Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Head of Content, Data & Research, Helixtap

Arusha Das

Head of Content, Data & Research

Commodities

<ul><li>The crackdown on power consumption coupled with the crisis of Evergrande Group looms large over the demand for natural rubber in China as the industrial manufacturing sector of the country faces a setback. With the ongoing Evergrande crisis and Beijing’s unprecedented curbs on the property sector, the power supply crisis has affected Jiangsu, Zhejiang, and Guangdong impacting the Chinese industrial manufacturing sector.This has jeopardized the natural rubber markets, given China accounts for around 40% of the global demand.</li><li>According to various industry sources, there is a lot of anxiousness around the revival of demand in China. The companies operating in the manufacturing industry are hit the hardest, so China must rebound as quickly as possible for the rubber markets to revive. “The power shortage is impacting the factories in China, and no one knows how long it would take to reach normalcy.</li><li>No one can predict the future at the moment,” said a market source, adding the debt issue due to Evergrande has also wavered the market confidence. According to some industry reports, a prolonged power crisis would be a significant setback for the rubber market.</li></ul>

The crackdown on power consumption coupled with the crisis of Evergrande Group looms large over the demand for natural rubber in China as the industrial manufacturing sector of the country faces a setback. With the ongoing Evergrande crisis and Beijing’s unprecedented curbs on the property sector, the power supply crisis has affected Jiangsu, Zhejiang, and Guangdong impacting the Chinese industrial manufacturing sector.This has jeopardized the natural rubber markets, given China accounts for around 40% of the global demand.According to various industry sources, there is a lot of anxiousness around the revival of demand in China. The companies operating in the manufacturing industry are hit the hardest, so China must rebound as quickly as possible for the rubber markets to revive. “The power shortage is impacting the factories in China, and no one knows how long it would take to reach normalcy.No one can predict the future at the moment,” said a market source, adding the debt issue due to Evergrande has also wavered the market confidence. According to some industry reports, a prolonged power crisis would be a significant setback for the rubber market.

Rubber Industry Grapples With Aftershock Of China’s Crackdown

SGX Rubber Future TSR20

Rubber Industry Grapples With Aftershock Of China’s Crackdown