Rubber Drought production, inventory crisis or can affect the PCB industry profits

Rubber Drought production, inventory crisis or can affect the PCB industry profits

 

[100 reported] Although the amount of material used as precious metal, but the PCB board irrigation plastic, waterproof layer are ultimately rubber place. Now, due to the drought in southwest, resulting in sharp drop in rubber production in Xishuangbanna.

 

According to official statistics, as of the end of 2009, Xishuangbanna rubber planting area reached 3680000 acres, the production accounted for 3% of the world's share. As of March 15, 2010, Xishuangbanna rubber affected area of 26.7 hectares, due to delayed tapping and soil moisture factors, this year's conservative estimate of rubber production will be 20% less than last year.

 

"Predictably, the reduction of upstream rubber production will definitely affect the price of downstream end products," said Bai Lunan Market Analyst. The impact of drought will have to be decided by the weather. "If it rains in April, rubber will Usher in the peak tapping period, the increase in output is bound to curb price increases. "

 

Even more worrying is that although China's rubber relies heavily on imports, only the reduction in domestic production is not enough to shake the overall situation. However, the major rubber producing areas in the world have suffered from drought this year. It is also very difficult for the market to estimate the future price volatility of rubber.

 

However, from the performance of the rubber futures market, the capital re-enter the market after the Spring Festival Masukura Hujiao, long domination from the beginning gradually evolved into long and short strength balance, positions have been hovering high, the capital by the weather drought, the state macroeconomic policy adjustment Of the opportunity to speculation, trading volume in the past half or more to remain above 1.5 million, indicating the current strength of both long and short more balanced and difficult to fluctuate substantially.

 

Yunnan Rubber Trading Office March 24 release of transaction information shows that day the highest hanging glue dry unit price of 24,250 yuan / ton, the average price of 24.243 million yuan. The current spot market prices remained at 2.3 to 24,000 yuan / ton, compared with the same period last year rose to 100%. However, despite the prolonged drought, there is no sign of tension in the current market. Market participants generally believe that April will be the key point in the rubber trend will likely reverse the trend.