Qingdao STR20 Rubber Rises(December 15)
Index
On December 15th, the Qingdao STR20 price index for natural rubber was $1835/ton, up $5/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Escalating geopolitical tensions between Thailand and Cambodia affected local rubber tapping and factory production. Rainfall in the south increased slightly compared to the previous week, resulting in an overall trend of initial decline followed by a rise in raw material prices. Weather in Vietnam's producing areas is gradually returning to normal, with no extreme weather disrupting rubber tapping operations.
Domestic: Raw material prices in Yunnan's producing areas remained stable, with the area entering its off-season. Increased rainfall in Hainan's producing areas increased disruption to rubber tapping operations. Simultaneously, with decreasing temperatures, the dry content of fresh latex dropped to around 26-27%, resulting in a seasonal decrease in overall raw material output.
Demand Side: It is understood that production at companies undergoing maintenance is gradually resuming, which has somewhat boosted capacity utilization. Overall, the pace of shipments is slow, with most companies flexibly controlling production. Some companies may undergo maintenance at the end of the month, keeping overall output at a low level.
Spot and Futures Price Overview
Market Outlook
Today, the main rubber futures contract maintained high-level fluctuations, while spot offers shifted slightly upwards. The anticipated easing of geopolitical tensions between Thailand and Cambodia has kept raw material prices firm.
Downstream buyers are cautious, and port inventories continue to accumulate. In the short term, the spot market lacks significant upward or downward momentum, and prices are likely to remain range-bound.
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