electronicpinballmachine| Market analysis of natural rubber and cis-1,4-butadiene rubber: Market outlook under tight raw materials and cost pressure

News summary

Natural rubber is supported by supplyelectronicpinballmachine, the shocks were strong; the fundamentals of cis-1,4-butadiene rubber were under pressure, but the price was narrow and weak, with a limited decline.

Newsletter text

[Analysis of natural rubber and cis-1,4-butadiene rubber market: Supply and demand dynamics affect price trends]

Recently, the dynamics of the natural rubber and cis-1,4-butadiene rubber markets have attracted the attention of investors. In terms of the natural rubber market, as domestic and foreign production areas are currently in the early stages of cutting, and high temperature and drought weather conditions lead to limited raw material output, Thailand's raw material prices remain high, forming strong support for market prices. Although the market is currently in the off-season, the overall supply pressure is not large, so the fundamentals of natural rubber are relatively stable, and macroeconomic warmth and demand stimulation expectations may bring strong market shocks.

In the butadiene rubber market, as the loss pressure of rubber factories has eased and some equipment under routine maintenance has been maintained and restarted, it is expected that the industry's starting level is expected to resume, thus keeping demand stable in the short term. However, the downward trend in butadiene prices may put pressure on the cost side of polybutadiene rubber. Although the rubber factory's losses continue, it is expected that market prices will resist falling in the short term. As the prices of related varieties of natural rubber remain high, the price of cis-1,4-butadiene rubber may also be driven. In the short term, cis-1,4-butadiene rubber prices are expected to be weak in a narrow range, but the decline is expected to be limited.

In terms of risk factors, investors need to pay attention to changes in the operating rates of downstream tire companies, the pace of release of global production, drought mitigation in domestic production areas, changes in the start-up of butadiene rubber units, and the de-warehousing of downstream tire terminal sales.

From a strategic perspective, the trend of natural rubber (RU) is seen as more cautious, while cis-butadiene rubber (BR) is seen as neutral.