Cambodian rubber exports rise in Q1 2020

A report from the Cambodian Ministry of Agriculture, Forestry, and Fisheries shows that Cambodia’s rubber exports increased by 10% in the first quarter of 2020 compared to 2019.

In 2019, Cambodia exported 282,071 tonnes of dry rubber (worth $377 million), representing a 30% increase from 217,501 tonnes in 2018. The Ministry also noted that rubber prices showed a decrease.

Between January and March 2020, Cambodia exported 53,057 tonnes of rubber at an average price of $1,397 per tonne, reflecting a 1.2% decrease. Around $74 million in revenue was generated in Q1 2020.

However, The Phnom Penh Post reports that rubber prices have dropped further from $1,300 to $1,100 per tonne this year. They highlight the challenges exporters face in moving shipments amid the current economic climate.

Trade disruptions caused by cross-border restrictions in response to COVID-19 began impacting revenue in March, making Q2 an important period to assess.

China, one of the biggest importers of Cambodian rubber, has reduced its demand due to COVID-19 restrictions. China is the world’s largest rubber consumer, accounting for 41% of global total output. Other key export markets for Cambodia include Malaysia, Vietnam, and Singapore.

The Phnom Penh Post added that latex prices will "continue to decline until next year," according to a report by Research and Markets.

In total, Cambodia has 405,485 hectares of rubber plantations, with 250,750 hectares considered “cash crops.”