[Natural Rubber]: Rubber Weekly Review (July 18)

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

dry rubber

Rubber prices have basically remained weak and consolidating this week. The overall fluctuations in rubber futures are relatively limited. The fundamentals remain at the previous stage. The seasonal release trend on the supply side remains unchanged. However, due to recent weather disturbances, the decline in raw material prices has slowed down, and the downstream market demand is flat. The pressure on production and marketing of tire companies remains unchanged, and flexible production control will continue. Social inventories maintained a de-stocking trend, but the de-stocking speed slowed down and market bull sentiment also began to decline. In the short term, the negative sentiment in the Tianjiao market is relatively heavy, and rubber prices are still expected to weaken under the market game.

natural latex

Domestic concentrated milk offers remained basically stable this week, with a narrow rise at the end of the week. Traders 'enthusiasm for making offers was acceptable. Domestic and foreign production areas were disturbed by weather, raw materials were firm and higher, and cost support was enhanced. In addition, the supply pressure of spot resources in the sales area is not obvious for the time being. Traders maintained a slight increase in offers, but downstream product companies continued to be bearish on the future market, were cautious in inquiries, and negotiated actual orders.

Market outlook forecast:

1. The seasonal growth in raw material output in foreign production areas is expected to be obvious, and the cost support is weakening;

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

3. The inventory volume in Qingdao, China may be deposited and removed, and the pressure on high inventory has eased;

4. Exchange rate, Federal Reserve rate hike, etc.。