Main rubber prices open higher, helping the market price climb back above the 17,000 yuan mark

The main rubber futures contract in Shanghai has been replaced, with RU2609 opening higher and rising steadily. On the morning of April 21, it was quoted at 17,064 yuan/ton, up 210 yuan, a 1.25% increase, once again breaking through the 17,000 yuan threshold. Upstream inventories continue to decline; as of April 19, Qingdao bonded general trade inventory was 708.8k tons, a slight decrease month-on-month, with tire factories replenishing stocks before the holiday driving shipments. Thai production areas have begun to see small-scale tapping, causing raw rubber prices to fall. Domestic and international post-Water Festival production is expected to increase, but recent weather remains a focus. Currently, drought in Yunnan, China, has slowed rubber tapping, temporarily easing raw material pressure. During the early stage of global tapping, overall supply pressure is limited. Thai rubber sheet prices closed at 78.0 baht/kg, unchanged from the previous day; Thai cup rubber closed at 60.8 baht/kg, down 0.1 baht/kg from the previous day; Yunnan rubber sheet was quoted at 15.9 yuan/kg, unchanged from the previous day; Hainan rubber sheet was quoted at 15.8 yuan/kg, unchanged from the previous day. Regarding other commodity futures, crude oil strength has supported a bullish atmosphere for petrochemical products. Today’s daily line broke through 17,000, indicating a shift to a stronger pattern. We expect short-term support to remain in the 16,900-17,000 range. The fundamentals have short-term support, but the strength is limited, so chasing highs is not advisable. (Natural Rubber Network)