Rubber Daily Report: Volatility Remains the Main
Index
On June 1st, the STR20 price index for natural rubber in the Qingdao market was $2380/ton, up $50/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Rainfall in Thailand's producing areas decreased compared to last 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 thunderstorms, but the 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 and new rubber output showing a significant increase compared to the previous week.
Domestic: Yunnan's producing areas are gradually increasing in volume after rainfall. Raw material prices fluctuated slightly, and both full-latex and state-owned standard rubber factories gradually began purchasing rubber.
Hainan's producing areas experienced localized rainfall, but the overall producing areas maintained a seasonal increase in volume. Local processing plants continued to purchase raw materials at higher prices to ensure their own production and order fulfillment needs.
On the demand side: It is understood that the overall supply in the tire industry is currently relatively abundant, but shipments are slow. Some companies are considering production cuts or shutdowns, which will further hinder production. Current shipments are below expectations, and companies remain under pressure to produce, with overall inventory levels still rising.
Futures and Spot Prices Overview
Market Forecast
Today, futures prices remained volatile at high levels, while spot offers saw a slight upward shift. Overseas production areas are currently in the early stages of tapping, and raw materials remain scarce. Factories are still eager to acquire raw materials, providing some support on the cost side in the short term.
Downstream demand remains largely unchanged, with cautious, just-in-time purchasing. Inquiries are generally weak. The natural rubber market is currently experiencing both bullish and bearish factors, with rubber prices expected to remain range-bound.
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