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Tuesday, August 16, 2022

Rubber enterprise trapped high inventory panic

Natural rubber to continue the down trend of years ago yesterday, the center of gravity down again. The main contract Hujiao 1309 to close at 25,085 points, down 3.48% compared with the previous trading day.

According to overseas media said the recent Thailand 3 smoked rubber offer has risen to the reasonable price of $ 3.30 per kilogram, while the Thai Deputy Minister of Agriculture recently also said that the Thai government will cease to continue rubber buy mechanism, the current plan will be the end of March expired.

“This message is displayed to the supply pressure of the main rubber producing countries still exist,” the analysts said, as the largest rubber exporter, Thailand stop execution rubber purchasing policies, is likely to outward release the pressure on the stock. The agency is expected by the end of March, the Thai government from the hands of the rubber farmers to buy rubber establish inventory will reach 41 million tons in total.

Domestic front, natural rubber stocks are equally high. It is reported that in January, China’s natural rubber imports hit a recent high reached a level of 250,000 tons. The natural rubber Analyst far, Qingdao Free Trade Zone, the total inventory of the rubber has reached more than 320,000 tons.Insiders told reporters, actually Qingdao Free Trade Zone inventory than this number is even higher, may have exceeded 40 million tons.

Early this month, the rubber futures consecutive uplink market confidence in its performance of the Festival. It is understood that, before the Spring Festival, the domestic large and medium-sized enterprises of rubber products are launched different levels of stocking. A tire factory in Dongying official told reporters, their rubber has been stocking until March, and some of the larger local tire factory equipment shipments even reach the level of 8,000 tons, it is estimated that this inventory is available until mid-March to early April.

Unexpectedly, after starting the year, rubber spot prices continue to edge lower. As of February 20, the domestic the Yunnan state-owned full latex quotation dropped to 25,700 yuan / ton, Hainan state full latex prices dropped to 25,600 yuan / ton, Vietnam 3L rubber offer fell 23800-24000 yuan / ton. “Due to labor constraints, natural rubber downstream market after the Spring Festival started slow recovery, natural rubber offer was low, but not ideal real single transaction in the domestic spot market, the majority of rubber enterprises deep inventory panic.” Analysts said.

Faced with the current situation, in the middle part of the rubber traders also quite helpless. “Pre-holiday price of natural rubber is quickly pulled up sharply on the shipment did not play a role in boosting Qingdao Free Trade Zone, a rubber traders told reporters, although traders want the very price, but subject to downstream weak demand.

It is reported that in a mid to late once appeared preganglionic car small peak, which makes the the rubber market demand was essentially flat with the previous month in January, the transaction price has gone up. But in February with the arrival of the Spring Festival, the working day to reduce, dealers generally looked down upon the overall demand of the market.

International aspects, the rubber terminal condition of the automotive industry is also more severe. The recently released by the European Automobile Manufacturers Association, ACEA data show that in January this year, the EU-27 passenger car registrations fell by 8.7%, the figures since the same period in 1990, a new low.

In the analyst’s opinion, the demand is a key factor restricting market outlook. He is expected to downstream plant will be fully restored in March started but still consume previous stocking mainly true market purchases may be finally able to start until mid-March.

Source: http://market.cria.org.cn/25/13001.html

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