The International Rubber Study Group announced that demand for natural rubber will continue to grow until 2019. Rubber consumption this year is forecast to be nearly 10.34 million tonnes, a year-on-year increase of 8 percent.

The rubber export volume of Thailand, Indonesia and Malaysia, which accounts for 70 percent of the world’s total rubber exports, will fall 6 percent due to a succession of floods and drought caused by El Nino this year.

The scarcity in supply will cause the rubber prices to increase sharply on the world market. Vietnam’s rubber price will increase into the next quarter, especially since China has reduced its import tax on rubber.

Last year, Vietnam shipped more than 726,000 tonnes of rubber, earning US$1.2 billion. Its principal markets are China, Malaysia and Taiwan.