NR Market Tended to Fluctuate Largely in the Short Run

NR Market Tended to Fluctuate Largely in the Short Run

September and October are normally the peak season for all industries. But, this peak season failed to boost the already low NR prices. However, the prices tended to fluctuate sharply in the short term, which led to a huge divergence among market players. How will the NR market perform during the Mid-Autumn Festival and National Day holidays?

The Mid-Autumn Festival and National Day holidays will affect the downstream demand significantly. The operating rate at downstream producers will surge before the holidays. At the meantime, the total operational days will be fewer. The future demand is also expected to be soft amid bearish macro-market sentiments. As for the supply side, the peak season has arrived, and the rubber output will rally. The inventory pressure remains an issue.

The supply still exceeds the demand in the NR market, so investing on the NR market is not favored by the players. The launch of TSR 20 will also bring uncertainties to the market.

The narrowed basis supports the spot prices. Even though the NR prices hit bottom, the speculative excitement remains unabated.

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