Rubber Daily Report: Market Bullish Trend
Index
On June 2nd, the STR20 price index for natural rubber in the Qingdao market was $2390/ton, up $10/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Rainfall in Thailand's producing areas decreased compared to the previous week, leading to a continued increase in raw material supply. Local demand improved, and factories continued to rush to purchase raw materials for production.
Southern Vietnam's producing areas experienced frequent thunderstorms, but short-term rainfall had limited impact on tapping operations. The producing areas have entered a production increase phase, with the tapping rate continuing to rise, resulting in a significant increase in new rubber output compared to the previous week.
Domestic: Yunnan's producing areas have recently experienced relatively frequent intermittent rainfall, affecting raw material output to some extent, leading to a significant increase in raw material prices. Hainan's producing areas experienced localized rainfall, but the overall producing areas maintained a seasonal supply increase trend. Local processing plants continued to purchase raw materials at higher prices to ensure their own production and order fulfillment needs.
Demand Side: It is understood that some semi-steel tire manufacturers underwent maintenance at the beginning of the month, while most other companies maintained stable production. Some companies, however, experienced production reductions due to order fulfillment issues. Overall, the operating rate of semi-steel tire manufacturers is expected to decline, with slow shipments and some companies experiencing an increase in overall inventory.
Futures and Spot Prices Overview
Market Forecast
Today, futures prices remained volatile at high levels, while spot offers saw a slight upward shift. Tapping operations continued to ramp up both domestically and internationally, but overseas factories remained eager to secure raw materials to meet orders, resulting in high raw material prices and strong cost support for rubber prices. Downstream demand remained largely unchanged, with cautious, just-in-time purchases. Inquiries were moderate, and actual transactions were weak. In the short term, cost support remains strong, boosting market sentiment and suggesting further upside potential for rubber prices.
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