Rubber fundamentals do not support the bull market

- Mar 25, 2019-

The China association of automobile manufacturers (caam) has released China's auto production and sales data for February 2019 and the economic performance of the auto industry.Due to the market downturn and holiday factors, the overall level of car production and sales in February was low.In February, China's automobile production and sales volume were 1.41 million and 1.482 million, respectively, down 17.4% and 13.8% year on year, and down 40.4% and 37.4% month on month.In the first two months of this year, China's auto production and sales volume reached 3.776 million and 3.852 million respectively, down 14.1% and 14.9% from the same period last year.Specifically, the production and sales of passenger cars declined year on year, but the sales of commercial vehicles increased year on year, and the new energy vehicles grew rapidly year on year.The automobile industry should carefully deal with the pressure of economic operation, and the production enterprises should reduce the output to reduce the pressure of the end market.Statistics released by Qingdao customs show that from January to February 2019, the export amount of new inflatable rubber tires in shandong province was 8.36 billion yuan, up by 1.4% year on year.From the perspective of major trade markets, on the one hand, Europe and the United States carry out double anti-tire policy towards China; on the other hand, the export to One Belt And One Road countries maintains a relatively high growth rate, and the overall situation of tire foreign trade is temporarily stable.Rubber fundamentals do not support the bull market, but the center of gravity gradually moving up the shock, wide band thinking.The cost line of the lower support (11000,12000), and the important pressure level of 13,000 is referred to above.

As a big supplier of rubber chemicals in North America market, Shenyang Sunnyjoint Chemicals Co., Ltd. will keep an eye on the fluctuate.