January 2018 cable raw materials (rubber) monthly report

1.
Macroeconomic news

1.
The US CPI in December was 0.
1% month-on-month, 0.
1% expected, and 0.
4%
previously.
December CPI 2.
1% y/y vs.
2.
1% expected vs.
2.
2%
prior.
The US core CPI in December was 0.
3% month-on-month, the highest growth rate since January, and 0.
2% expected and 0.
1%
prior.
December core CPI 1.
8% y/y vs 1.
7% expected and 1.
7%
prior.
The US core CPI rose to 0.
3% month-on-month in December, the largest increase in 11 months; Core CPI growth also unexpectedly rose year-on-year, reinforcing expectations of another rate hike in March 2018 and helping to bolster Fed officials' confidence
in a pick-up in inflation.
The higher core CPI in December was helped by higher housing and health care costs
.

2.
Eurozone's unseasonally adjusted current account in November was +37.
8 billion euros, and the previous value was revised from +35.
9 billion euros to +35.
4 billion euros
.
Eurozone's November quarterly current account +€32.
5 billion was revised from +€30.
8 billion to +€30.
3 billion
.
Eurozone December CPI year-on-year final 1.
4% vs 1.
4% expected and preliminary 1.
5%.

Core CPI was 0.
9% y/y final versus 0.
9% expected, and preliminary 0.
9%.

CPI 0.
4% m/m vs 0.
4% expected vs.
0.
1%
prior.
Eurozone seasonally adjusted trade balance +€22.
5 billion in November vs.
+€22.
3 billion expected vs.
+€19 billion prior
.
Eurozone unseasonally adjusted trade balance +€26.
3 billion in November vs.
+€18.
9 billion
in the previous month.

3.
China's December PPI was 4.
9% year-on-year, 0.
1% higher than the expected 4.
8% and 0.
9%
lower than the previous value of 5.
8%.
China's December CPI was 1.
8% year-on-year, 0.
1% lower than expected at 1.
9% and 0.
1%
higher than the previous reading of 1.
7%.
China's CPI and PPI in December were both lower than expected
.
In terms of CPI, the price of fresh vegetables in food items continued to be a drag
.
In terms of PPI, the PPI continued to fall in December, hitting a new low since November 2016, mainly due to the rapid upward
trend of the PPI base in the same period last year.
The rise in the price of means of production is the main supporting factor
for PPI.
From the perspective of industry, oil and gas extraction, ferrous metal smelting and rolling processing industry, petroleum processing industry, non-ferrous metal smelting and rolling processing industry are the main supporting factors, but the year-on-year price increase has slowed down
.

Second, the analysis of natural rubber market trends