[Natural Rubber]: Rubber Weekly Review (October 17)

Figure 1: Shandong market price of STR20 MIX Figure 2: Zhejiang market price of ordinary bulk imported from Thailand

dry rubber

This week, the main rubber contract remained in a small volatile trend, and the main contract basically remained at around 18000 yuan/ton. In the upstream producing areas, the overall supply weather has temporarily improved in the short term, and the quantity has begun to gradually increase slightly. In terms of downstream demand, with the arrival of blizzard weather in the Mohe area, driving demand for downstream snow tire replacement, demand may improve in the fourth quarter. As of now, the trading atmosphere in the natural rubber spot market in China is general, with actual order negotiations being the main focus, and the downstream is cautious and wait-and-see. It is expected that the natural rubber market may remain weak in the near future.

natural latex

This week, the price of offers on the natural latex spot market in China fell, and traders 'enthusiasm for offers was still acceptable. As the global natural rubber producing areas successively entered strong production, the supply side was expected to strengthen, bearish sentiment on the market increased, and there was obvious resistance to high-priced transactions in the market. Some traders lowered their offers to promote goods delivery. Downstream product companies were more cautious in purchasing in the market, and there were few active inquiries, and only maintained small orders needed.

Market outlook forecast:

1. The seasonal growth in raw material output in foreign production areas is expected to be obvious, and rainfall should continue to be paid attention to;

2. It is expected that the operating rate of tire sample companies will improve next week;

3. The inventory in Qingdao, China continues to be removed from the warehouse;

4. Exchange rate, Federal Reserve interest rate cuts, etc.