Rubber oversupply still exists and demand recovers slowly

Fundamental news, the Tokyo Industrial Exchange (TOCOM) daily rubber index closed down 1.
05%
in the last session.
Qingdao Free Trade Zone warehouse (RSS3, made in Thailand) natural rubber warehouse price increased by 1410 US dollars / ton; The spot market price of Yunnan SCRWF Shanghai dropped from 10175 yuan / ton to 10150 yuan / ton, which is above
10000 yuan / ton.

According to foreign media reports, the new crown virus epidemic has brought a major crisis to the automotive industry, and the European Automobile Manufacturers Association (ACEA) predicts that the number of passenger car registrations in the EU will fall by 25%
year-on-year in 2020.
Following the first wave of pandemic shockwaves between mid-March and May, car sales in the EU market have fallen 41.
5% year-to-date, although this is expected to ease
in the coming months as lockdown measures gradually lift.

In the first three weeks of June, the average daily retail sales of passenger cars were 35,408 units, down 13% year-on-year and 2%
month-on-month, according to the latest data from the passenger association.
Overall, the retail sales performance of the passenger car market in the first three weeks of June was not as good as before
.
Rubber consumption may recover more slowly
.

During the holiday, U.
S.
crude oil adjusted, falling below $40 / barrel, crude oil will still affect the late trend
of rubber.

On the whole, the oversupply of natural rubber still exists, the road to demand recovery is relatively slow, and today's rubber main contract RU2009 is weak and volatile
.