Natural Rubber Market Lacked Momentum without Structural Improvements
The robust performance of natural rubber market in the fourth quarter of 2020 lifted the market confidence, and the anticipation of better recovery of natural rubber market in the post-pandemic era was strong. When 2021 kicked off, American government’s fiscal incentive measures pushed up the commodity markets represented by the crude oil market. The commodity prices moved up due to their co-movement. The mismatch between supply and demand also helped the market. As a result, price of most traded natural rubber futures contract at Shanghai Futures Exchange moved up to above RMB 17,000/mt, the highest point since September 2017. Since then, natural rubber futures were fluctuating at a high level. Later, investors closed positions after harvesting profits, and rubber fundamentals turned weak. The market price lost all the ground gained since last September.
Natural rubber price rose high before falling to below RMB 13,000/mt in the first six months
...
Please click "Read more" for more information
