October, the domestic markets were mixed rubber, natural rubber rebound, or up 3.81%; synthetic rubber decline is slowing down. Industry insiders say, compared to the previous month, October rubber market decline narrowed, the current market remains weak. Currently, the supply and demand is still the main factor restricting Jiaojia.
Customs data showed China September imports of natural rubber 320,000 tons, 280,000 tons compared with August’s increase significantly; this year, total imports in the first nine months was 3.05 million tons of natural rubber, an increase of 9.6%. Industry experts said the alliance policy felling limit production to stabilize prices, etc. At present, Thailand, Indonesia, Malaysia and other major producing countries established to regulate and control the rubber market, will directly affect all of China’s rubber imports and downstream industries.
Reporters learned that, recently, Thailand, Indonesia, Malaysia and other major producing countries to establish a stable price and other limited production felling alliance policy, regulation and control of the rubber market, which impact on China’s natural rubber imports. According to foreign media sources, Indonesia is mainly rubber, a senior official called on the members of the organization in the second quarter of 2015 before strictly limited sale of rubber, which is to take action to support rubber prices in the world’s second largest rubber producing country less than a month the second time. And as early as the end of September, the Indonesian Rubber Association GAPKINDO issued a letter to members and rubber producing countries, calling on them to put the rubber base price set at $ 1.50 per kilogram. So far this year, rubber prices have fallen more than 30 percent.
Of belonging and a major importer of natural rubber consumption, global natural rubber consumption accounts for 1/3 of the total consumption of natural rubber. However, due to geographical conditions and other objective factors, most of the area is not suitable for the cultivation of natural rubber, external dependence up to 80%. In the presence of a long-term supply and demand gap of the objective situation, the main producing countries restricted so that rubber prices will certainly lead to ups and downs, which will directly affect the country’s rubber imports and downstream sectors of production and sales.
Imports showed a seasonal characteristics
Zhuo record information analyst Wu Weiru told reporters, China’s natural rubber imports showed a seasonal characteristics: annual natural rubber imports in May is the off-season, since then into the summer, products companies operating general decline, limited demand for raw material procurement. And after July imports of natural rubber market will surge, on the one hand due to the downstream products companies usher 9,10 peak demand; on the other hand, 2 to March next year due to the global rubber production in the off-season, so the maximum amount of annual imports month typically occur in December and January.
Wuwei Ru said that as natural rubber imports and domestic rubber prices lag period of two months, that is, two months after the start of the retraction spreads reflect increased imports. Thus, according to statistics lag of two months beginning, imported glue, spread with natural rubber imports in domestic rubber showed a negative correlation. Under normal circumstances, once imported glue and poor domestic rubber prices began to fall from a high point, then import natural rubber, natural rubber produced domestically will replace the domestic market for the procurement of imported glue enthusiasm will heat up; on the contrary, the spread between the high, then limited in the current market under corporate profit margins, so companies will be more likely to choose a lower purchase cost of domestic rubber as a raw material, especially in the low-end latex products for small and medium enterprises.
Natural rubber demand gap for our long-standing problems, industry experts suggest that social capital should actively encourage the participation of domestic and foreign natural rubber planting and processing, and vigorously promote the overseas reserves of natural rubber resources, establish overseas production bases, enhance the natural rubber resources control. While the development of rubber recycling industry, fully utilize and improve the processing capacity of waste rubber resources. But also to establish mechanisms for monitoring and early warning of natural rubber imports, domestic traders and related businesses to guide rational imports.
Translated by Google Translator from http://market.cria.org.cn/25/24514.html
