Since June, due to upstream seasonal supply coming season, coupled by the downstream high inventories, exports and the impact of weak end demand and other factors, Hujiao losing streak in three months. With the industrial chain, and the gradual release of systemic risk, September Jiaojia get support, the main contract 1601 in 11000-12000 yuan / ton range oscillation.

Downstream market to shrink further

The latest data show that China's September manufacturing PMI final value of the new fiscal 47.2, a record low since March 2009, and the seventh consecutive month below the 50 line ups and downs. Terminal car sales data show that in August passenger car sales 1,420,000, down 3.4 percent; January to August total sales of 12.78 million, an increase of 2.6%. Since the second quarter of this year, monthly sales continued to be weaker than last year, cumulative passenger car slowdown dragged down.

In addition, sales of 246,000 commercial vehicles in August, down 0.6%, the cumulative decline of 12.4% year on year. Among them, the breakdown of the data in the demand for natural rubber, the most direct heavy truck sales in a single month fell 28.9%, the cumulative decline of 30.3 percent year on year, is an important reason for low overall sales of commercial vehicles.

Tires, tire exports to China by the United States began to impose high "dual" tariff, August, tire production, exports fell significantly. August, rubber tire tire production to 81.4 million, down 13.8%, the cumulative decline of 15.5 percent year on year; exports of 37.61 million, down 13.5%, the cumulative decline of 5.8% year on year. In order to prevent excessive inventory of finished products, companies take the initiative down the operating rate, as of September 25 the week, Shandong Province steel tire tire companies operating rate of 62.3 percent, down 12.7 percent; domestic semi-steel tire tire companies operating rate 62.1%, fell 26.1%.