The break of Sino-US trade negotiations is expected to lead to a fall in rubber prices
Jul 17, 2019
Tokyo rubber market was affected by the rise in risk aversion in the external market in the context of a possible break in Sino-US trade negotiations. Although the Shanghai market maintained a good trend throughout the trading day under the influence of the news of customs rectification of mixed rubber imports, China's rubber imports While increasing the cost of domestic rubber stocks, it also transfers some of the supply pressure to foreign markets. In the short term, the weather in the main producing areas of Southeast Asia is not conducive to cutting, resulting in higher raw material prices in the market, but with Rainwater is slowly increasing, and it is more likely that rubber prices will enter the medium-term downtrend channel as production increases. At the same time, once the Sino-US trade negotiations break down on the weekend, the deterioration of the macroeconomic environment will also cause the weakening of rubber prices.