Posts in category: TRADING

Myanmar’s rubber export earned more than US$240.74 million in the first five months (Oct-Feb) of the current financial year 2020-2021, the Ministry of Commerce’s data showed. Mon State’s rubber market data showed that the price of domestic natural rubber jumped to nearly K1,000 per pound as global rubber is in a bull market. Natural quality rubber was priced at K750 per pound in late January 2021, whereas it soared to above K900 per pound (for RSS1 and RSS3) in May. Myanmar’s natural rubber price tracks the global rates, Myanmar Rubber Planters and Producers Association (MRPPA) stated. The pandemic hinders international producers. Consequently, natural rubber prices went into a bear market in 2020. However, the natural rubber hit up to K1,000 per pound at the end of 2020. Myanmar’s rubber is priced lower than the international rate owing to raw material variability.

Rubber price stood at US$2,600 per tonne in 2020-end in global market, whereas Myanmar rubber fetches only $2,100 per pound. Uniformity is an important quality measure. Tyre manufacturers do not need to change the formula in the production process because of raw material risks. Product uniformity can bring sustainable development for both sides. If there is no raw material variability and risk factor, the price will automatically go up, MRPPA stated. Myanmar’s rubber body is endeavouring to export its natural rubber with the country of origin labelling to external markets. Nevertheless, illegal exports are happening, and it contributes to revenue losses, according to MRPPA. Thailand is buying Myanmar’s natural rubber at a good price through the black market in Payathonezu, Kawthoung and Myeik towns. As a result of this, the government needs to control illegal rubber exports strictly, MRPPA stated.

Thailand re-exports those illegally imported rubber under its origin label. That is why we want to earn the country of origin label, according to MRPPA. Additionally, natural rubber is estimated at K1,300 per pound in Thailand, whereas Myanmar’s rubber is priced about K400 lower than their prices. Myanmar’s rubber has raw material variability. It may lead to quality compliance issues, process inconsistency, productivity problem and high input cost. Meanwhile, Thailand’s rubber is priced at a premium due to quality and consistency. Thailand’s rubber fetches US$2,500 per tonne, while the global rate is at $2,200 per tonne. Rubber is primarily produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar. Mon State accounts 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 made 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 MRPPA. At present, Myanmar is exporting only rubber sheets owing to a lack of machinery and technology. Export rubber varieties include synthetic rubber, ribbed smoked sheet RSS 1,3,5, Myanmar Standard Rubber MSR-20, Technically Specified Rubber TSR-20, and Crepe Rubber. About 150,000 tonnes of rubber was exported in the 2017-2018 financial year. Myanmar shipped over 190,000 tonnes of rubber, with an estimated value of $250 million, in order to external markets in the 2018-2019 financial year, an increase of 41,000 tonnes which helped boost earnings by $60 million compared to the year-ago period, according to data released by the Ministry of Commerce. Myanmar exported over 200,000 tonnes of natural rubber to foreign countries last FY2019-2020, generating an income of over $200 million. 

Source: The Global New Light of Myanmar

As the country can only produce about 400,000 tonnes of edible oil a year, about 800,000 tonnes of edible oil is imported annually to meet domestic consumption, according to a May 25 meeting to coordinate the import and distribution of safe and healthy edible oil. According to the Ministry of Commerce, about 1.2 million tonnes of edible oil is consumed annually in the country and production is around 400,000 tonnes, with about 800,000 tonnes imported annually. U Myint Cho, Director-General of the Department of Consumer Affairs said.

Efforts are being made to bring imported edible oils in line with the standards and quality set by the government, and efforts are being made to ensure that consumers can purchase safe and healthy edible oils at reasonable prices. Relevant Ministries need to provide the necessary technologies for the development of the oil industry and the supply of raw materials, warehouses, dryers and machine parts are also being made in collaboration with the private sector. The state is providing support for the development of Myanmar’s domestic edible oil production sector.

The government will provide loans to get good and pure seeds for oil crops, to the relevant ministries and agencies to increase the use of technology and modern agricultural equipment, increase acreage yield, reduce production costs and improve the production of high quality products that are safe for consumers. It is reported that they are cooperating with organizations. According to the Myanmar Oil Industry Association, there are more than 3,000 officially registered oil refineries and more than 2,000 unregistered oil refineries, for a total of more than 5,000 oil refineries. Myanmar Oil Entrepreneurs Association for Sagaing, Magway Peanuts from Mandalay Region In collaboration with sesame farmers, in the 2018 monsoon, 6,000 acres and to cultivate 3,000 acres in winter and meet half of the country’s oil demand by 2020.

