[Natural Rubber]: Monthly Rubber Review (June 2024)

dry rubber

this monthChina's natural rubber spot market prices surged high and fell back, with an obvious "V" trend. In June, the world's major natural rubber producing areas were basically in a seasonal period of increase. In early June, the weather conditions improved slightly, and the trend of increasing raw material output was obvious. This in turn led to a weakening trend in upstream raw material prices, and cost-side support began to be weak. However, in the middle of the year, synthetic rubber and other products began to show a strong upward trend, bringing support to Tianjiao and beginning to rise in a narrow range. However, judging from the supply and demand of natural rubber itself, the support for high rubber prices was not correct, and rubber prices began to fall. News such as end-of-month purchasing and storage and alternative indicators stimulated, and rubber prices maintained a volatile trend.

natural latex

this monthChina's natural latex market is higher. During the month, downstream product companies were in the off-season of seasonal demand. There was a lack of favorable improvement in finished product orders. They were cautious about purchasing concentrated milk. Inquiries for real orders were sluggish. In addition, the pressure on upstream supply was gradually increasing. Raw material prices showed a downward trend, and market oversupply was expected to appear., dragging the price of natural latex loose and downward; however, the pace of domestic and foreign raw materials supply was slow for a short time, coupled with relatively limited pressure on the spot market, rubber prices were somewhat resilient, so the average monthly price showed a month-on-month increase trend.

Market outlook forecast:

In January and July, the supply of raw materials in production areas at home and abroad is expected to increase significantly, and cost support is weak;

2. Tire operating rates are expected to fall in July;

In March and July, Tianjiao's social inventory accumulation is expected to be high.

Table 1 International market

Table 2 Domestic market