Natural Rubber: Strength Emerges Amidst Turmoil
Index
On August 4th, the Qingdao STR20 price index for natural rubber was $2190/ton, up $45/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Rainfall in Thailand increased compared to the previous week, but market trading was somewhat sluggish due to the holiday. Processing plants showed little interest in raw material purchases, only replenishing their inventories to meet immediate needs.
Coupled with continued market expectations of increased supply, raw material purchase prices continued to decline. Recent concentrated rainfall in Vietnam's producing areas has temporarily hampered rubber tapping, significantly reducing new rubber production and providing clear support for raw materials and costs.
Domestic: Rain continued for most of the day in Yunnan's producing areas, affecting rubber collection. Due to the impact of falling spot prices on raw materials, purchase prices softened slightly. Continued rain in Hainan's producing areas disrupted rubber tapping, resulting in a tight supply of fresh latex on the island. Local processing plants had limited actual raw material available for purchase and maintained a strategy of bidding up prices to secure supplies.
On the demand side: It is understood that most tire manufacturers are operating stably, and some maintenance-inspection companies have resumed production as planned. A few companies have slightly delayed their resumption of operations, resulting in overall shipments falling short of expectations and insufficient orders. Additionally, some companies have maintenance schedules, leading to a continued weak supply. Companies are primarily managing production flexibly.
Futures and Spot Prices Overview
Market Outlook
Today, the futures market saw a volatile rise, boosting market sentiment. Holders adjusted their offers upwards. On the supply side, continued rainfall in domestic and international production areas has led to widespread price increases for new rubber shipments at upstream processing plants. Downstream inquiries have improved slightly, but operating rates remain low, with cautious purchasing driven by immediate needs, resulting in generally weak actual transactions.
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