SunSirs: Auto Production and Sales Boost China Rubber Demand in October

According to the latest data released by the China Association of Automobile Manufacturers, my country's auto production and sales reached 3.359 million and 3.322 million units respectively in October, representing month-on-month increases of 2.5% and 3%, and year-on-year increases of 12.1% and 8.8%. Among them, new energy vehicle production and sales reached 1.772 million and 1.715 million units respectively, representing year-on-year increases of 21.1% and 20%, with new energy vehicle sales accounting for 51.6% of total new vehicle sales.

The article shows that October's auto production and sales increased by 12.1% and 8.8% year-on-year, respectively, with new energy vehicle sales increasing by 20% and accounting for 51.6% of total new vehicle sales. This significantly boosted demand for tire manufacturing. As a major synthetic rubber raw material, styrene-butadiene rubber (SBR) spot prices are expected to rise due to increased demand.

The growth in auto production and sales, especially the increased penetration rate of new energy vehicles, is beneficial to the demand for automotive seals and hoses. As a key material, nitrile rubber (NBR) spot prices are expected to strengthen along with increased demand.

Based on the 2.5%-3% month-on-month increase and 12.1% year-on-year increase in automobile production and sales in October, with new energy vehicles accounting for over 50%, the demand for inner tubes and shock absorber components has increased, and butyl rubber spot prices are expected to benefit from this demand expansion and show an upward trend.

The article's data indicates strong growth in automobile production and sales, with new energy vehicle sales increasing by 20% year-on-year, strengthening demand for tire manufacturing. As a highly elastic synthetic rubber, butadiene rubber spot prices are facing upward pressure driven by this demand.

The growth in automobile production and sales, along with the 51.6% share of new energy vehicles, significantly boosts tire demand, which is beneficial to natural rubber spot prices. In the futures market, the Shanghai Futures Exchange's main natural rubber contract, such as 2601, closed at 15,315 RMB/ton. Although there has been a slight adjustment recently, expectations of increased demand may support a rebound in futures prices.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.