HAIKOU, Dec.16 (Xinhua) -- Index tools could provide guidance information for rubber industry related companies thus help facilitate rubber industry development, according to experts at the Global Rubber Conference 2019 recently held in Haikou city of south China's Hainan province.
Xinhua-HSF China natural rubber serial price index, which is composed of four sub-indexes including thick latex, standard rubber (TSR20), mixed rubber (20#), natural rubber latex for instance, could provide pricing reference for natural rubber industry, said Zhang Wenjie, index analyst with China Economic Information Service (CEIS) during the event.
Photo: Zhang Wenjie, index analyst with CEIS, makes a speech during the recent Global Rubber Conference 2019.
The downward trend of the four sub indexes reflected a relatively weak rubber industry in 2018 due to oversupply, said Zhang Wenjie, noting that favorable factors such as the acceleration of domestic infrastructure investment and the easing of the international trade environment improved natural rubber consumption expectations at the end of 2018, which were shown in the index figures.
During June to July this year, the index indicators went downward as consumption and exports were impacted by international trade frictions, while during August to October the indexes went relatively stable, according to Zhang, citing relevant Xinhua-HSF China natural rubber serial price index reports.
From the perspective of the domestic natural rubber futures market, Zhang Wenjie said that the correlation coefficient between the Xinhua-HSF China natural rubber serial price index and the Natural Rubber Futures Price of Shanghai Futures Exchange reached 0.9264, indicating that China's natural rubber trading market is increasingly mature.
Through forecast model, Zhang predicted that the index will show a slightly upward trend in the first half of 2020.
Index matters in terms of financial transactions and hedging, according to DAR Wong, Chief Strategic Advisor with Bain Partners & Management, noting that Xinhua-HSF China natural rubber serial price index,if goes global, could exert huge impact on global rubber industry.
It is noted that Xinhua-HSF China natural rubber serial price index was co-compiled by CEIS, an affiliate of Xinhua News Agency and Haiken Group (HSF). (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
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