In December, NR futures price on the SHFE is expected to drop and fluctuate. After the price dropping of several days, it has neared the 20-day moving average. If the 20-day moving average can provide good support, the rubber price will fluctuate repeatedly. However, in case of continuous price drop, it will come to RMB 12,000/mt. From the technical analysis, market players hold the wait-and-see attitude, and wait for the signal. In terms of fundamentals, China’s rubber tapping stopped, and the import volume dipped. However, both Thailand and Malaysia are in the high production season, and the governments have already cancelled the export restriction. Most of the spot resources are now held by traders. Thus, the supply will remain ample in December. From the perspective of demand side, the sales are weak, and the inventory pressures at producers are mounting up. With the arrival of heating season in North China, the operating rate at producers has many uncertainties. It’s predicted that the market price will move downwards in December, and the support line should be paid attention to.
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