How is the price of natural rubber affected?

Natural rubber is an important material widely used in automobile, chemical industry, medical treatment and other industries, and price fluctuation has a great influence on related industries. The price of natural rubber is influenced by many factors, the most important of which is the relationship between market supply and demand. If the supply of natural rubber is sufficient and the demand is small, the price will fall. On the contrary, if demand exceeds supply, prices will rise.

In addition to supply and demand, the price of natural rubber will be affected by a series of external factors. First of all, the policy factor is one of the important factors. The government's policy adjustment and changes in laws and regulations may lead to changes in the relationship between supply and demand of natural rubber, and then affect the price of natural rubber. Secondly, weather factors will also affect the price of natural rubber. Rubber trees growing in tropical areas need a warm and humid climate, so if they encounter natural disasters such as drought or typhoon, the output of natural rubber will be affected and the price will fluctuate accordingly.

Finally, I want to mention the psychological factors of the market. The fluctuation of market sentiment will directly affect the price of natural rubber. Some important international events or emergencies may cause fluctuations in market sentiment, thus affecting the price of natural rubber. In addition, traders' mood and risk aversion will also affect the market price. When traders think that the price of natural rubber is unstable or risky, they may choose to reduce the trading volume or withdraw from the market, and the price may also drop.