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Rubber price unlikely to fall on rising demand, Kyat depreciation

by TRADING

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

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Trade deficit shrinks to US$46.6 mln over eight months

by TRADING

Myanmar’s trade gap has significantly narrowed to US$46.6 million between 1 and 29 October of the current mini-budget period 2021-2022 (Oct-Mar) from just $63.05 billion registered in the corresponding period of the 2020-2021 FY, according to data provided by the Ministry of Commerce. The decrease in trade deficit is attributed to the drastic drop in imports in October 2021. Last month, Myanmar’s external trade plummeted to $1.95 billion from $2.18 billion recorded in the year-ago period. While exports were estimated at $953.37 million, imports were valued relatively high at $10 billion this mini-budget period.

Compared to the FY 2020- 2021, exports showed a drop of over $105.59 million, while imports fell by $121.9 million. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tighten the border security and restrict the trading in certain border areas. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies much on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items while boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

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4 million doses of Sinopharm vaccine in sixth batch from China arrives in Yangon

by COVID

OF 24 million doses of Sinopharm COVID-19 vaccines purchased from the People’s Republic of China, the last 4 million doses arrived at the Yangon International Airport yesterday and were received by the team led by the head of Yangon Region Medical Services/ Public Health Departments. These vaccines will be distributed to regions and states based on the requirement, via road transport or with the help of the Tatmadaw (Air) and Myanmar airways by maintaining the cold chain.

With the newly arrived COVID-19 vaccines and the existing ones, about 50 per cent of the target groups will be fully vaccinated twice by December 2021, and it is also reported that arrangements are being made to get more vaccines available to the remaining population. As of 6 November 2021, 8.24 million people have been fully vaccinated while 5.65 million people have received the first dose of the COVID-19 vaccine in respective regions and states in Myanmar, making the total dose 22.15 million.

As a measure to prevent and control the spread of COVID-19, the Ministry of Health is administering the COVID-19 vaccines to the target groups. The people are urged to receive the COVID-19 vaccines, and those who have already received the first dose are encouraged to go to the nearest immunization centres and received the second dose on the scheduled immunization date or near the due date, as well as to actively participate in the vaccination activities.

Source: The Global New Light of Myanmar

Fuel oil imported with CBM exchange rate to distribute at reasonable price

by ENERGY

US$53.4 million worth of fuel oil has been imported with the Central Bank of Myanmar (CBM) exchange rate to distribute at a reasonable price, according to the Consumer Affairs Department. The CBM has already sold $53.4 million to our Myanmar Petroleum Trade Association (MPTA). But, they still have some dollars to withdraw from the bank. Currently, the retail stations are still selling the $20 million worth of fuel oil. They are also making effort to sell the remaining over $33 million worth of fuel oil through the retail stations. They are also carrying out the distribution plan, said an official from the Consumer Affairs Department.

MPTA, in cooperating with the Ministry of Commerce has sold fuel at a fair price since 22 September, which is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar. The Consumer Affairs Department stated that more than 51 million litres of fuel oil were sold at a reasonable rate between 22 September and 2 November 2021. Out of them, the association ended over 19 million litres of 92 Ron, over 12 million litres of diesel and over 18 million litres of premium diesel. The fuel oil at the fairer price is available at 229 petrol-filling stations in Yangon, Mandalay, and Nay Pyi Taw cities and Mon, Shan, Kachin, Kayin and Rakhine states and Sagaing, Bago, Magway and Ayeyawady and Taninthayi regions.

If the consumers find the shops that are not being sold at the fixed price, they are urged to report to the Working Committee on Ensuring the Smooth Flow of Trade and Goods, calling 09-664075683, 09-664596327 and 09-676320816, to Yangon consumer affair department 01- 250270 and Myanmar Petroleum Trade Association 09-421006794. The fuel oil was pegged at around at K590 per litre for diesel, K605 for premium diesel, K590 for Octane 92 and K610 for Octane 95 in early February 2021 in the domestic retail market. Then, it strangely climbs up to K1,340 for diesel, K1,355 for premium diesel, K1,420 for Octane 92 and K1,4850 for Octane 95 at present. There is a significant price gap of K700-800 per litre, according to the local fuel oil market. The devaluation of the local currency is the main reason for the oil price hike in the domestic market. At present, a dollar is worth around K1,900 in the domestic foreign exchange market. Normally, Myanmar yearly imports around 600,000 tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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Domestic gold price rises up to over K1.8 mln per tical

by ECONOMY

The price of domestic gold bar rose up to above K1.8 million per tical (approximately 16.33 grammes), according to Yangon Gold Entrepreneurs Association (YGEA). The price of domestic gold is high right now because of the depreciation of the Myanmar Kyat in the local foreign currency market. Currently, a US dollar exchange rate mounted up to the highest of around K1,980 per dollar in the local foreign market, while the domestic bar gold gained up to K1,820,000 per tical in the market.

