Natural Rubber

The quoted price for Qingdao rubber in USD was temporarily stable with limited inquiries. The CIF of STR20 in April was $1,390 per ton. The CIF of SMR20 in August was $1,400 to $1,405 per ton. The CIF of mixed rubber from Thailand in June was $1,410 to $1,415 per ton. Overseas rubber fluctuated. The main force contract of TF05 rose by 0.1 or 0.07% to 134.4. The main force contract of JUR07 rose by 2.0 or 1.14% to 177.2. The SHFE rubber fluctuated. The main force contract of RU05 fell by 10 or 0.09% and closed at 11,330, and the main force contract of NR04 fell by 90 or 0.93% and closed at 9,540.

People's Daily News: Shenyang Rubber Research and Design Institute Co., Ltd., a subsidiary of Haohua Technology, which is a subsidiary of China Chemical Industry Corporation, use the scientific research institute's technical advantages to carry out the production of emergency medical supplies of insulation garment products. As a national institute specializing in the research and development and production of hoses and tape products, Shenyang Rubber Institute is capable to produce insulation garment against chemical pollutants. The insulation garment required for the development and production of the frontline of the epidemic is a Class I medical device, which needs to go through production filing. With the strong support of China National Chemical Corporation, Haohua Company, and Shenyang City and Tiexi District Governments, the Shenyang Rubber Institute immediately started relevant work.

According to ANRPC's assessment of 2019 output, China's annual output was 812,300 tons, which is at the same level as 818,400 tons in 2018. As of February 7, the subtotal inventories of SHFE rubber was 244,000 tons, and futures inventories were 237,000 tons. Sub-total minus futures inventories are 7,000 tons, a year-on-year decrease of 68.8%, and the historical average is 37,000 tons.

Futures Operation Advice: The SHFE rubber went higher once and then retreated. As for the main contract of RU05, it is advised to hold the long position and set a stop at the recent low level at 11,190 below.

(For reference only)