[Natural Rubber]: Rubber Weekly Review (November 21)

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

dry rubber

The main rubber contract contract remained volatile at the end of this week, and there was a narrow improvement trend at the end of the week. Judging from the current rubber fundamentals, the weather conditions in the upstream production areas have improved slightly recently, and rubber farmers can carry out rubber tapping operations at full production. In addition, Thailand's production areas are in a relatively prosperous state, and the overall raw materials are in a state of high volume, which in turn drags down raw material prices in a narrow range. In terms of downstream demand, with the implementation of the price increase policy, the actual situation of tire companies in early summer fell short of expectations. While the fundamentals have not changed much, the macro sentiment has improved. Futures rebounded slightly after falling, driving spot offers to fluctuate. There is no further positive stimulus in the macro market. Rubber prices are expected to remain low and volatile.

natural latex

This week, the offer price in the natural latex spot market in China remained relatively stable for most of the time. There was a narrow rise at the end of the week. The futures market stopped falling and rebounded, which boosted the market atmosphere. Ship and cargo prices of upstream processing plants at home and abroad have temporarily stabilized. Coupled with the limited pressure on spot supply in the sales area, the offers of holders are generally stable. Downstream product companies have a certain willingness to bargain hunting and replenish their stocks. Price reduction negotiations are the main focus, and the transaction remains a single negotiation.

Market outlook forecast:

1. The cut-off period for raw materials in China's production areas is approaching, and winter storage in the main production areas should be continued;

2. It is expected that the operating rate of tire sample companies in the next week may continue to be weak;

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

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