SunSirs: Raw Material Prices Decline, China Domestic Natural Rubber Market Returns from High Levels

https://www.chemnet.com   Jul 09,2024 SunSirs

According to the commodity market analysis system of SunSirs, the spot price of natural rubber in China has weakened recently (7.1-7.8). As of July 8th, the spot rubber market in China was around 14,166 RMB/ton, a decrease of 2.69% from 14,557 RMB/ton at the beginning of the month.

On the one hand, the supply of raw materials in domestic and foreign raw material production areas is gradually increasing, and the price of natural rubber raw materials has been falling all the way, causing cost drag on the domestic natural rubber market. As of July 8th, the price of Thai adhesive was 63.50 Thai baht/kg, a decrease from 70.45 Thai baht/kg at the end of June; As of the 8th, the purchase price of state-owned and gold rubber water based concentrated latex raw materials in Hainan production area was around 13,600 RMB/ton, significantly lower than 14,500 RMB/ton at the end of June; The purchase price of all latex raw materials for glue production is around 13,600 RMB/ton, a decrease of 500 RMB/ton from the end of June.

On the other hand, natural rubber inventories are slowly being depleted, resulting in a narrow consolidation of the overall market. As of July 7, 2024, the total inventory of Tianjiao bonded and general trade in Qingdao area was 493,000 tons, a month on month decrease of 0.89%.

Downstream tire production is temporarily stable, with demand facing strong support from the natural rubber market. Downstream inquiries are resistant to high priced sources, resulting in a high price drop in natural rubber prices. As of July 7th, the operating load of semi steel tires for domestic tire enterprises is around 79%; The operating load of all steel tires for tire enterprises in Shandong region is about 62%.

The current domestic and foreign raw material supply is gradually increasing, and the high price of natural rubber raw materials is falling back; In addition, downstream tire companies are currently operating steadily and are cautious in purchasing high priced goods; Overall, the natural rubber market is expected to narrow down in the short term after a recent high decline.

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