Source: Daily Eleven

China shut the Man Wein checkpoint over one and half month ago, and it remains close in light of the COVID-19, vice-chairman U Min Thein of Muse Rice Wholesale Centre said. Coronavirus cases were detected in Shweli (Ruili) and Kyalgaung precious stone market during late March. It prompted China to restrict border access at the Man Wein checkpoint, a major border crossing between Myanmar and China. At present, the number of positive cases has dropped. Lockdown on the Kyalgaung area has been eased from 4 May.

However, it will be monitored for about three months. Consequently, there is no plan to reopen the Man Wein post. It is still closed. The border closure began on 30 March. Kyalgaung area will be kept under watch for three months even after lifting the lockdown. People still cannot confirm when the crossing will be reopened. Additionally, Man Wein border post is not available for now, according to the negotiation with Shweli’s Foreign Affairs Department. The border post will resume the trade only after drawing up a detailed project report, the Trade Department (Muse 105th mile trade zone) stated.

Once China lifts the restriction, the traders will be spontaneously informed. Owing to the Man Wein post’s closure, major export items such as rice, broken rice, various pulses, fishery products, onion and chilli are delivered to China through Kyin San Kyawt post, a major crossing for Myanmar’s fruit exports, U Min Thein added. However, shipping via Kyinsankyawt post caused traffic congestion and delay. The driver-substitution system was practised in the border area during the first wave of the COVID-19 and it helps lessen the impediments to the trade. Yet, the current restriction exacerbates the border trade, the Muse Rice Wholesale Centre stated. 

Source: The Global New Light of Myanmar

The value of Myanmar’s iron and steel imports for the construction sector is estimated at US$315.6 million in five months (Oct-Feb) of the current financial year, according to Myanmar Customs Department. The figures stood over US$1.19 billion in the past financial year 2019-2020, according to the statistics of the Ministry of Commerce. At present, Myanmar’s steel demand is estimated about 2.5 million tons per year, and 92 per cent are imported. According to MSA, the market is likely to grow up to 5.4 million tonnes per year in 2030.

If Myanmar can fulfil the requirements of local steel consumption and focus on import substitution, the steel industry will strategically contribute to the nation’s interests. Steel consumption includes in calculating economy growth index, Myanmar Steel Association (MSA) stated. Therefore, 11 executive members of MSA established MSA Public Company Limited. They are making efforts to set up iron and steel industrial zone in order to reduce the outflow of US dollar, effectuate the development of the steel industry and assist in the country’s infrastructure building.

Studies for implementing iron and steel industrial zone projects are underway in Ayeyawady and Taninthayi regions and Rakhine and Mon states. The government needs to support the steel sector by granting tax relief and land rights, controlling illegal import, making anti-dumping law come into an effort and formulating steel policy. The steel industry is pivotal in industrial infrastructure building. According to the MSA, this project needs to be implemented for future prospects of the country’s economy. China is the leading supplier of Myanmar’s steel market. Iron and steel are also imported from India and the Republic of Korea.

Source: The Global New Light of Myanmar

As of February of the 2020-2021 fiscal year, China was the largest importer of more than $ 2306 million in the top 10 importers. Singapore is worth more than $ 1,132 million and Thailand nearly $ 800 million, according to the Ministry of Commerce. From October to February of the 2020-2021 fiscal year, Myanmar was the largest importer of goods. Singapore Thailand Indonesia, Malaysia, India South Korea Japan Vietnam and the United States.

In the five months to February of the 2020-2021 fiscal year, the largest imports to Myanmar were from China at 2,306.71 million US dollars; $ 1,132.21 million from Singapore; $ 791.606 million from Thailand; 431.08 million from Indonesia; $ 395.16 million from Malaysia; $ 245.94 million from India; $ 198.84 million from South Korea; $ 171.39 million from Vietnam; Japan imported $ 167.97 million and the United States $ 107.81 million. From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar amounting to $ 5,401.943 million and imports from China worth $ 6,724.335 million.

In the 2019-2020 fiscal year, Myanmar-India trade amounted to more than $ 1.3 billion, down more than $ 130 million from the same period last year. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar exported $ 616.464 million worth of goods to India, while India imported $ 696.937 million worth of goods, with a total trade volume of $ 1,313.401 million.

