Global natural rubber production areas as a whole from high to low production period transition, the expected reduction in supply of seasonal rubber market boost.
As of January, the domestic yunnan and hainan natural rubber production areas have stopped cutting.Due to the reduction of the supply of raw materials glue, glue factory acquisition price slightly recovered, reluctant to sell emotional warming.With the continuous drop of temperature, the northern and central production areas of Thailand took the lead in the transition to the cut-off season, and we heard that some areas had stopped cutting in mid-january.At the beginning of 2019, typhoon pabu landed in the gulf of Thailand, and many parts of Thailand were hit by continuous heavy rainfall, resulting in the failure of normal rubber tapping activities.However, the direct impact of the typhoon was relatively short. After the weather improved, the production area in southern Thailand gradually recovered, and the output was abundant.
It is reported that in January, rubber production in southern Thailand about doubled, is expected to smooth output to the end of February.Indonesia and Malaysia relatively smooth tapping, is expected to be in February one after another into the production period.The yield of the production area in Indonesia decreased by about 20% compared with the previous year.Due to the low price of rubber and low profit, in order to pay wages, most rubber plantations in Vietnam stopped cutting ahead of schedule in February.
To sum up, the global natural rubber supply from peak to trough.Natural rubber fundamentals weak difficult to return, but the seasonal law or out of the rebound market.