Home > News > Content
Products Categories
Contact Us

Shenyang Sunnyjoint Chemicals Co.,Ltd

Tel: +86-24-88419556

Email: info@rubberchemical.cn

Wechat: ZY15840488152 

Add: No.145 Dongling Road, Shenhe District, Shenyang, Liaoning Province

Rubber Review:The Turkish Currency Crisis Of The 2018 Glue Price Event
Jan 03, 2019

Not only did it affect rubber prices at the time, but it also had a significant impact on global financial markets in the short term.That, of course, was the Turkish currency crisis in August of this year.The Turkish lira has fallen more than 40 per cent against the dollar since January.The lira crisis has severely affected Turkey's consumption, investment and economic growth, and the country's capital markets have halved.Not just Turkey, but many emerging market currencies have slumped as the dollar has strengthened and Mr Trump's tough trade policies have taken hold.On August 16, when the lira was declining, Turkish people ran out of gold and us dollars crazily on that day. Some people even started to buy luxury goods as a store of value. There was a serious lack of confidence in the domestic market, and the lira crashed.Although the Turkish lira continued its rally under the leadership of the government and rebounded by 2% on the 16th, it was still hit hard by the rally in general.At the same time, Turkey's trade frictions with the United States have intensified, with frantic tariff increases, including 120 percent on passenger cars, 140 percent on alcoholic beverages and 60 percent on tobacco.The duties also include up to $1bn in imports of cosmetics, rice and coal, and the us has begun to raise tariffs on steel and aluminium in Turkey.Two major international credit rating agencies, moody's and standard & poor's, downgraded Turkey to a "non-investment" rating Monday, warning that the country's severe currency crisis will lead to heavy financial burden.But in retrospect, it's worth noting that the currency crisis has also eased travel barriers for those who have long wanted to experience "romantic Turkey."

The price of rubber fell sharply on this day not only because of the Turkish currency crisis, but also because of a number of events on that day.A shares 16 early trading weakness, the Shanghai index jumped short to open 1 percent lower, close to the low point of the early stage, turn red stocks only left more than 100.Iron and steel, oil exploration and other sections of the decline.Futures markets have also been badly affected.As a result, rubber on the 16th ushered in the biggest drop in two months, commodity futures opened down, rubber, fuel plummeted more than 5 percent.The rubber 1809 contract fell below $10,000 on the opening day.

The incident, rubber and some downward fundamental news.In mid-august, the operating rate of domestic all-steel tire manufacturers continued to drop to 67.37%.Glue prices dropped from 44 baht/kg to 41 baht/kg.This led directly to the volatile trend of rubber in the whole of August. Looking back on the day of the Turkish currency crisis, it was also an unforgettable day for the rubber industry.


Related News