China's Natural Rubber Market Weakens Slightly

September 23, News

According to the commodity market analysis system, the spot market for natural rubber in China has shown a slight downward trend recently (9.17~9.23). As of September 23, the price of natural rubber in the Chinese market was around 14,883 CNY per ton, a decrease of 1.38% from 15,091 CNY per ton on September 17. On one hand, the high prices of raw materials for natural rubber have dropped, weakening the support for the natural rubber market; on the other hand, downstream buyers are replenishing stocks based on their actual needs before the holiday, but they are cautious about inquiring about high-priced goods, leading to significant resistance in market transactions, and thus the price of natural rubber has slightly declined. As of September 23, in the Qingdao area, the main quotations for 24-year Guangken, Baodao, and Haibao whole latex were between 14,800 and 15,050 CNY per ton.

As of September 23, the price of Thai adhesive stood at 55.30 Thai baht per kilogram, down 1.60% from 56.20 Thai baht per kilogram on September 17. Earlier in the month, natural factors had led to a decline in production within the raw rubber market. However, with weather conditions improving by September, raw material supplies began to recover somewhat, causing natural rubber prices—previously at elevated levels—to ease slightly. This, in turn, weakened the upward support for the overall natural rubber market.

Recently (9.17~9.23), the downstream tire production has slightly increased, providing a necessary support to the natural rubber market. As of September 18th, the semi-steel tire production of Chinese tire enterprises has slightly risen to around 75% capacity; the full-steel tire production in Shandong region has slightly decreased to about 65% capacity.

The forecast for the future: Currently, the high and firm prices of raw materials both in and outside China, along with the steady and organized operations of downstream tire production, provide support to the natural rubber market. The port inventory of natural rubber has slightly decreased, and with the arrival of the peak season, it is expected that the natural rubber market will fluctuate and rise.