Industry Segmentation And Risk Alert

Industry Segmentation and Risk Alert
Significant Performance Divergence Among Companies
Headline enterprises such as Zhongce Rubber and Saiyun Tire have achieved both increased production and prices.
However, some enterprises still face pressure on their main business, and their profitability has not yet been significantly restored.
Institutional Views
Many institutions believe that the tight balance between supply and demand of natural rubber is unlikely to be broken in the short term, and the rubber price is likely to remain moderately strong, but with limited upward potential.
Currently, natural rubber is in a "deterioration warning" state, and risks of high volatility at the top need to be guarded against.
Southwest Futures pointed out that the current situation is a game of strong expectations and weak reality, and the El Niño reduction in production expectation is the core narrative throughout the second half of the year and into next year.