Ivory Coast heading to be the third largest rubber producer: H1 2022 exports surge 14.5% to 614,000 t

As a global supplier of natural rubber (NR), Cote d’Ivoire is continuously strengthening its position by beating many of its Asian counterparts and traditional rubber producing countries.?The country is poised to become the third largest producer of NR by 2023, positioning next to Thailand and Indonesia, by leaving Vietnam to the fourth position.

Cote d’Ivoire exported 100,000 tonnes of NR during June 2022, up 18.5% from June 2021. The total exports during the first half of the year (Jan-Jun 2022) were up 14.5%, at 614,000 tonnes. Here are seven salient features of NR exports from Cote d’Ivoire during Jan-Jun 2022:

• Block rubber (TSR) constituted 79% of the total quantity of NR exported from Cote d’Ivoire during the first half of this year, followed by latex (20%). Strikingly, cup-lump and such primary forms (HS 400129) constituted only a negligible portion of the exports during the period. Exports during the first half revealed a sharp decline in the shipment of cup-lump and other primary form of NR belonging to HS 400129 (Declined from 100,000 tonnes in Jan-Jun 2021 to 8,000 tonnes in Jan-Jun 2022). This sharp decline is presumably a reflection of the country’s recent capacity addition in TSR processing and the new policy initiative that restricts export of cup-lump. Please refer to the following table for a closer understanding of the emerging trends.

• Malaysia accounted for 23% of the total quantity of NR exported from Cote d’Ivoire during the first half of this year. Malaysia is followed by China (20%) and India (9%). Strikingly, the quantity of exports to Malaysia has sharply fallen during first half of this year compared with the same period in the previous year. On the other side, exports to China and India have zoomed during the same period. More specifically, the destinations of NR exports from Cote d’Ivoire have partly shifted from Malaysia to China and India. This is evident from the following table.

• In the total quantity of NR exported from Cote d’Ivoire to Malaysia during the first half of the previous year (Jan-Jun 2021), 55% was constituted by cup-lump and other primary forms belonging to HS 400129. In sharp contrast, the export basket during the first half of this year (Jan-Jun 2022) is dominated by latex (81%), followed by TSR (15%). Cup-lump and other primary forms constituted only 5% of the exports during the first half of this year. To be more specific, export basket of Cote d’Ivoire to Malaysia has undergone a major shift from cup-lump to latex. Please refer to the following table.

• The quantity of NR exported from Cote d’Ivoire to China is 100% in the form of TSR. In other words, China does not import latex or cup-lump from Cote d’Ivoire. NR Exports to China surged 55.9%, year-over-year, during the first half of this year. The following table summarizes the quantity of NR exported from Cote d’Ivoire to China during the first half of this year.

• Similarly, Cote d’Ivoire exports NR to India in the form of TSR only. Exports to India zoomed 104%, year-over-year, during the first half of this year. Please see the following table for more information.?

Cote d’Ivoire exports NR to the U.S. in the form of TSR only. The figures are given in the following table.

• Cote d’Ivoire has adopted differential pricing strategy in the sales of TSR to different countries in June 2022. The unit FOB value of the exports varied from as low as US$ 135 per 100 kg (In the case of Malaysia) to US$ 165 per 100 kg (In the case of exports to the West). Unit FOB value of the exports was considerably lower in the case of China (US$ 144.9 per 100 kg) compared to that in the case of India (US$ 153.9 per 100 kg). ?Further insights can get from the following table.

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Jom Jacob (Analyst in global natural rubber industry)