On 28 September, the exchange rate on the US dollar hit an all-time high of over K3,000 in the domestic exchange market, while the price of a pure gold metal jumped accordingly to a record high of K2.22 million per tical (0.578 ounce, or 0.016 kilogramme), according to the Yangon Region Gold Entrepreneurs Association (YGEA). However, it gradually dropped to around K1,800 per dollar by the end of October and the local bar gold price also fell to K1,750,000 per tical. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February.

In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price was registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June). It fluctuated between K1,562,300 (26 July) and K1,587,000 (9 July). The price of gold reached the lowest of K1,572,800 (3 August) and the highest of K1,698,000 (31 August). The price of pure gold metal hit a fresh peak of K2,220,000 per tical (28 September) and it was priced the lowest of K1,703,500 per tical (1 September).

Last month, the rate fluctuated between the highest of K2,030,000 (1 October) and the lowest of K1,750,000 (27 October), gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal price moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019. 

Source: The Global New Light of Myanmar

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As of 2 November, 7.39 million people have received two full doses of the COVID-19 vaccine

by COVID

As of November 2, 7.39 million people have received two full doses of the COVID-19 vaccine in Myanmar, according to the Ministry of Health. As of November 2, 7399,986 people (7.39 million) had received two full doses of the vaccine; 6084977 people (6.08 million) completed one planting; According to the Ministry of Health, a total of 13484963 people (13.48 million) have been vaccinated and more than 20 million have been vaccinated.

As of October 23, two million COVISHIELDs purchased by the Ministry of Health have been delivered. Sinopharm 20 million; Two million Sinovac has already reached a total of 24 million. More than eight million COVID-19 vaccines have been donated by India and Russia. Vaccines have been reduced to 10 years from the previous COVID-19 vaccine for those over 55 years of age, and those over 45 will be vaccinated from October 17. Target groups have been expanded to include the COVID-19 vaccine since September 14. 

People with disabilities Members and family members of ethnic armed groups. People from migrant groups and temporary camps; It is being given to people with chronic and non-communicable diseases and is currently being extended to those over 45 years of age. The COVID-19 vaccine has been available in Myanmar since January 2021. People should receive the full dose of the COVID-19 vaccine they received. The Ministry of Health urges those who have received the first dose to visit the nearest immunization regimen on or near the scheduled date of the second immunization and actively participate in the immunization and immunization activities.

Source: Daily Eleven

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Of the ASEAN countries surveyed in October, Myanmar was the least productive, according to the survey

by MANUFACTURING

Of the ASEAN countries surveyed in October, only Myanmar saw a decline in manufacturing conditions, according to the IHS Markit ASEAN Manufacturing PMI (Manufacturing Purchasing Manager’s Index) released on November 2. The survey was conducted in seven ASEAN countries such as Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam and Myanmar. They have seen progress in a wide range of countries except Myanmar. Indonesia topped the survey with a record PMI, followed by Singapore, Malaysia and Thailand. Malaysia and Vietnam are following, with the last two countries reporting the first increase in their output since May. 

The Philippines and Thailand also saw record improvement in October, said Lewis Cooper, an economist at IHS Markit. ASEAN’s manufacturing PMI rose to 53.6 in October, signaling the first growth in ASEAN manufacturing conditions since May 2021 (five-month period). When statistics were compiled for the survey in 2012. It has become one of the fastest rates since July, according to the survey. Among the ASEAN manufacturing PMIs in October, Indonesia topped the PMI by 57.2. With a PMI of 54.5, Singapore is firmly established in the manufacturing sector. Malaysia has a PMI of 52.2. It is showing the fastest progress since April. Vietnam has a PMI of 52.1 in 2021. 

For the first time since May, the situation has shown moderate improvement. The Philippines and Thailand saw only a tenth increase in their manufacturing sectors. The Philippines has a PMI of 51 and Thailand has a PMI of 50.9. Finally, the survey found that Myanmar was the only ASEAN country to show a decline in operating conditions in October. Myanmar’s PMI of 43.3 indicates the weakest decline in 10 months since January, but a sharp decline. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the survey, production in ASEAN was record-breaking in October, both in terms of production and new orders. Purchasing Manager’s Index New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. The survey is based on survey data collected by industry by the IHS Nikkei and sponsored by the Japan-based Nikkei Media Group.

