Rubber Daily: Pressure is Back (June 12)
Index
On June 12th, the STR20 price index for natural rubber in the Qingdao market was $2310/ton, up $5/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Increased rainfall in southern Thailand led to continued tight latex production, and latex prices continued their upward trend. In the northeast, normal production volumes were observed, and factories were pressuring for lower raw material prices, putting downward pressure on cup lump prices. Localized showers in Vietnam had little impact on raw material production, and current raw material supply remains tight.
Domestic: Yunnan's production areas experienced sporadic rainfall, but overall supply remained high. Factories were selectively purchasing rubber, strengthening expectations of stable raw material prices. In Hainan's production areas, favorable weather conditions, coupled with high prices, encouraged rubber farmers to actively tap, resulting in a steady seasonal increase in raw material production and strengthening signals of new rubber production capacity release.
Demand Side: It is understood that the decline in rubber prices weakened cost support, leading to sluggish market demand. Price reductions and promotions failed to boost purchasing sentiment. Short-term policies remained stable, and companies mostly adjusted prices flexibly based on inventory. Semi-steel tire sales are slow, with only immediate demand transactions.
A slight rebound is possible after the national college entrance examination and the senior high school entrance examination, but the increase will be limited. All-steel tire supply is ample, but sales are average. Replacement demand is expected to increase slightly after the wheat harvest and rising temperatures.
Futures and Spot Prices Overview
Market Outlook
Today, futures prices fluctuated, while spot offers followed the price movements within a narrow range. Raw material supply in domestic and international producing areas is experiencing a seasonal rebound, putting downward pressure on raw material prices and weakening cost support.
Downstream orders are insufficient, and companies are actively controlling production, resulting in weak demand. Under the influence of multiple factors, previous positive factors are gradually fading, and rubber prices are under short-term downward pressure.
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