Export Difficulties In Vietnam Show Weak Demand For Rubber

Shanghai natural rubber (25805, -25.00, -0.10%) futures contract fell 0.23% in early May on 25.

The launch of eurozone common bonds failed to win the support of Germany and France.

It is reported that Vietnam's exports to China are extremely unsmooth, and once again verify the slowdown in demand in China, the rubber market is under pressure.

On the 23 th (24 thanksgiving day off), the New York mercantile futures exchange January crude oil contract fell by 1.84 dollars or 1.88%, and the settlement price was quoted at 96.17 dollars per barrel.

Eurostatistical bureau announced that the euro zone's new industrial orders in September dropped sharply compared with the previous month, the largest decline since December 2008, which has become the latest sign of Europe's possible recession.

German bond auction marks the worst result since the euro came out, and investors worry that the European debt crisis may even threaten Germany.

HSBC's China Manufacturing Purchasing Managers' index previewed at a 32 month low in early November, indicating that China's manufacturing activity has slowed sharply again.

In addition, consumer spending in the US slowed down in October.

However, the US crude oil inventories decreased by 6 million 220 thousand barrels a week, supporting the market.

The fall in crude oil will reduce the cost of synthetic rubber, which is unfavorable to the natural rubber market.

Weather conditions, natural rubber producing areas in Thailand, cloudy in the north and central part of Thailand, rainy in the south, rainy in the southern part of the Malay Peninsula, cloudy in the northern part of Kalimantan Island, cloudy north of the equator in the Indonesia producing area, rainy south of the equator of Sumatra island, and cloudy southern part of Kalimantan island; the Chinese producing area, the Hainan light rain, and the clear Malaysia.

The recent weather has little effect on tapping production and pportation.

There was no change in the Asian spot market on the previous trading day.

Some exporters are not actively offering offers due to the low volume of raw materials available due to recent heavy rainfall in Thailand.

A large exporter in Bangkok said he had not procure much raw material for five days in a row.

December /1 shipment of Thailand No. 3 smoked sheet RSS3 was quoted at 325-330 cents per kilogram.

On the 25 day, the official quotation of Malaysia SMR20 December was slightly increased in December.

In other respects, Vietnam reported that last week there were great difficulties in exporting rubber to China through the border trade.

The rubber export trade of border street in Guangning province is still depressed, and the daily turnover is only 100-200 tons.

The reduction in volume resulted in a sharp decline in export prices. Last week, the lowest price of rubber at the port was 21 thousand and 800 yuan / ton, with a maximum price of 22 thousand and 600 yuan / ton.

In November 23rd, the price of SVR3L rubber was further reduced to 2.08-2.09 million yuan / ton (excluding tax).

The plight of Vietnam shows that China's demand is rather sluggish. If macroeconomic policy is not adjusted, the price of rubber will not improve significantly.

On the whole, the trend of commodity market is not obvious.

The European sovereign debt problem has not found a suitable solution. The European Central Bank has promoted the common debt of the euro, but has hurt the interests of Germany and France.

The two countries have made great efforts to rescue the southern European countries, but they have not achieved significant results.

The debt crisis is spreading in several countries.

On the other hand, China's exports are facing resistance, and China's economic growth is slowing down. It is expected that China will ease monetary policy to support economic growth.

In addition, the signs of economic recovery in the US are quite obvious.

The external situation has some pressure on the rubber market.

It is reported that Vietnam's exports are still not smooth, and the procurement of Chinese buyers is in the doldrums.

Similarly, the downturn in the spot market in Southeast Asia was temporarily supported by the agreement on the reduction of rubber producing countries.

The supply and demand bureau is facing the disadvantage of the rubber market.

This will wait for countries to further relax monetary policy, especially China's reserve requirement ratio.

Before that, the rubber market is hard to see a marked rise.