Source: Daily Eleven

Over 51 mln litres of fuel oil sold at fairer prices within one and half months: CAD

by ENERGY

The Consumer Affairs Department stated that more than 51 million litres of fuel oil were sold at the subsidized rate between 22 September and 2 November 2021. Starting from 22 September, the total volume of fuel oil that is sold at very reasonable rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar, intending to offer fairer rates through the relevant association. Over 19 million litres of 92 Ron, 12 million litres of diesel and 18 million litres of premium diesel have been sold.

The fuel oil at the fairer price is available at 229 petrol-filling stations in Yangon, Mandalay, and Nay Pyi Taw cities and Mon, Shan, Kachin, Kayin and Rakhine states and Sagaing, Bago, Magway and Ayeyawady and Taninthayi regions. Consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under the public distribution system. If any overcharging is found, the consumers can complain about it through the contact numbers 09664075683, 09664596327, 09687635943 and 09676320826 of the National Trade Facilitation Committee, (01250270) of Yangon Region Consumer Affairs Department and 09421006794 of the Myanmar Petroleum Trade Association.

The fuel oil was pegged at around at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbs up to K1,425 for Octane 92, K1,490 for Octane 95, K1,370 for diesel and K1,380 for premium diesel at present. There is a remarkable price gap of K700-800 per litre, according to the local fuel oil market. A dollar is worth K1,900 in the local forex market. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce stated. 

Source: The Global New Light of Myanmar

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Myanmar maritime trade up by $115 mln as of 22 Oct

by TRADING

The value of Myanmar’s maritime trade between 1 and 22 October of the current mini-budget period for 2021-2022 climbed up to US$1.166 billion, which reflected an increase of $115 million as against the last FY. The figures rose from $1.05 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $560 million, imports have registered $300.45 million.

Compared to the same period in the 2020-2021 financial year, imports fell by $144.7 million, while exports registered an increase of $259.7 million. Meanwhile, the value of trade through the border this FY was estimated at $234.9 million, which plunged drastically from $613 million registered last FY. Myanmar’s sea trade generated $19.8 billion out of an overall trade value of $29.5 billion in the last FY2020-2021, the Ministry of Commerce’s statistics indicated.

Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and industrial raw materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminals and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (deadweight tonnage) in the past five months (February-June) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River. 

Source: The Global New Light of Myanmar

Stock market goes down in October

by ECONOMY

The shares traded on the Yangon Stock Exchange (YSX) declined in October, with K561 million worth of 99,837 shares of the six listed companies, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures extended further drops to K110 million worth of 19,816 shares in March 2021. Then, the market slightly rose in April with K280 million worth of 42,964 shares. The stocks were maintained in the bull market in May with 78,642 shares worth K432.448 million as well. In June, 79,296 shares worth K430.285 million were traded on the exchange. Then, the volume of shares traded in the equity market plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million.

It climbed up in August 2021 compared with those registered in the last two months, with over K300 million worth of 49,191 shares traded on the exchange. It edged up to a recordhigh in September, with over K825 million worth of 193,353 shares, the YSX’s monthly report showed. Last month, the shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH), the Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd. (AMATA) were traded in the equity market. The share prices per unit were closed at K8,900 for FMI, K3,200 for MTSH, K7,800 for MCB, K19,500 for FPB, K2,700 for TMH, K2,950 for EFR and K5,000 for AMATA, respectively. The stock markets worldwide have reported their largest declines since the 2008 financial crisis.

Similarly, the local equities market was also scared by the COVID-19 crash in the previous months, a market observer points out. People like to keep emergency savings and purchase the safe-haven asset gold, rather than make investments amid the COVID- 19 crisis and current political conditions. Unexpectedly, people turned to the stock market when the prices of gold remarkably gained in September. However, the stock market went down in October, he continued. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange reached a peak of K1.48 billion in February, whereas trading on the exchange registered an all-time low of K552.9 million in November due to the COVID-19 resurgences in Myanmar, the exchange’s monthly report showed.

A total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the exchange in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. Furthermore, YSX launched a pre-listing board (PLB) on 28 September 2020 to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, YSX stated. The YSX was launched four years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.

Source: The Global New Light of Myanmar