The demand side is slowly recovering, and there is favorable support below the rubber price

Rubber futures trend weak down, combined with the recent inventory and the future market supply and demand rubber grinding bottom adjustment, the operation to 12200-12100 around the low operation long order, that is, the hourly line 20-day moving average, rolling operation, gradually move profit protection
.

Continuous rainfall and persistently negative profit margins reduce the operating load, which leads to a contraction on the supply side
.
This year, due to abnormal phenology, the continuous lack of rainfall in Thailand in the first quarter, and the low rubber price hit by the epidemic or affected the rubber farmers' rubber tapping sentiment, Thailand's cutting time was postponed
.
July to September belongs to the rainy season in southern Thailand, the rain is relatively more, although the supply of production areas is in the process of increasing, but the phased tight supply will occur from time to time, which supports the purchase price
.

Affected by a Category 3 tropical storm this week, Thailand has more rainfall, especially in the north and northeast, which also affected the local glue purchase work, and the price center of gravity has risen
one after another.
And according to some tire factories, supported by the recovery of foreign markets and replenishment demand, tire export orders from August to September are expected to perform well, coupled with the good tire supporting orders of the main engine factory, forming a certain support for the future tire enterprise start-up, and the demand for tire enterprises is expected to be stable and good
.

The difference between the third and fourth quarters is that demand may recover more slowly this year, so the rebound in the fourth quarter will be relatively weak, unless overseas demand becomes obvious in the later stage, or greater monetary easing is introduced
.
In the second half of the year, due to the slow recovery of the demand side, the fundamentals are better than the first half of the year, from the macro point of view, the low valuation of rubber itself coupled with a relatively loose macro environment, is a favorable support below the rubber price, and from the industry's own fundamentals The shortage of standard rubber supply, coupled with the sharp recovery of the global automotive industry month-on-month is the internal driving force
of the price rise.