Natural rubber hits bottom and stabilizes; the market may fluctuate within a wide range in the future.

In March, data on both natural rubber imports and tire exports all showed month-on-month increases. Market preferences for natural rubber demand warmed up, and together with the destocking of light- and dark-colored rubber, this boosted traders’ bullish sentiment. However, rainfall expectations for producing areas in the future are suppressing the upside of rubber prices. According to the latest market quotes from Longzhong Information, in the Shandong market the prices of state-owned 24-year full latex products Yunxiang, Baodao, and Guangken are 16,500, 16,500, and 16,500 respectively; Vietnam 3L, Thailand No. 3 smoked sheet, and Vietnam No. 10 are priced at 16,900, 19,900, and 15,700 respectively, while spot prices remain stable. Supported by persistently high raw material costs and continued tight overseas supply in the short term, the natural rubber market’s downside space is limited. Although some producing areas have rainfall expectations, initial output is still constrained. Rubber’s main benchmark contracts have stabilized and rebounded from the lows, and the approach should be based on a volatile-but-firm outlook. Even so, at higher levels, remain alert to signs of being under pressure. (Natural Rubber Network)