Market consumption is still not optimistic, and rubber prices fluctuate at a low level

In terms of raw material supply, upstream raw materials have been running at the bottom position, and there is not much
room for continued downward movement.
Thailand's three consecutive weeks of rainfall have been able to match the current weak estimates
.
Domestic glue runs smoothly, and Yunnan glue maintains a relatively reasonable position
of +700 yuan / ton of water glue.
The epidemic spreading upstream is one of the factors that may be hyped: Malaysian processing enterprises have stopped production, while the market is still in demand for standard rubber, which has led to a significant strengthening in the valuation of the main raw material cup rubber; There are also cases
of local production suspension in Vietnam due to the epidemic.

In terms of news, domestic consumption is still not optimistic: the China Association of Automobile Manufacturers released the "early warning" data on automobile production in July within the week: as of the first and middle of the year, 11 key enterprises completed automobile production of 806,000 units, down -33.
0%
year-on-year.
Among them, passenger car production decreased by -31.
2% y/y; Commercial vehicle production decreased by -41.
3%
y/y.
If the full-month production and sales data are close to it, the production reduction will be second only to the early stage
of the epidemic.
The latest tire operating rate decreased slightly week-on-week
.

In terms of inventory, as of July 26, the inventory of 16 samples of natural rubber general trading warehouses in Qingdao was 410,300 tons, down 44,900 tons
from the end of June.
The inventory of 17 samples in the region was 87,700 tons, up 00,500 tons
from the previous period.
As of 07-30, the warehouse order of Tianjiao was 177,910 tons, an increase of 3,170 tons
week-on-week.
Total trading inventories were 196,750 tonnes, up 12,464 tonnes
week-on-week.
No.
20 rubber warehouse order was 40,924 tons, a week-on-week decrease of 13,000 tons
.
Stock exchange inventories totaled 47,174 mt, down 08,500 mt
week-on-week.

At present, domestic tire enterprises are running weakly and steadily, although a few starts are higher, but the impact on the overall start pull is limited, and the start is lower
than that of the previous month.
Replacement terminal demand still poses a resistance to the downward transmission of finished products, especially the heavy rainfall in some regions has affected
the market operation.
The pressure of delivery in the export market is greater, and the delivery cycle is prolonged
.
Heavy rainfall may also have an impact
on rubber production and supply.
On the technical side, RU2109 maintains a short-term oscillation operation in the 12500-13700 range
.