In the first six months of the 2019-2020 fiscal year, Myanmar’s major trading partners were more than 33 percent with China; Thailand and 13.6 percent; Singapore 9.7%; Japan and 5.3 percent; India and 4%; Pyidaungsu Hluttaw, 34.3% trade with other countries Public Accounts Joint Committee; According to the Findings and Opinion Report No. (8/2020) regarding the first six months report of the National Plan for the fiscal year 2019-2020. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar’s exports were worth $ 3,095.988 million. According to the Ministry of Commerce, Thailand imported $ 5,109.479 million worth of goods worth US $ 2013.486 million.

Source: Daily Eleven

The prices of rice and broken rice exported to China via the Muse land border are falling, said Vice-Chair U Min Thein of the Muse Rice Wholesale Centre. In early April, the broken rice fetched 120 Yuan per bag. The low-quality rice was priced 137-142 Yuan per bag depending on varieties (Ngasein, Thukha and Shintong). Over one month later, the price dipped to 117 Yuan for broken rice and 128-137 Yuan for other rice varieties in May, according to Muse Rice Wholesale Centre. China Customs granted licences to 47 Myanmar companies on 26 February 2021 to legally export the rice to China through Muse land border this year.

The authorized companies for rice export to China increased this year as against last year. However, the permitted volume of rice for exports has not been confirmed yet, he added. Myanmar traders are delivering rice to China through the Muse border under new permits at present. Nevertheless, limited money withdrawal permitted by the private banks is disrupting the rice exports. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries over Q1 (1 October and 15 January) of the current financial year 2020-2021 and earned over US$275 million, Myanmar Rice Federation stated. The border trade handled over 308,000 tonnes of rice, while maritime trade covered over 418,000 tonnes in Q1.

This year, Myanmar has shipped rice to 31 foreign markets so far. China is the leading buyer of Myanmar rice (with 340,000 tonnes), followed by the Philippines (36,000 tonnes) and Poland (14,000). Meanwhile, Myanmar exported broken rice mainly to China (210,000 tonnes), followed by Belgium (46,000 tonnes) and Thailand (6,300 tonnes). Broken rice was placed in 16 foreign markets. Weather changes affected irrigation water resource availability in agriculture. Myanmar Rice Federation (MRF) Chair U Ye Min Aung said that as a result, Myanmar set rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated export volume of over 2.5 million tonnes. 

Source: The Global New Light of Myanmar

Myanmar’s sesame seeds export has earned US$272.79 million in five months (Oct-Feb) of the current financial year2020-2021, according to data released by Myanmar Customs Department. The price of sesame seeds is rising a bit for now owing to the appreciation of the dollar. At present, the black sesame seeds (Samone variety) fetched K120,000-148,000 per bag, and white sesame seeds were priced at K115,000-120,000 per bag, Mandalay depot stated.
Last year, the sesame prices dropped by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts. Consequently, the growers do not make a large profit this year, said a trader from the Mandalay market.

Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is a leading buyer of Myanmar sesame. It is also shipped to markets in Japan, South Korea, China (Taipei), the UK, Germany, the Netherlands, Greece, and Poland, among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Organization. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet.

Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame seed is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports has registered over 96,000 metric tonnes worth $130 million in the financial year 2015-2016, $100,000 tonnes worth $145 million in the FY2016-2017, 120,000 tonnes worth $147 million in the FY2017-2018, 33,900 tonnes valued at $43.8 million in the 2018 mini-budget period, 125,800 tonnes worth $212.5 million in the FY2018-2019 and over 150,000 tonnes of sesame worth $240 million in the previous FY2019-2020. 

Source; The Global New Light of Myanmar

Chairperson U Soe Naing of the Mandalay Region Cattle Exporters Association said that Chinese traders are constantly purchasing about 1,000 cattle on the black market across Myanmar and China. At present, the black market has been more robust. The legitimate market has halted since late 2020. The illegal market is happening. At present, the border trade was illegally carried out like the trade four years ago.

Following about 10,000 cattle stranded in Muse last year, traders embarked on illegal sales. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases, including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Those import criteria do not matter on the black market. Myanmar’s live cattle export is heavily relying on Chinese market due to a good price. However, Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh.

