Tire grade rubber fell to four-year low

Traders said on Wednesday that due to concerns about global economic growth and weak Chinese demand, rubber prices have fallen to multi-year lows this week and Indonesia's tire grade rubber prices have fallen to a low since 2009.

Uncertainty in demand prompted speculators to sell the benchmark plastic contract on the Tokyo Commodity Exchange (TOCOM), and tire-grade rubber prices also fell to current levels. The TOCOM indicator has fallen by more than 20% this year.

A trader based in Sumatra, Indonesia's main growing area, said: "The market is so bad. Buyers are looking forward to trading, but in reality, there are no sellers at the moment." Indonesian tire grade SIR20 rubber is usually the cheapest rubber grade in Southeast Asia, 9 The monthly delivery price of the rubber grade fell to a four-year low of 99.25-99.50 cents per pound on Tuesday, down from 102-102.50 cents last week.

Thailand's September RSS3 rubber price was reported at 2.58 US dollars per kilogram, the lowest since 2009, and far below the historic high of US$6.40 per kilogram touched in February 2011. Last week it was quoted at $2.73-2.75, and traders said that this round of price decline was due to the end of the dry season, boosting supply in Southeast Asia, and weak demand as Chinese tire manufacturers switched to a cheaper warehouse from Qingdao. The supply. China Rubber Information and Trade Network's newly released rubber stock in Qingdao Free Trade Zone is 341,900 tons. Currently, it has entered the inventory digestion phase. There are not many recent arrival plans, and the increase in storage is slow.

According to the latest data released by the General Administration of Customs of China, China imported 130,000 tons of natural rubber (including latex) in June, a decrease of 27.8% from the previous month and a decrease of 18.8% from the same period of last year. The import volume in May was 180,000 tons. In June last year, it imported 160,000 tons. China imported 111,410 tons of synthetic rubber (including latex) in June, a decrease of 18.0% from the previous month and a decrease of 3.7% from the same period of last year. Last month's imports were 135,914 tons compared to 115,744 tons in the same period of last year.

China's imports and exports in June showed a rare negative growth for the past 17 months, far below market expectations. Given the lacklustre global economic growth and the appreciation of *** against the US dollar, the outlook for trade in the second half of the year is still not optimistic.