Natural Rubber Price Drops (April 13)

Index

On April 10th, the Qingdao STR20 price index for natural rubber was $2070/ton, down $25/ton from the previous trading day.

Market Analysis

Futures Market:

Spot Market

Supply Side:

International: High temperatures in Thailand have disrupted trial tapping in the north, leading to a continued rise in overall raw material prices. During the off-season, raw material supply is essentially in a state of high prices but low volume, with secondary traders still holding stockpiled goods.

Vietnam's rubber-producing areas remain in the off-season. Due to persistent drought, soil moisture in rubber plantations is insufficient, and conditions for large-scale tapping have not yet been met. Trial tapping has not yet commenced, and supply is expected to continue tightening.

Domestic: Drought is affecting Xishuangbanna, Yunnan Province, with a yellow alert issued in Mengpeng area. Rubber trees are showing yellowing leaves, and state-owned enterprises have notified a halt to tapping. Secondary traders are facing restrictions on procurement, resulting in insufficient operation of processing plants.

Hainan's rubber-producing region is in the early stages of tapping, with persistent high temperatures and farmers diverting to harvest fruits and vegetables, resulting in low overall latex production. State-owned processing plants are gradually resuming latex collection and production, while private processing plants are resuming operations at a relatively slower pace.

On the demand side:

It is understood that as maintenance companies gradually return to normal production levels, the supply of semi-steel tires remains generally stable. Regarding shipments, some semi-steel tire manufacturers plan to raise prices soon; however, due to concentrated shipments last month, shortages and waiting lists persist in the market, somewhat restricting overall shipment volume.

Futures and Spot Price Overview

Market Outlook

Today, futures prices continued to fluctuate within a range, with an unstable price center and thin trading activity. On the supply side, domestic production capacity increases have been limited recently due to drought. However, major producing areas such as Thailand and Vietnam have fully transitioned from the off-season to the tapping season, increasing expectations for new rubber entering the market.

The overall trend of ample supply remains. Downstream tire manufacturers have low acceptance of high raw material prices and are generally focused on digesting existing inventory, resulting in weak purchasing intentions. In summary, after the cost benefits are digested, rubber prices may experience a seasonal decline.

Our platform connects hundreds of verified Chinese chemical suppliers with buyers worldwide, promoting transparent transactions, better business opportunities, and high-value partnerships. Whether you are looking for bulk commodities, specialty chemicals, or customized procurement services, TDD-Global is trustworthy to be your fist choice.