What’ real cost for raw material of latex ?

Market Quotes

Rubber futures oscillated around 15,000, and domestic natural latex spot prices changed little:

Taihua THR barrels 15,200 yuan/tonne, Huang Chunfa barrels 15,300 yuan/tonne; Taihua THR bulk (space pack) 13,200 yuan/tonne, Huang Chunfa bulk (space pack) 13,300 yuan/tonne.

Aftermarket Observation

After the news stimulus, rubber has risen and fallen, and is now back to oscillate around 15,000 yuan again. Below, we take today’s domestic and overseas quotes to calculate the theoretical production cost of rubber.

Thai glue raw materials were reported at 71.45 baht/kg, and domestic Hainan glue raw materials were quoted at 14.1-14.5 yuan/kg, we will take the Hainan Baisha side of the offer to prevail at 14.1 yuan/kg. Thai glue raw material has a dry content of 35%, which is a normal dry content, the industry said that the whole year can be calculated according to the 33%-34% discount dry.

We will be 71.45 baht/kg, 35% dry content to calculate, according to the real-time exchange rate, the equivalent of RMB is 14.1, Thailand glue raw material prices are not much different from the domestic offer in Hainan.

Theoretically, the processing plant per kilogram to be paid to the farmers is 14.1 * 0.35 = 4.93 yuan, this money is to be paid to the farmers, and a tonne of glue is to pay 4930 yuan. And one tonne of glue can be made into 350 kg of dry glue. So the cost per kilogram of dry glue is roughly 4930 yuan divided by 350 kg, equal to 14 yuan, a tonne of dry glue theoretical raw material cost is 14,000 yuan.

The above is only based on real-time theory to calculate. Market circulation may also be calculated on the cost of taxes, processing costs, labor costs, operating costs, logistics, transport costs, etc., if imported there may be import VAT and so on.

The spot price of full latex in the Shanghai market is RMB 14,350-14,450/tonne, and the domestic market price of imported Thai rubber in barrel is RMB 14,500/tonne, and in bulk is RMB 13,300/tonne.

From the cost of raw materials to calculate, it is easy to understand why the price of natural latex this year is so much higher because the cost of raw materials rose a lot. Last year in June at the same time Thai glue raw materials offered only 43 baht/kg, while this year’s offer is 71.45 baht/kg, a full 28 baht/kg higher.

So the downstream factories are always saying that traders raise the price, but it’s not, is the high cost of raw materials, and the domestic circulation of Thai latex imports spot are sold at low prices, there is not much profit. Downstream factories previously low-cost competition, constant price pressures, with the rising cost of raw materials, this competition may be adjusted, can not always eat “low price” dividends.

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