Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 11, 2015 02:00 AM

China slowdown worsens rubber oversupply

Bloomberg News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    TOKYO—Rubber in Tokyo entered a bear market as a slowdown in China, the world's largest consumer, is worsening a global glut amid rising shipments from producers.

    Benchmark futures dropped 20 percent from a 16-month high reached June 1, meeting the common definition of a bear market. The contract for January delivery fell 1.5 percent to settle at $1,570 per metric ton on the Tokyo Commodity Exchange.

    China's auto association cut its forecast for vehicle sales last month amid a stock-market rout that threatens to dent consumer sentiment. The final reading on a private Chinese factory index on Monday shrank more than expected, while an official gauge on Saturday slid to a five-month low, stoking concern that the worsening slowdown will hamper global trade.

    “A global surplus is widening as demand in China shows no signs of picking up, and Thailand and Vietnam are boosting shipments regardless of low prices,” said Kazuhiko Saito, an analyst at Fujitomi Co., a broker in Tokyo.

    The global rubber surplus may reach 303,000 tons this year, the International Rubber Study Group said by e-mail July 30, revising its January forecast of a 77,000-ton glut.

    The Singapore-based IRSG estimates supply may grow 4.4 percent to 12.6 million tons this year, compared with last year's 1.5 percent drop. Demand is forecast to rise 1.2 percent to 12.3 million tons, slower than last year's 6.7 percent expansion, the group said.

    Rubber supply may grow a further 2.9 percent in 2016 driven by the maturing of trees that were planted when prices were higher, according to the group.

    Rubber exports by Thailand, the biggest producer, rose 1.3 percent from a year earlier to 1.72 million tons in the first six months of 2015, according to the nation's commerce ministry. Shipments by Vietnam, the third-largest producer, expanded 16 percent to 531,000 tons in the first seven months, according to the nation's general statistics office.

    Rubber on the Shanghai Futures Exchange entered a bear market on July 8, and fell 2.6 percent to $1,948 a ton Tuesday.

    Related Articles
    Rubber product trade deficit tops $12 billion in 2014
    Fraley: Firm close to guayule success
    Duty bound: U.S. ITC affirms fees on tires made in China
    Rubber product trade deficit falls 9% in Jan.
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    ExxonMobil to increase olefinic capacity with $2 billion expansion
    2
    Uth: Investment in solar power a reflection of success
    3
    Stellantis rescinds ‘burdensome' contract terms for suppliers
    4
    Our View: Evolution is the solution to industry woes
    5
    Orion supports electrification with new production plant
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION