Hujiao maintains small shocks

Hujiao maintains small shocks December 25th

Basics

Spot situation: In the Qingdao Free Trade Zone, the spot market in Thailand and Malaysia shows mixed trends. The composite plastic prices are quoted in the range of 21,500–21,600 yuan per ton. Meanwhile, Thai and Malaysian 20# compound rubber is priced between 2,920–2,940 USD per ton. The spot reference price for Thai 3# smoke rubber is around 3,080–3,100 USD per ton, while the 20# reference quote stands at 2,920–2,940 USD per ton. Indonesia’s 20# benchmark spot price is quoted at 2,870–2,890 USD per ton.

Comments: Hujiao (25,150, +110.00, +0.44%) experienced a slight adjustment, with spot offers being fine-tuned, but overall trading activity remains weak.

【Quotes Review】

Yesterday, without any major news guidance, Hujiao remained in a narrow consolidation. It opened at 25,000 in the morning, dropped slightly to a low of 24,910, then rebounded with a small rally, reaching a high of 25,135 in the afternoon before closing at 25,065. Masukura volume increased significantly, from 8,958 lots to 147,736 lots.

【Operation Strategy】

With the resolution of the U.S. "fiscal cliff" postponed until December 27, both domestic and international markets lack clear news guidance, leading to continued consolidation in the commodity sector. Shanghai Hujiao showed a Masukura consolidation yesterday, indicating a more balanced short-term position between bulls and bears, waiting for a clear direction. Currently, there are no significant fundamental improvements, and the spot market remains stable, though the weak trend has been gradually accepted by the market. As a result, a sideways movement with small fluctuations is expected in the short term. In terms of trading strategy, it's recommended to focus on band trading—buying at higher levels and selling at lower ones, while avoiding strong trends temporarily.

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