ANRPC: There is little hope that natural rubber prices will rebound significantly in the short term

According to the latest "Rubber Market Intelligence Report" released by ANRPC, it is unlikely that natural rubber prices will rebound significantly in the short term
.
The key points of the report are as follows: The

report pointed out that although the global rubber supply is expected to improve further and the demand in the United States, Europe and India has increased, a series of unfavorable factors may inhibit the growth of global demand in the short term
.
Global logistics and transportation are blocked, freight rates are abnormally high, chip supply and demand shortages, the continued spread of the new crown epidemic, and low vaccination rates may all curb demand
.


According to the report, the failure to accelerate the growth of global natural rubber demand in June was mainly due to the sluggish demand in China, which offset the impact of the rebound in demand in the United States and Europe
.
Preliminary assessments show that global consumption in May and June 2021 is lower than that in April, which is mainly due to sluggish demand in China
.


Global logistics and transportation are still hindered by container shortages, global port backlogs, port traffic congestion, transportation delays, and abnormal increases in ocean freight rates
.
In the past three months, ocean freight has risen three to five times
.
Three months ago, freight accounted for less than 6% of the CIF price of natural rubber sent from Southeast Asia to Europe
.
Right now, freight costs account for about 25% of CIF prices
.


  In addition, the global supply chain is also frequently attacked by hackers' ransomware viruses
.


  Transportation delays and abnormally increased freight rates make raw material prices more expensive for manufacturing companies, not including the impact on sales of finished products
.
The deterioration of global logistics conditions is reportedly hurting the recovery of China and other major natural rubber consuming countries
.


  The report also stated that demand from India, the world's second-largest consumer of natural rubber, is expected to rise in July due to the relaxation of new crown restrictions in most of its domestic provinces
.
The country’s passenger car sales surged by 148% month-on-month in June and 119% year-on-year
.