Zhuochuang Information: Natural rubber cost support and buying interest show resistance to high prices; in the short term, prices mainly fluctuate within a range

In the recent natural rubber market, prices have been running in a fluctuating range. Futures prices are clearly affected by macroeconomic disturbances and are showing a high-range, sideways oscillation pattern. As for spot market price trends, there is also a lack of directional guidance; spot prices continue to stay at 16500–16800 yuan/ton. Downstream participants are reluctant to accept the current high prices. In addition, because raw material prices remain elevated, businesses’ production and processing margins are scarce. Therefore, the overall trading atmosphere in the spot market is not active. Some enterprises mainly replenish inventory on a just-in-need basis when prices are low. The mainstream deals are mainly driven by arbitrage positions rolling forward and switching months. As of last Friday, the average price of Shanghai whole-milk latex was 16555 yuan/ton, up 310 yuan/ton from the previous period’s average, a rise of 1.91%. In the Shandong market, the average price of STR20# mixed rubber was 15800 yuan/ton, up 330 yuan/ton from the previous period’s average, a rise of 2.13%. With supply-and-demand support differing in frequency, together with turmoil in the external macro situation, in the short term the natural rubber market may continue to follow a range-bound sideways trend. It is necessary to pay close attention to later tapping (harvesting) weather conditions and how macro sentiment affects the linkage of commodities.（Zhuochuang Information）