Natural rubber trend is uncertain

In Thailand, Malaysia and Indonesia, the most important rubber producing countries in Southeast Asia, the new wave of new crown pneumonia epidemics has become more and more intense, which directly affects the already fragile natural rubber market
.

In order to control the epidemic, Thailand, Malaysia, and Indonesia started curfews and lockdowns, causing rubber production to drop by 4% to 5%

The epidemic affects natural rubber production

Epidemic affects natural rubber production Epidemic affects natural rubber production

According to official data from Thailand, Malaysia and Indonesia, in the past week, the number of new confirmed cases in Thailand and Malaysia has increased at a rate of about 13,000 per day, while the number of new confirmed cases in Indonesia has increased by about 35,000 per day
.

It is also the most severe period of the epidemic in the three countries

As the epidemic has intensified, Thailand, Malaysia, and Indonesia have all started curfews and lockdowns to control the epidemic
.

Although all three countries have stated that they will not impose too strict controls on rubber tapping workers and rubber transport workers, rubber production and rubber transportation are still affected

In addition, other factors have also caused a shortage of rubber on the market
.

Nakorn, Director of the Rubber Management Bureau of Thailand, said that in addition to labor shortages caused by the severe epidemic situation, Thailand is also facing problems such as high transportation costs caused by heavy rainfall in the southern rubber production areas and shortage of shipping containers

The price of glue did not rise

The price of glue did not respond and the price of glue did not rise

Generally speaking, if there is a shortage of product supply, the price of the product should increase significantly
.

However, the price of natural rubber did not rise as predicted by many investment institutions

Nagong said that due to the epidemic, the price of rubber fell slightly
.

He believes that the decline was due to pressure factors from foreign futures markets and the impact of synthetic rubber competition caused by the decline in crude oil prices

In addition, from a financial perspective, due to OPEC+'s gradual relaxation of the decision to reduce production and the spread of the Delta mutation virus, the US dollar index has risen sharply, reducing market risk appetite, and also causing global financial markets to fall back and panic sentiment rises again
.

As mentioned earlier, the fundamentals of rubber itself are in a weak state, dragged down by the weakening of the external market, long funds fled, leading to a sharp drop in rubber futures prices

　　Multiple measures to maintain market stability

Multiple measures to maintain market stability Multiple measures to maintain market stability

　　As rubber prices are still on the downward trend, in order to maintain price stability, the Rubber Authority of Thailand uses a variety of methods to stabilize rubber prices
.

However, as the new crown pneumonia epidemic has no signs of easing for the time being, Thailand, Malaysia and Indonesia may not be able to improve the rubber market in a short period of time

　　Earlier this month, the Thai Rubber Authority began to implement a policy of slowing down rubber sales to stabilize rubber prices
.
The northern region of Thailand has implemented a policy of slowing down the sales of rubber cups for the purpose of stabilizing rubber prices, and has achieved certain results
.
This year, the Rubber Authority of Thailand continued to implement the project and expanded it to other regions
.
In addition, the Rubber Administration of Thailand will purchase 100% fresh latex in the central and southern regions to enter the rubber sales project in order to maintain latex prices by delaying the listing of fresh latex
.
The Rubber Administration has specially prepared equipment and chemicals for storing fresh latex
.

　　However, for the three countries of Thailand, Indonesia and Malaysia, if the epidemic continues to worsen, the trend of natural rubber will still be in the current state of uncertainty
.