Global stock markets stayed in an upward trend during the week, supported mainly by a report on slightly higher than expected Chinese inflation in June and a hint about extended stimulus by U.S. Federal Reserve chief Ben Bernanke on Wednesday.
The improvement in Shanghai and Hong Kong stock markets didn’t lend any support to Shanghai rubber futures and physical rubber markets in Asia even though the General Administration of Customs said China’s NR imports rose 18.1% to 1.16 million tons in 1H13 from a year earlier as the yen strengthened against the greenback later in the week, and investors were still pessimistic about high rubber stocks in Qingdao and uncertainties of the current global economy.
Website http://en.qinrex.com reported that rubber stocks at Qingdao bonded warehouses as of 29 March 2013 totaled 358,600 tons, which comprised 208,000 tons (58%) of NR, 51,000 tons (41%) of synthetic rubber (SR), and 99,600 tons (28%) of compound rubber. Referring to the percentage of the three types of the mentioned rubber stocks in Qingdao as of 29 March 2013 and their latest updates of 341,900 tons in July 2013, a rough estimate of NR stocks in Qingdao bonded warehouses should be around 201,721 tons.
On the NR supply side, Thai exporters faced delayed shipments because persistently scattered thundershowers in some southern parts of the country still disrupted rubber tapping. Dry weather and the haze in Indonesia and Malaysia are expected to reduce NR production in the two countries this year, at least about 5%.
Source: IRCo
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