Natural rubber is an undervalued product this year, and the current market price is at a relatively low level in history. Since the continuous depreciation of the RMB exchange rate since April, the cost of imported goods has increased. About 80% of China's natural rubber is dependent on imports, and exchange rate costs have increased, which has reduced the profit margin of domestic traders. The profit margin is compressed, the natural rubber spot market is resilience, and in the long-term, the natural rubber market may recover, and the bottom rebound may be.
In November, the domestic natural rubber production area in Yunnan will enter the stoppage period. Due to the low price of rubber this year, the willingness of rubber farmers to cut rubber is suppressed, and the rain is too high, and the customs inspection strictly reduces the import of smuggled rubber. Due to the demand for 9710 and 20# tire rubber in the downstream factories this year, and also the trading of the standard rubber in the production area, it is expected that the local processing plant may have the intention of snapping up and hoarding raw materials in the early stage of the cut, so the upstream link provides the natural rubber market. support.