The price of rubber on the Chinese market is losing traction and shows little signs of resiliency.
Analysts blame unsold inventories for the fall.
The annual demand for rubber in China is currently about 700,000 tons. However, stock imported from Malaysia, Thailand and other countries last year are still waiting to be sold. These inventories weigh heavily on the domestic rubber market. Simultaneously, Chinese rubber firms are running under capacity and some have even closed. This, too, is due to weak demand, especially for tires, a direct cause of deflated rubber prices, the article said.