Rains Came in Yunnan, Rubber Tapping Affected
The rubber plantations in Xishuangbanna, Yunnan, suffered much rain recently. The rubber farmers said that the rainy weather lasted over a month. There was more raining days from the usual years. The rubber tapping and production was affected then.
The Rains Affected the Rubber Tapping
The rainy weather in Xishuangbanna lasted over a month. The continuous rain influenced the normal rubber tapping activities. Thus, the output of field latex was impacted. One rubber farmer showed that there were more raining days this year. The plantation has stopped rubber tapping for over 8 days in July. However, the rubber tapping and the output was also not good in the normal day.
The Operating Rates Were not High at the Rubber Feedstock Processing Plants due to the Feedstock Shortage
The feedstock supply was tight due to the rainy weather and the low prices. The output of field latex declined notably. One manager of a rubber feedstock processing plant showed that the plant did not receive rubber feedstock from the plantations for about 10 days. The operating rate was low. It only maintained the production for low grade standard rubber and tire-grade rubber. One manager from another plant showed that the overcapacity and the tight supply of feedstock lasted for a long time. The rainy weather and the low prices of the rubber feedstock made the supply worse.
Prices of Field Latex Recovered
As for the prices, the purchase price of the field latex showed an uptrend. The price of field latex was RMB 12.5/kg in Yunnan, up RMB 0.5/kg from early July. The tight supply, caused by the rainy weather, and the overall price increase of the bulk commodities pushed up the prices of the rubber feedstock.
Source: sci99.com
