A Roller-Coaster Natural Rubber Market in Q1 and Market Focuses in Q2
Natural rubber market was on a roller-coaster ride in the first quarter of 2021. It could be muted and then a leading figure in the commodity markets. It also experienced a sharp drop. You may wonder what exactly happened in the natural rubber market in the first quarter and what is coming in the second. This paper will tell you all.
Since 2104, price of the most traded natural rubber futures contract at the SHFE had been weak and fluctuating between RMB 10,000/mt and RMB 20,000/mt, although surprising ups and downs could appear temporarily. The outbreak of Covid-19 pandemic hit the rubber market hard. After that, it rebounded strongly. Particularly in October of 2020, a lack of SCRWF attracted bullish investors, and the bottom price of Shanghai natural rubber futures was lifted. Although Shanghai natural rubber futures price has not broken away from the historical lows yet, it now stands higher than any moment after 2018.
In the first quarter of 2021, Shanghai natural rubber futures price started from a relatively high level. The futures price first rose and then dropped.
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