$3500 per tonne last year to US$3000 now, subsequently causing local prices drop.
“Demand [fro Myanmar rubber] from China and EU has dropped, leading to a fall in both local and export prices,” Khine Myint, Secretary of MRPPA, said.
Compared to last year, the local price of Ribbed Smoked Sheets (RSS-5), a kind of processed rubber, has plunged from K1400 a pound to K1000 this year, while RSS – 3 price has fallen from K1500 to K1060 and RSS – 1 from K1700 to K1100 receptively, Khine Myint explained.
During the fiscal year 2011-2012, Myanmar produced 128,000 tonnes of rubber, and exported 78,000 tonnes earning a total of US$311.2 million. In this fiscal year 2012-2013, export volume leaped up to 79,000 tonnes, while earning shrank and only US$233 million was totally achieved, according to the statistics. Meanwhile, production has also suffered from bad weather this year, he added.
Ninety eight percent of world rubber production takes place in Asia, and Myanmar was once eighth largest producer among the Asian countries in 2011.