[Natural Rubber]: Rubber Daily Journal (August 8)

Analysis of natural rubber market price on August 8

index

On August 8, the STR20 price index of natural rubber in the Qingdao market was US$1325/ton, which was stable from the previous trading day.

market analysis

futures market

spot market

Supply:

Foreign countries: Rainfall and weather in foreign production areas have eased, and raw materials are in a state of high volume, driving raw material prices to fluctuate within a narrow range.

China: Yunnan's production areas in Hainan are basically in a stage of steady increase in production. Among them, Yunnan's production areas have occasionally experienced rainfall recently, but the overall impact is small. Coupled with this, supply in Hainan's production areas has also gradually returned to normal, and raw material prices have fallen within a narrow range.

Demand: Orders from tire companies are relatively sufficient. As the adjustment of abrasive tools gradually stabilizes, there is still a possibility that the operating rate of semi-steel tire companies will increase slightly. All-steel tyre maintenance enterprises will resume work one after another on the 3rd. As production capacity gradually recovers, it will drive a recovery improvement in the overall operating rate. In terms of the market, the new moon alternates. At the beginning of the month, some agents mainly replenish goods regularly. Recently, raw material prices have increased. However, production companies have no intention of changing prices in the new month. Some agents have appropriate policy support to the market based on their own inventory situation, which has limited overall sales drive.

Futures spot price list

market outlook

The seasonally booming natural rubber production season has arrived, and raw materials in various major producing areas have been increasing one after another. Against the background of loose supply, most raw material prices have remained weak. So far, the processing profits of upstream processing plants have remained relatively low, and to a certain extent, it may suppress the output of finished products; China's macro data is improving, which is to a certain extent conducive to the expected improvement in tire replacement and supporting demand, which relatively supports the start of tires to remain high. However, the pressure on high inventories in China's society is difficult to alleviate, and there is still insufficient upward momentum in rubber prices. In the short term, rubber prices are expected to remain mainly volatile.