Rigid demand is still weak The actual transaction of the rubber market is not good

The growth momentum of the automotive industry in the past two years has not been strong, although it will sometimes increase, but in the big picture, the extent is limited
.
In particular, the new energy vehicles that everyone is more optimistic about not only have not increased, but may decrease
.
Because of the impact of this emergency, the sales of automobiles have been greatly affected, sales have declined significantly, and the demand for tires has also been greatly reduced
.

In the early stage, because rubber has a 30-year production cycle, it enters a successive production reduction cycle after several years of production increase cycle
.
After several years of rubber production increase cycle, the cycle of the market will enter the production reduction cycle, so there is obvious support
for the bottom of rubber.
However, in fact, the reduction of rubber production is only theoretical, and in practice there is no obvious reduction in production
.

Including the previous rumors of rubber pests and diseases and drought have not had a substantial impact on rubber production, even if Malaysia has cut the plantation area by 20%, but it has not yet been implemented, so rubber production is not low
.
With the rise in domestic rubber speculation prices, imports have increased significantly, inventories have increased significantly, and the impact of this emergency has put great pressure
on rubber prices.

It can be seen that rubber has fallen before the Spring Festival, and after the Spring Festival, due to the sharp decline in market inertia, there has been a rebound during the period, but recently due to the rapid development of the epidemic abroad
.
Demand for rubber is expected to be very weak, as car sales will clearly be affected
by the pandemic.

From the trend of rubber, from the perspective of the big situation, the weekly cycle, the current rubber has been at the bottom of the long-term flat weekly line, in the area of about 10,000 yuan, the middle of 2018 has reached this position, and then the end of 2015 is also in this position
.
Therefore, the price of 10,000 will support rubber, but it is also necessary to pay attention to the market breakdown, because rubber has relatively high production costs
.