The hottest supply peak is coming, and the price o

  • Detail

With the supply peak approaching, the price of natural rubber is still bullish

although the market expects the supply of rubber in Thailand to peak in August, considering that the production reduction of natural rubber in China is serious and the demand is strong, and the high cost of crude oil will curb the decline, all parties in the market are still optimistic about the future market, believing that the overall future market will remain high

after the suspension of rainfall in July, rubber farmers in the south of Cathay Pacific, the world's largest rubber producer, began to cut rubber again. Exporters said that the supply will peak in August, and the Thai rubber price may decline by 20%, but strong overseas demand and high crude oil costs will curb the decline

the Ministry of agriculture of Thailand previously estimated that the rubber production in 2008 was 3.1 million tons, but because the wet season lasted longer than expected, the rubber cutting work in May and June was interrupted, and traders and exporters were expected to be 2.9 million tons. Thai analysts predict that as supply increases and prices decline, China's strong buying will enter the market. It is expected that the price of Thai No. 3 smokeless film (uss3) will fall to 80 baht (US $2.4) per kilogram in August

an economist of the International Rubber Association said that the rubber price is expected to decline, but it will not be as low as the Thai baht seen in the past few years. The rise in crude oil costs may help the Thai rubber price to remain above BAHT 80 per kilogram for the rest of 2008

the continued strong demand in China is also an important factor driving the continuous rise in rubber prices. It is best to have a look on the spot when buying Jinan gold testing machine. According to the statistics released by the General Administration of Customs in the first half of the year, China imported 110000 tons of natural rubber in June, at a high level, indicating that domestic demand for natural rubber is still strong. At the same time, supported by the expected reduction of domestic natural rubber production in 2008, China's spot rubber price is still strong. In addition, although the domestic CIS polybutadiene rubber price has continued to rise recently, and the downstream demand has not significantly weakened. This also fully shows the market's strong price digestion ability

since June, the prices of natural rubber at home and abroad have increased by different ranges, especially Shanghai rubber. Analysts pointed out that this is due to the imbalance between domestic supply and demand on the one hand, and the obvious demand for replenishment compared with foreign rubber prices on the other hand, combined with the boost of speculative funds and the stimulation of international oil prices hitting new highs, which promoted the rise of Shanghai rubber

a domestic rubber trader said that at present, most domestic traders have no inventory on hand and are waiting for the peak of rubber production, but they also found that the rubber price has become higher and higher since turning the hand wheel of the oil delivery valve to open the oil delivery valve in June. Therefore, traders dare not buy a large number of ships. At present, this situation has lasted for nearly a month and a half, and has led to less and less spot supply equipped with a high-precision measurement and amplification system

from the perspective of the international rubber market, spot resources continue to be tight, and rubber farmers in Southeast Asia are obviously reluctant to sell, waiting for higher prices. This led to the delay of delivery of some rubber merchants in Thailand and Malaysia to overseas customers, resulting in downstream buyers having to turn to other suppliers, further exacerbating the tension in the spot market

however, recently, with the sharp decline in oil prices, the price of rubber also fell. Traders said that because consumers are keen to ensure inventory after the recent price rise, and sellers are also eager to sell, it is expected that the price of plastic will decline further in the next few days due to its light weight, non rusting, good insulation and other advantages

note: the reprinted content is indicated with the source. The reprint is for the purpose of transmitting more information, and does not mean to agree with its views or confirm the authenticity of its content

Copyright © 2011 JIN SHI