It is understood that the downstream tire enterprises hot situation continues, the current orders generally lined up, construction is still high before the spring festival. Raw material from the end of November, December, Yunnan, Hainan, Southeast Asian producing area will gradually stop cutting into the period, new supply is gradually reduced, the market will stop cutting test period inventory stock supply situation will continue. The expected 2017 year in the two quarter, the spot will continue to reflect the contradictions, the two quarter prices can be expected.

After the reorganization of supply chain value return and restocking will continue

From the point of view of a longer cycle, rubber after 6 consecutive years of decline, the whole supply chain is seriously damaged, repair the current from the start price will continue to expand.

Over the past few years, in the upper reaches of decline damaged in the most prominent, the price has exceeded the limit of long-term cost, caused the rubber farmers abandoned the shortage, cut, glue factory bankruptcy integration. The middle reaches of the trade circulation continuous passive to speculation, to the inventory, the spot level after the mighty wave crashing on a sandy shore short of energy has already cut. The downstream long-term maintenance of low inventory purchasing strategy, but benefit from raw materials, sustained low end market demand expansion, the overall scale and profits continue to grow.

The current rally is to repair the entire rubber supply chain value distribution, the future upstream of the dilemma will be improved, the whole industry restocking will be further expanded. Rubber will be accompanied by other commodities in the macro fundamentals, fundamentals, techniques, funds face multiple bullish superposition, prices continuing steadily upward. In the long term, to confirm the long-term value of natural rubber in the long.