China-US trade war impacts rubber trade
Affected by China-US trade friction, China's commodities futures market tumbled on Mar. 23.
Rubber futures plunged over 7% and dropped to its limit.
Iron ore, coke, thread, coking coal and hot rolling dropped over 5%, glasses decreased nearly 5%, and Shanghai nickel, and silicon manganese declined over 3%.
The US president Trump inked a memorandum on Mar. 22 to impose tariff on Chinese goods and restrict Chinese enterprises' investment and acquisition in the US.
The Chinese goods to be taxed value at about 50 billion US dollars.
China's Ministry of Commerce responded immediately.
MoC soon released a list of products imported from the US to be taxed, valued about 3 billion dollars.
MoC spokesman said China didn't want a trade war but was not afraid of trade war.
Rubber and tire sectors are always vulnerable ones under trade friction. Under current circumstance, the China-US trade friction is very likely escalate and influence relevant producers.
Relevant enterprises and industry insiders should watch closely the latest trade news and prepare to react to the upcoming challenges.
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- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
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