According to the Commodity Market Analysis System of SunSirs, the domestic natural rubber spot prices continued to rise last week. The spot rubber market in China was around 13,100 RMB/ton on February 29th, up 1.55% from around 12,900 RMB/ton on February 26th.

Last week, the natural rubber market rose, with the Shanghai rubber 05 contract rising from 13,750 RMB/ton to around 13,900 RMB/ton. Currently, Thailand imports latex barrels at around 13,500-13,600 RMB/ton, bulk at around 12,800-12,900 RMB/ton, Vietnam imports latex bulk at around 11,600-11,800 RMB/ton, and domestically produced latex bulk at around 11,700 RMB/ton.

On the supply side, raw material output is limited and prices remain high. On the Thai side, raw material output is limited and prices rise; Vietnam's production areas have entered a shutdown period; China has entered a period of cutting cessation. At present, it is still in the off-season for seasonal construction, and some factories are shutting down. As of February 25, 2024, the total inventory of Tianjiao Bonded and General Trade in Qingdao area was 666,100 tons, a decrease of 9,600 tons or 1.43% compared to the previous period.

On the demand side: During the holiday period, downstream tire production was low, and the demand side was weak. After the holiday, downstream tire production increased, providing certain support for styrene butadiene rubber. It is understood that as of the 22nd, the operating load of semi steel tires in domestic tire enterprises was around 6.3%; The operating load of all steel tires for tire enterprises in Shandong region is around 45%.

At present, the supply of raw materials at home and abroad is tight, with domestic production areas entering a shutdown period and some foreign production areas entering a shutdown period. The strong prices of raw materials support the natural rubber market; At present, downstream factories are gradually resuming production, and the procurement of natural rubber may increase. However, downstream restocking may take some time, and it is expected that the natural rubber spot market will mainly consolidate at a high level in the near future.

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