The prices of natural rubbers kept rising recently.
On Sept. 11, the price of state-operated latex was 12,000 yuan/ton in Shanghai. So far, latex prices have risen about 20% from early Sept.
Price actions in Shandong, Yunnan and Guangdong provinces were generally the same and the growths from Sept. to date were around 20%. In terms of futures quotation, the quotation of the most actively traded RU1701 was over 14,200 yuan/ton, up nearly 18% from the bottom in Sept.
Currently, the supply in natural rubber market has been tight: raw material supply was inadequate because of bad weather in the primary producing area. In addition,shipments of processing plants are also insufficient, limited quotations are mostly after Nov., and the short-term short-supply cannot be solved.
Demand for natural rubber in domestic market rebounded further and the consumer market went into the peak season.
The rubber inventory in Qingdong Free Trade Port Area dropped 11.2% to 91,900 tons as of end-Sept., marking a five-year low.
Natural rubber prices are expected to keep rising when the fundamental of supply-demand is improved and the business performance of relevant listed companies are likely to advance.
