Natural Latex Supply Exceeds Demand Pattern Difficult To Change The Difficult Operation Of The Industry

- May 13, 2019-

The natural latex market in July as a whole lower shock, imports of latex first fell, and then stabilized, domestic latex has suffered a slump.Industry insiders said that the major reason for the sharp decline in the price of imported latex in early July was the collapse of futures and market panic, coupled with the current weak domestic macroeconomic data, the market's expectations for a better domestic economic situation, the stock market and futures market crash led to an upsurge of pessimism in the commodity market.Because August ~ September belongs to the high yield season at home and abroad, and the demand of downstream enterprises is low, the market will still be in the pattern of supply exceeding demand, so it is expected that the market situation of natural latex will maintain a volatile downward trend.

Domestic latex prices plummeted

In July, the natural latex spot market price has declined significantly. First, the price of imported latex dropped sharply at the beginning of the month. Later, as the market atmosphere stopped falling and stabilized, the market price of imported latex began to be in a tug of war around 10,000 yuan/ton.Zhuochuang information analyst wu weiru said in an interview with the international business daily reporter, the purchase price of raw materials in Thailand in July as a whole inverted v-shaped trend.Early July, the northeastern Thailand drought, thus make the glue output is limited, but because of production accounted for 10% of total output in the northeast, the overall share of smaller and thus boost for the market as a whole is limited, however, as the south of the monsoon rains, continuous rain in tapping work, Thailand for NaLaoBeiHan overall situation, price of the raw material of glue to form a certain support, the highest price month climbed to 49.5 / kg.However, with the weak operation of domestic futures, as well as the industry after the rain supply concerns, glue prices began to fall.

Compared with imported latex, domestic rubber market is more tragic, July domestic production areas in hainan concentrated latex prices plummeted.According to zhuo gen information statistics, in June, domestic latex highest prices climbed to 9500 yuan to 9600 yuan/ton level, early July, however, macro economic downturn atmosphere by peripheral latex and import prices, domestic latex market setback, lowest price fell to 7400 yuan/tons, a relatively high in June fell 2000 yuan/ton, 20.94% decline.

According to wu weilu, due to the continuous downturn of Shanghai rubber and the weak operation of domestic market, the domestic latex market continues to fall, and most of the processing plants in hainan production area sell below the cost price, and the continuous loss makes the overall operation of the processing plants difficult.With the larger price advantage, domestic thick milk on the imported space bag market formed a certain impact, the overall transaction is hot, there is news that when the domestic glue fell to the low price, the overall turnover of hainan glue as high as 100 cabinet level.But then came heavy rains in hainan and yunnan provinces, limiting supplies of raw materials and supporting a small correction in prices.

Latex products are difficult to operate

Wu weilu expresses, current latex product whole runs hard, the order drops sharply continuously bring about partial small and medium-sized enterprises to stop production to close, a few larger shoe-making enterprises month consumption is only 1 ark latex, compared with the same period in previous years whole glide 50% above.Just need weak industry as a whole deal blocked, the market trading atmosphere bleak.As of July 31, the price of barrel latex for three trees in Shanghai was 10,000 yuan per ton, down 700 yuan or 6.54% from June.According to introducing, because domestic latex price falls continuously, the sale price of the processing plant that produces a region such as hainan is much under cost price, bring about factory loss, operate difficulty thereby.Throughout the current market situation, the industry is expected to natural latex market outlook is not optimistic, mainly because of the next two months is still a high season, although the current rubber because of low price, production of rubber farmers enthusiasm tapping a setback, but due to depressed demand downstream products enterprise at present, the future market will be in a relatively long period of time in an oversupply situation.In addition, wu weeru said, because the domestic factory in August generally facing high temperature production, terminal rigid demand will continue to reduce, and the early low-cost source of goods will be concentrated in early August to the port, so from the fundamental point of view, the latex price is expected to continue to maintain the downward trend of concussion.