The Ministry of Commerce grants a permit to each company for 100 cattle export, and the permit is valid for three months. The companies can be taken legal actions if they do not sell the cattle during the three months. Live cattle export was allowed in late 2017 to eradicate illegal exports, creating more opportunities for breeders and promoting their interests. Myanmar shipped US$360 million worth of animal products, including cattle, to the external markets in the financial year 2018-2019. The value of animal product exports dropped by $100 million in the 2019-2020FY as against a year ago, following the negative impacts of the COVID-19.

Source: The Global New Light of Myanmar

Myanmar’s rice export to China through the Muse border checkpoint has plummeted recently, said Vice-Chair U Min Thein of the Muse Rice Wholesale Centre. The drop was due to the closure of the Man Wein checkpoint, which is the major place of trading of rice and broken rice between Myanmar and China following the outbreak of COVID-19 positive cases. With the Man Wein checkpoint closing, export items, including rice and broken rice, are being traded through China via the Kyin San Kyawt checkpoint. Earlier, Myanmar exported about 30,000 bags of rice and broken rice to China daily. But now, only about 10,000 bags have been shipped, he added. Previously, about 70 truckloads of rice and broken rice were traded daily through Man Wein checkpoint. Now, only 24 truckloads are traded. The export has dropped one third. Though three truckloads used to go earlier, only one truckload would go now. Earlier, about 30,000 bags of rice and broken rice were traded through the Man Wein checkpoint.

In contrast, now only 10,000 bags are being traded through Kyin San Kyawt checkpoint. Currently, the price of Muse market is 117 Yuans for a bag of broken rice, 128 Yuans for Nga Sein, 129 Yuans for Thuka and 137 Yuans for Shin Tone, according to the Muse Rice Wholesale Centre. The Man Wein checkpoint has been closed for over one month because of the outbreak of COVID-19. According to Muse 105th Trade Zone of the Trade Department under the Ministry of Commerce, China has no plan to reopen it yet. With the declining number of COVID-19 positive patients in the Kyalgaung area, the lockdown restrictions imposed on the Kyalgaung area were lifted starting from 4 May. But, the observation is still going on for another three more months. As a result, the Man Wein checkpoint has not been planned to reopen, according to the announcement of the Muse 105th Mile Trade Zone, the Trade Department on 5 May.

In addition, in coordination with the Shweli Foreign Relations Department, the Man Wein crossing has not been reopened yet. It will reopen only after having the detailed plan, according to the statement. The relevant traders will also be informed if there is an official notification from China to reopen the border. Moreover, according to the Muse Rice Wholesale Centre, China’s Customs authorities granted rice export licenses to 47 Myanmar companies on 26 February 2021. This year, the Chinese government has allowed more rice export licenses to more companies. So, the volume of rice export will increase this year compared to that of the previous year. During the first three months of the current financial year, Myanmar exported over 720,000 tonnes of rice and broken rice worth over US$ 275 million, according to Myanmar Rice Federation. However, Myanmar has expected to export only 2 million tonnes of rice in this FY because the weather changes have affected irrigation water. Consequently, summer paddy cultivation will have to be reduced, said U Ye Min Aung, the Chairman of the Myanmar Rice Federation. Myanmar generated over $ 800 million from rice export in the previous FY — 2019-2020 ending 30 September with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

Myanmar and Thailand, a top neighbouring trade partner among ASEAN, hit bilateral trade worth US$2 billion in the first five months (Oct-Feb) of the current financial year 2020- 2021, indicated the statistics issued by the Central Statistical Organization of the Ministry of Planning and Finance. The ministry reported exports surpassed imports in trade with Thailand, with exports reaching over $1.2 billion and imports valued at over $791.5 million. Thailand has been Myanmar’s largest trade partner among the ASEAN, followed by Singapore and Malaysia.

Thailand accounted for 18.48 per cent of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 19.17 per cent in 2017-2018FY with a trade value of $5.57 billion, 40.38 per cent in 2018- 2019FY with $5.46 billion and over 40 per cent in 2019-2020FY with $5.117 billion, respectively. Exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. Last year, corn exports to Thailand rose significantly as well, the Ministry of Commerce stated.

Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country.

Myanmar is carrying out border trade with Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Meisei border areas, respectively. Among them, Myawady performed the largest trade in border trade with Thailand, followed by Hteekhee. Nevertheless, the border trade is sluggish for now amid the coronavirus resurgences. Consequently, the trade via land border sharply fell in the current FY (2020-2021). Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners.

Source: The Global New Light of Myanmar