Rubber could turn into a vicious circle

Into this week, and Shanghai Dong Jingjiao plastic take unilateral decline, and connect to a record low, were easily fall below 220-230 yen / kg and 18000-19000 yuan / ton important bit integer.

As of Thursday, the contract fell Dong Jingjiao 4.8-6.3 yen / kg, to 206.5-218 yen / kg; Hujiao fell sharply, 17900-19070 yuan low to run the region, the main contract was down 611 to 350 yuan 18,090 yuan / ton, 24-total volume slightly to 176,630 in hand, a net increase of positions 3074 to 48,120 hand in hand.

Reported, as a result of the current international Jiaojia below 200 cents / kg, far lower than the May-July Chinese rubber producers and importers, exporters, signed a contract price of 230-280 cents / kg (duty-paid imports Cost as much as 24000-29000 yuan / ton), importers take serious stock of the devaluation of the floating losses have far exceeded the amount of the contract accounts for about 10% of the deposit. Weak part of the capital, the smaller the deposit of importers at the expense of choice, then give up the goods in order to avoid deep Jiaojia increase the risk of falling. Some of the major tire companies are due to the strong financial strength, on a larger scale, not in the event of default.

It is reported that the estimated size of the breach of rubber imported 5,000 tons of imports of these goods have entered the Qingdao Free Trade Zone warehouse. The latest report also said that according to the Thai city of plastic rubber traders estimated that since July since the default number of Chinese rubber importer to reach 100,000 tons.

Jin Koujiao spot because no one received goods, rubber exporters will be forced to re-sales, which have a market of more rubber down the role. At the same time, importers in the city of plastic disposable goods in breach of contract, which is equivalent to many in the futures market is set to undertake to give up, the choice of stop-loss Zhancang the initiative, which will no doubt be suppressed Jiaojia. In addition, importers of goods received default triggered Jiaojia down, it may lead to a new import breach of contract. Such imports fell Jiaojia breach of contract and may form a vicious circle, and promote continuous Jiaojia down, straight record low.