According to ANRPC’s latest report, by improving the supply and demand relationship, the weak yen, a rebound in oil prices and the economic recovery, began last month rubber prices rising momentum has been further consolidated. Data show that the natural rubber production year-on-year growth in the first 11 months of 0.4% to 10 million 106 thousand tons. Which Thailand, India grew 1.3% and 7.4%; Chinese, Malaysia maintained a downward trend. Export (including export to glue, the glue mixed Chinese), January to November, an increase of 4.9% in Thailand, Vietnam and Kampuchea have two digit growth; Indonesia, Malaysia natural rubber exports declined in different degrees.

For this year, the overall situation, report that the natural rubber production and export volume will appear slightly increased, a slight decrease of the results. The consumption of the year-on-year growth of 4%, imports fell 1.4%. For natural rubber prices, Chuancai securities issued a research report said that due to the recent foreign natural rubber market local supply, imports of goods to reduce, and the price of raw materials in Thailand market continues to rise, Qingdao bonded rubber stocks lower. Multiple positive drive at home and abroad, the spot market price of natural rubber continued to rise, thereby promoting the rise of hujiao. The demand side, passenger cars in October year-on-year growth of 21.7%, lower demand for improved support rubber prices. In addition, the price of natural rubber in September rebound, futures, spot market in October showed a rising trend.

Chuancai securities that, from the above factors visible, natural rubber prices likely will reverse the sustained 5 years of doldrums.

China and Thailand securities analysis, the total supply of natural rubber is still growing, but the growth rate is slowing down, and the local stage of the severe shortage of the whole year is less than expected. The inhibitory factor is low due to years of labor, in a serious lack of maintenance investment decrease, resulting in serious waste cutting, yield decline.

In addition, the natural rubber prices, investor futures analysts said the current domestic steel tire factory operating rate, semi steel were higher than the same period last year, and the heavy truck market in November sales year-on-year increase and a record high, show that the overall demand for downstream performance. From the point of view of circulation, as of the end of November 2016, Qingdao bonded rubber stocks compared to mid November rose 10% to 100 thousand tons, but the current inventory is still low. And the recent rise in synthetic rubber prices have some support for the price of natural rubber.

Data show that as of December 9, 2016, Shandong area steel tire operating rate was 72.65%, the semi steel tire operating rate was 73.39%, the operating rate of high stabilized tire. As of December 9th, the stock of 264 thousand and 900 tons (9 thousand and 500 tons last week rose), the registered warehouse receipts (197 thousand and 100 tons last week rose 8 thousand and 200 tons); in addition, as of November 30th, Qingdao bonded rubber stocks (a total of 100 thousand and 200 tons in November 16th increased 9 thousand and 300 tons).

Changjiang Securities issued a research report analysis, the future is expected to continue to rise in the price of rubber. “We judge that a future growth, natural rubber supply will not be short term, because of the summer in major producing countries in Southeast Asia suffered extreme weather alternating, rubber production growth slowed down in 2016; in the long term, in tapping rubber farmers enthusiasm improve and new open cut area accounted for relatively small based on the 2017 total amount of natural rubber will not grow significantly.

Automobile production and sales increase The price of rubber support