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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White carbon black, also known as silica, is scientifically termed precipitated hydrated silica. It is a high‑tech inorganic fine chemical product whose main constituent is SiO₂. Its physical properties resemble those of carbon black, appearing as a highly dispersed white amorphous powder or flocculent powder; it is also processed into granular forms for commercial use. Lightweight, with an original particle size below 0.3 μm and a relative density ranging from 2.319 to 2.653, it has a melting point of 1750°C. It is insoluble in water and most acids, but absorbs moisture from the air, forming hygroscopic fine particles. It is soluble in caustic soda and hydrofluoric acid, while remaining inert to other chemicals; it does not decompose at high temperatures nor does it burn. It is chemically inert toward substrates, active ingredients, and additives, and exhibits excellent compatibility with many active components commonly used in vitamins, hormones, fluorides, antibiotics, enzyme preparations, and cosmetics. It possesses high electrical insulation properties. Owing to its porosity and large specific surface area, it demonstrates strong dispersibility in raw rubber and imparts superior reinforcing performance in rubber compounds. Surface‑modified hydrophobic silica readily disperses in oils, rubbers, and plastics as a reinforcing filler, significantly enhancing mechanical strength and tear resistance. Due to variations in manufacturing processes, the physical and chemical characteristics, as well as the microstructure, of silica may differ, leading to distinct application areas and performance outcomes.

2022-02-19


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