The Tokyo RSS RSS 2007 contract opened at 183.8 yen, up 0.9 yen from the previous trading day. The RSS2008 contract opened at 159.5 yen, unchanged from the previous trading day. The dollar-yen exchange rate was around 109.833 in the morning.
Last weekend, the Tokyo rubber market rose slightly under the support of technical buying, and the far month contract closed near the front line of 183 yen. China ’s January auto sales announced yesterday were down 18% from the same period last year. Except for the Spring Festival this year earlier than previous years, the negative impact of the new coronavirus epidemic on the consumer market may continue throughout the first quarter. Although some tire factories plan to resume work, due to closed or semi-closed management in most cities and towns in China, the operating rate is significantly lower than in previous years. At the same time, pre-holiday orders have gradually arrived in Hong Kong, and the increase in inventory has led to a slowdown in supply and demand in the short term and will further increase. Yesterday it was reported that European auto makers had to close some factories due to lack of spare parts, and the demand for tires may further weaken and suppress the trend of rubber prices. On the other hand, Southeast Asian production areas have entered a period of reduced production and are supported by raw material prices. Futures prices may continue to fluctuate in the short term.
On the spot, the February FOB price of tobacco on February 3 was around 51.94 baht, an increase of 0.22 baht from the previous trading day. The 20-month FOB price of No. 20 standard rubber is around 48.81 baht, which is 0.08 baht lower than the previous trading day. The USS spot price was around THB 40.37, an increase of THB 0.28 over the previous trading day.
From a technical point of view, the RSS far-month contract continued its upward trend last week. 70% of the reverse repo operation of the People’s Bank of China is a 7-day short-term note. Doing more is worth watching. In the balance of the scene, the price rebounded slowly along the lower limit of the cloud, and it was close to the 187 yen shown in the mid-term baseline. From the perspective of position changes, the short-term replenishment is also the main factor. At this point in time, it is possible to break up. Not very sexual. In terms of trading operations, it is recommended to maintain the idea of mid-term range oscillations, and short-term rallies are the main.
Source Global Rubber Markets