Drought Will Lead To Price Cuts In Rubber Production, And Shoe Material Enterprises Will Be Affected.

"Around April is the peak period of tapping, and rubber trees absorb a lot of water."

Hu Zhuoyong, an associate researcher at Yunnan Tropical Crops Research Institute, said that if the critical period could not guarantee enough water, the growth of rubber trees would be greatly affected.

"The possibility of capital speculation by drought is increasing."

Yu Jianlei, a natural rubber analyst at an institution, said that the initial inventory of the rubber companies has been digested by about 70%, and user demand and drought reduction have provided the soil for capital speculation.

"It can be predicted that the lower rubber output will definitely affect the price of downstream end products."

Experts analyze the impact of drought and weather decisions. If it rains in April, rubber will usher in the peak period of rubber tapping. The increase in output will inevitably inhibit the price rise.

When some people focus on the price impact, many people have already started early.

"The impact of this drought on prices is not easy to say."

Deputy General of natural rubber procurement, a well-known tire manufacturer in Sichuan, said that before the Spring Festival this year, the company had bought a lot of rubber through futures and spot markets, but he said that the price of dry gum had almost no impact on the company.

Nevertheless, the official admits that they are paying close attention to the progress of drought in Yunnan. "This year, major rubber producing areas are suffering from drought. At present, domestic rubber imports rely heavily on imports. The reduction in domestic production is not enough to shake the whole situation."

However, a source of information has revealed that many raw materials for rubber enterprises have been approaching zero inventories.