The contradiction between supply and demand of natural rubber is unabated, and market quotations continue to fall

According to statistics from the Association of Natural Rubber Producing Countries, the price of SMR 20 standard rubber in Malaysia has fallen from US$1,572/1,000kg on May 23 to US$1,388/1,000kg
on June 7, according to data from the Association of Natural Rubber Producing Countries.

The increasing vulnerability of natural rubber prices is externally due to the impact on
their demand and supply.
The impact of futures on the Shanghai Futures Exchange and the Tokyo Industrial Exchange on the spot price of natural rubber is increasingly prominent, and the futures exchange is vulnerable to exchange rate fluctuations, crude oil prices and geopolitical movements
.
The analysis shows that the generally bearish trend towards natural rubber prices is mainly attributed to the unexpected decline
in crude oil prices.

In addition, the increase in interest rates in the United States in June became another major factor
in suppressing the recovery in Asian commodity prices, including rubber.

Currently, Brent crude oil prices are running
around $46 a barrel.
The U.
S.
Energy Information Administration expects Brent crude prices to recover to $
54 a barrel by the fourth quarter of this year.
According to World Bank forecasts, Brent crude oil averaged $55 per barrel in 2017 and is expected to reach $
60 per barrel in 2018.
In the third and fourth quarters of 2017, the expected recovery in the crude oil market is expected to boost the natural rubber market
.