SunSirs: China Natural Rubber Market is Weak and Declining

https://www.chemnet.com   Nov 21,2024 SunSirs

According to the Commodity Market Analysis System of SunSirs, the domestic natural rubber spot market has been weak and declining recently (11.11-11.18). As of November 18th, the spot rubber market in China's natural rubber market was around 16,590 RMB/ton, a decrease of 3.46% from 17,184 RMB/ton on November 11th. Recently, the price range of raw materials has fluctuated; Domestic Tianjian inventory continues to increase slightly; Downstream tire factories tend to stock up on demand to support the demand for natural rubber, but they have some resistance to high priced sources, and the natural rubber market is consolidating in the high range.

With the arrival of the peak season for the opening and cutting of natural rubber in the fourth quarter, there is upward resistance in the price of raw rubber; The prices of natural rubber raw materials both domestically and internationally remain high and have fallen. As of November 18th, the price of Thai glue was 68.10 baht/kg, a significant decrease from 73.17 baht/kg on November 11th; As of November 18th, the purchase price of state-owned and gold rubber water-based concentrated latex raw materials in Hainan production areas was around 17,000 RMB/ton, a significant decrease from 17,600 RMB/ton on November 11th.

Natural rubber inventory maintains a slow destocking trend. As of November 10, 2024, the total inventory of Tianjiao bonded and general trade in Qingdao area was 415,900 tons, an increase of 2,900 tons compared to the previous period.

The downstream tire production is basically stable, and the demand is mainly supported by the natural rubber market's essential needs. As of November 15th, the operating load of semi steel tires in domestic tire enterprises is around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.9%.

The current high supply prices of raw materials both domestically and internationally are expected to decline; The tire market supports the demand for natural rubber, but is resistant to high priced sources of goods; The inventory of Tianjian has slightly increased; Overall, it is expected that the natural rubber market will experience a weak correction in the short term.

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