Glue is an indispensable strategic material for any sovereign state.The importance of natural rubber network has been mentioned in previous articles (why is rubber a strategic material in China?Rubber plays an important role in many industries such as transportation, industrial mining, agriculture, forestry, water conservancy, military defense, civil construction and medical and health care.However, not every country has its own natural rubber production areas, because natural rubber trees can only be grown in a specific environment, so the possession of natural rubber reserves has become an essential strategic measure of each country.So what will happen to the price of natural rubber in the event of war?
War must have the consumption of natural rubber, for example, some more subtle material transportation on the tyres, medical gloves, weapons and military equipment, and so on all need a large supply of rubber, demand went up, natural rubber market price will be higher, especially some involved in the war, and low rubber resources reserves country, need to buy in large quantities, the price goes up.
Another aspect, the occurrence of war for commodities such as crude oil will cause strong influence, in 2011, for example, the war in Libya, the war caused the crude oil market volatility, uprising began in February 15, 2011, the price of crude oil from began to push up the next day, a month after the rose $20, to rise to a high of $115 in May.These commodities with the emergence of war prices rise, to a certain extent will stimulate the rise of rubber prices.
Also, when the war is over, commodity prices are likely to fall sharply. Rubber is no exception. There is a relationship between market sentiment and fundamentals.For example, in the late stage of the war in Libya, after the killing of osama bin laden in Japan on May 1, the price of crude oil suddenly fell from a high to the end of the war in October, and the price continued to decline.Short selling sentiment follows expectations that the war will no longer require large supplies of crude oil, and that there may not be sudden high demand once decisive progress is made or participants in the war have expectations and plans for material purchases once the war is under control.
Of course, we are in the analysis of relations, and not in the current rubber downturn in the market environment to hope that there is any war, no matter what, war will cause damage to innocent lives, natural rubber network hope world peace, but also hope that in a peaceful environment, the price of rubber can be satisfactory!