Is the day of Black’s rise also the day of rubber’s plunge?
2022-02-19
Currently, policy measures are clearly weighing on commodity markets, with black metals showing the most pronounced weakness; prices in this sector have already fallen by more than 20% from their peaks. Some individual commodities are beginning to show signs of stabilization.
Rubber Market Performance:
The overall market is performing poorly, with limited demand at the retail level. Traders are experiencing slow sales, and inventory levels remain elevated. For now, the focus is on clearing existing stock, with little appetite for new purchases. Meanwhile, the severe COVID‑19 situation in Southeast Asia could weigh on rubber production.
Recently, downstream demand has been weak, causing tire manufacturers’ operating rates to ease from their early-May peak. Meanwhile, demand for concentrated latex products remains tepid, offering only limited support to rubber prices. On the daily chart, price action has largely trended upward in a choppy manner, with 13,900 serving as a key resistance level.
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