CITIC Futures: Rubber fundamentals support the bullish trend, and the market continues to rise

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The rubber price continues to strengthen, with RU breaking through the 18,000 mark, maintaining significant volatility within the day, and overall still in a bullish trend. Currently, we believe that the market is influenced both by previous speculation on El Niño and by expectations of tight spot market conditions and inventory reduction from May to June. During the past week, as the market prices kept rising, the spot market also followed closely. Currently, raw material prices remain relatively strong, and combined with the performance of foreign markets, there is no sign of overvaluation in the domestic market. Therefore, there are currently bullish factors driving supply. On the demand side, due to earlier Middle Eastern geopolitical conflicts, the market generally held a weak outlook for short-term downstream demand. However, based on the latest tire production data, there has been no expected decline, and export figures also remain stable. We believe this discrepancy in expectations stems from domestic efforts to boost exports at this stage. Looking ahead, there are no obvious negative factors in the market, and the fundamentals are gradually improving, so the market is expected to remain relatively strong. (CITIC Futures)

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