Global natural rubber production will not be sufficient to meet the demand, the global stock of materials to further reduce the natural rubber alternative synthetic rubber production over the past three years can not meet the demand, this trend is expected to continue.
It is expected that the global natural rubber production in 2016 will be less than 11.6 million tons and the consumption will be 12.5 million tons; the output in 2017 will be less than 12 million tons and the consumption is expected to exceed 12.6 million tons or more.
Supply and demand gap, commodity futures prices rose naturally. Analysts said the short-term price of natural rubber is mainly due to Thailand since December last year, floods and the main producing areas in southern Thailand near the cut, synthetic rubber prices and natural rubber prices widened, while domestic infrastructure investment to stimulate the commodity market.
Natural Rubber Association Secretary-General Zheng Wenrong that, due to nearly 5 years Jiaojia continued to fall, if Jiaojia continue to go, no one to tapping. Since last year, the enthusiasm of tapping more and more low, the new plastic resources less and less, but the rubber demand has not been reduced, so the demand is inevitable.
Rubber futures prices in the lead, the rubber production business performance is gradually turning losses. Hainan Rubber (601118, shares it) is expected to 2016 results turnaround, net profit of 47 million -6900 million. While the company in 2015 losses of up to 989 million yuan.
In view of the reasons for the company's significant losses, Hainan Rubber explained that in 2016, natural rubber prices rose by nearly 100%. Driven by the domestic economy, the downstream tire factory operating rates are maintained at a high level, rubber demand, rubber prices rose sharply, the main business increased gross margin.