Mirada Semanal - AlRubber.com - Exportación de Latex y Caucho Natural

Latex prices rebounded and rubber prices have not yet been defined

Written by Team Alrubber EN | May 6, 2024 5:00:41 PM

China's industrial activity data was relatively good, boosting quotes. As for supply, more volume is expected to be added in the coming months. This could motivate a drop in prices, although it would be a small effect. Asia-South America transportation rates remain high due to high demand for the China-Brazil route.

Chinese industry grows again in April: A sustainable trend?

Good data from the Chinese industry, which grew again in the month of April. According to the official indicator, this was weaker growth than in previous months. On the other hand, the index prepared by the Caixin group, which does not include public companies and is more focused on smaller firms, reached its highest value in 14 months.

Stability in US industrial activity, declines in Japan and Europe

Industrial activity remains stable in the United States, but falls in Japan and Europe. The United States Federal Reserve maintained the interest rate, as expected.

The supply of natural rubber appears: What impact will it have on prices?

The supply of natural rubber begins to appear. Good weather and supply levels are expected in the coming weeks, while the low production season is ending. Some analysts project a slight drop in prices in the coming months, although we do not see a very clear trend in any direction.

Anti-deforestation regulations in Europe: impact on natural rubber prices

European anti-deforestation regulations are beginning to have an effect on prices. In some auctions, up to 15% is already paid for natural rubber that complies with the regulations. This is essential to be able to sell products in the European market.

High demand drives prices on the Asia-South America route: perspectives and challenges

In recent weeks, high demand has been observed for Asia-South America, which caused prices to grow above the world average. The industry
 Automotive generates a lot of demand on the China-Brazil route due to the expectation of a future increase in the tariff on electric vehicles, to which is added a commercial reactivation in Brazil. The ports in Brazil show saturation and the lines are prioritizing this route over shipments to Buenos Aires and Montevideo. Prices would remain high during May and space availability will be limited.