The global natural rubber production area as a whole began to transition from high-yielding period to low-yielding period, and the expected seasonal decrease in supply boosted the rubber market.
As of January, the natural rubber production areas in Yunnan and Hainan have been completely cut off. Due to the decrease of raw glue supply, the purchase price of rubber factories has risen slightly, and the sales sentiment has risen. With the continuous decline of temperature, the northern and central parts of Thailand took the lead in the transition to the cut-off season. In mid-January, it was heard that some areas had been cut-off. In early 2019, Typhoon Pabu landed in the Gulf of Thailand, Thailand suffered from continuous heavy rainfall, resulting in the abnormal development of rubber tapping activities. However, the direct impact of typhoon is relatively short. After the weather improved, rubber tapping gradually resumed in southern Thailand, and the production was very abundant.
| PVA |
It is reported that rubber production in southern Thailand doubled in January, and is expected to be smoothly produced by the end of February. Indonesia and Malaysia cut rubber relatively smoothly and are expected to enter the production reduction period in February. Indonesia’s production area is affected by diseases, and its yield is about 20% lower than that of the previous year. Most rubber plantations in Vietnam stopped cutting ahead of schedule in February to save wages due to low rubber prices and meager profits.
To sum up, the global supply of natural rubber will gradually move from peak to trough. The basic area of natural rubber is weak and difficult to return, but under the seasonal rule or out of the rebound market.
| POLYVINYL ALCOHOL |