Natural rubber: weak demand around the Spring Festival prices difficult to show
Recently, the price support of Shanghai glue mainly comes from the raw material end. Since December last year, there has been a lot of rain in Thailand's production areas, which has affected the rubber cutting progress. The raw material price has continued to pick up. The increase in rainfall is likely to keep January production below market expectations.
At present, the supply and demand pattern of Shanghai glue has not changed much. From the perspective of warehouse receipt and out-of-area inventory, the inventory continues to increase, reflecting the current strong supply and seasonal characteristics of low demand. This also determines the Shanghai glue price or difficult performance, before and after the Spring Festival is the downstream tire plant operating rate freezing point, the downstream demand gradually weak is an indisputable fact, supply end or become the focus of the late market. Continuously monitor the changes in inventory as a guide to price over time. Last week's news about domestic infrastructure construction is good for rubber in the long run. In the near future, because of the raw material and macro level, the price of Shanghai rubber is supported, but the fundamentals are still weak.