Core Viewpoint - The rubber futures market is experiencing a significant decline, influenced by the zero-tariff negotiations between China and Thailand, as well as changes in the trading regulations for standard warehouse receipts by the Shanghai Futures Exchange [1] Group 1: Market Trends - Rubber futures are leading the decline in the futures market today [1] - The price of rubber may continue to decrease due to the recent developments in trade negotiations and regulatory changes [1] Group 2: Regulatory Changes - The Shanghai Futures Exchange has modified the trading rules for standard warehouse receipts, which could impact rubber pricing dynamics [1] - The zero-tariff negotiations between China and Thailand are expected to affect the supply and demand balance in the rubber market [1]

Group 1 - The domestic futures market for rubber shows a downward trend, with the main contract for 20 rubber futures opening at 12,870.00 CNY/ton and experiencing a decline of 3.66% [1] - As of May 27, the NR warehouse receipts were at 30,744 tons, indicating a low quantity and a high virtual-to-real ratio, suggesting a stronger performance for NR [1] - The demand side remains weak due to external trade environment impacts and seasonal off-peak periods, leading to cautious purchasing behavior from downstream [1] Group 2 - The Chinese and Thai governments are discussing the implementation of zero tariffs on rubber, with a consensus to establish a joint working group to promote tariff reductions and trade barrier resolutions [2] - Although the zero tariff negotiations have not reached a final outcome, market expectations have been adjusted, leading to a decline in raw material prices [2] - The current market lacks clear directional guidance, with stable downstream tire demand but overall weak rubber price trends [2]