daily11-dec13-2019-akk01

Imports down by $120 mln last month, reports MoC

The value of Myanmar’s imports between 1 and 29 October of the current mini-budget period 2021-2022 (October-March) sank to $1 billion, which reflects a drop of $121.98 million compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at US$1.12 billion the last FY2020-2021. The imports of capital goods declined last month, while the other import groups (consumer, intermediate goods, and CMP businesses) witnessed a slight increase.

Last month, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country. Their import value was estimated at $170.18 million. The figurewas over $229.5 million lower than those values registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $262.38 million, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $3 million compared with the same period in the previous FY.

Intermediate goods make up the largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials climbed up to $413 million from $326.4 million registered during the year-ago period. During the same period, raw materials worth over $153 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing an increase of $26.48 million compared with last FY. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Rubber price unlikely to fall on rising demand, Kyat depreciation

The price of rubber is unlikely to drop as long as there is a steady demand and Kyat devaluation against the US dollar continues, according to rubber traders. The rubber was offered at a minimum price of K700-K800 per pound in the previous years, whereas it is priced at about K970-K980 per pound at present. The price hit above K1,000 per pound in early October 2020. Then, it dipped slightly owing to the Kyat revaluation in the local forex market. Despite the drop in rubber price, the prices of cement, acid and other inputs used in rubber processing are rising, traders said.

Chinese authorities from Yunnan Province, which is close to Myanmar’s Chinshwehaw border in Shan State, gave the go-ahead to import the four industrial crops from Myanmar, including sugarcane, rubber, tragacanth gum and cotton. As a result of this, the trade channel is reopened again. The rubber price is possible to fluctuate around K1,000 per pound. China usually purchases Local 3 and RSS 5 varieties which are mainly produced in Myanmar, a trader shared an opinion. The rubber-tapping season started in September and the natural rubber is flowing into the market.

However, the price is not possible to fall to K700-K800 per pound on account of growing demand and Kyat depreciation on the US dollar. Rubber is primarily produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per the 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar, with Mon State accounting for 497,153 acres, followed by Taninthayi Region with 348,344 acres and Kayin State with 270,760 acres. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the Myanmar Rubber Planters and Producers Association. Myanmar’s rubber export generated more than US$425.25 million as of August (October-August) of the financial year 2020-2021.

Source: The Global New Light of Myanmar