Rubber contracts reduce positions and increase futures prices are weak to the downside

News: 1.
According to the statistics of the First Commercial Vehicle Network, in October 2020, China's heavy-duty truck market sold 129,000 units, down 14.
3% month-on-month and up 41% year-on-year; Cumulative sales in the heavy-duty truck market from January to October reached approximately 1.
365 million units, a cumulative increase of 39% y/y, and a net increase of more than 380,000 units
.
2.
According to Longzhong Information, as of the week of November 5, the operating rate of semi-steel tire sample manufacturers was 71.
67%, up 0.
18% month-on-month and 3.
91% year-on-year; The operating rate of all-steel tire sample manufacturers was 75.
91%, up 0.
17% month-on-month and 8.
67%
year-on-year.
3.
General Administration of Customs: China's rubber imports in October increased by 34% year-on-year to 671,000 tons
.

Market quotation: Shanghai market 19 years state-owned full latex reported 13250 (-600) yuan / ton, Vietnam 3L reported 13150 (-550) yuan / ton, Thailand No.
3 tobacco film reported 18300 (-700) yuan / ton
.
Qingdao market STR20 warehouse spot reported 1590 (-10) US dollars / ton, Qingdao market STR20 November cargo reported 1580 (-10) US dollars / ton
.
Thailand Hat Yai raw material market field glue 46.
8 (-0.
5) baht/kg; Cup gum 38.
45 (-0.
35) baht/kg
.
Domestic Yunnan Xishuangbanna glue into the dry rubber factory 13.
5-13.
7 (+0/+0) yuan/kg; Glue into latex factory 14.
1 (+0) yuan/kg
.
Hainan state-owned glue into the whole dairy plant to produce whole milk 12500 (-500) yuan / ton, into the concentrated milk factory to produce concentrated milk 13000 (+0) yuan / ton
.
Synthetic rubber: Qilu petrochemical styrene-butadiene rubber in North China 1502 market price 11400 (+0) yuan / ton; The market price of cis-butadiene rubber is 10800 (+0) yuan / ton
.

Warehouse receipt inventory: RU warehouse receipt 226460 tons, + 1460 tons; NR warehouse receipts 38,566 tons, - 434 tons
.
Main positions: RU2101 top 20 long positions 88872, - 4316; short positions 118855, - 5943; long and short minus, net space decreased
.

Summary: In the early stage, there was more rainfall in the main producing areas at home and abroad, resulting in tight raw materials, especially in the Hainan production area successively typhoon, rainfall weather has a significant impact, rubber farmers rubber tapping workers are difficult to carry out normally, raw material competition phenomenon is obvious, with the weather to improve production rebound, raw material prices have retreated
sharply.
On the demand side, the operating rate of tire factories continued to increase month-on-month, and was significantly higher than the same period last year, orders remained stable and improving, and domestic heavy-duty truck sales increased year-on-year although they decreased month-on-month
.
Considering that there is still the impact of typhoons in the production area and the shortage of deliverables still exists, the support effect on the futures price is still obvious
.
On the market, the RU2101 contract focuses on support around 14000 in the short term, and it is recommended to trade in the 14000-14800 range; The NR2101 contract focuses on the 10250 line of support and is recommended to trade
in the 10250-10650 range.