Ministry of Commerce: Rubber prices will rise after 5 weeks or will stabilize

According to the Commerce Ministry’s 10-day business forecast, last week (August 1 to 7) rubber prices rose for five consecutive weeks, up 0.8% from the previous week (the same below) and up 4% from the beginning of July.

Butadiene, a raw material for synthetic rubber, has risen in price and production costs have increased, pushing up the price of synthetic rubber. Last week, the prices of butadiene rubber, butadiene rubber, and styrene-butadiene rubber rose by 3.5%, 1.6%, and 0.9% respectively. However, due to the increase in tapping volume in Yunnan and other production areas and the increase in inventories, the price of natural rubber stopped falling, and the prices of imported No. 3 smoke tablets and domestic No. 1 standard rubber all fell by 0.2%.

Natural rubber inventories continued to climb. On August 5th, the stock of natural rubber in the Shanghai Futures Exchange was 20,700 tons, an increase of 10.3% from the previous week and an increase of 44.4% from the end of June. At present, the operating rate of the tire industry is low, and the market purchases are declining. It is expected that the price of rubber will stagnate in the later period.