International crude oil price fell, for which the commodity markets moved down as a whole. Natural rubber futures prices dropped during the overnight trading hours. RU2109 price fell below RMB 13,000/mt. On July 20, Shanghai natural rubber futures opened lower, and the market fell by more than 4%, losing all the ground it gained in the past half a month.
Now, natural rubber fundamentals are weak. Rubber output is increasing more quickly as the rubber prices and profits rise. However, the downstream operating rate is weak due to the high temperature and slower tire sales. Tire companies are cautious about purchasing natural rubber. The trading atmosphere remains not good. SCI predicts that natural rubber market will remain lackluster with the increasing rubber output and the weak demand.
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