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The Price Of Industrial Ruber Sheet Rised, Corporate Gross Margin Will Be Better
- Dec 01, 2016 -

The recent rise in natural rubber prices mainly due to the three largest rubber producing countries in the world, Indonesia, Malaysia and Thailand limited the export volume of natural rubber is expected in March to September will be reduced by 615,000 tons of export, of which, The proportion of restricted sales in Thailand accounted for more than half of the move to boost prices, prices are expected to rise to 2,000 US dollars / ton, or 70% is expected to rise.

From the historical data, the international rubber-producing countries combined to limit exports in history, there have been twice, and this is the only two have brought a significant rise in rubber prices. The first time in December 2008, due to natural rubber prices continued to fall, the International Rubber Union announced in 2009 to cut rubber exports from 915,000 tons, natural rubber spot prices continued to rise, span more than a year, during the largest increase of 147%; The second natural rubber export restrictions occurred in 2012, due to serious natural rubber inventories, the three major rubber producers decided to cut from October 1 rubber exports 300,000 tons, since natural rubber spot price continued to rise against the market trend of more than 5 months , The biggest increase of 25%.

In addition, steady growth in downstream requirement will also increase the price of natural rubber. The automobile industry is the largest tire market, with China's auto sales continue to grow, and then stimulate the requirement for tires. According to the Automobile Association statistics, China's auto market in 2015 the cumulative annual sales of more than 24 million, of which, passenger car production and sales for the first time exceeded 20 million.

Every day theme says, China is the world's largest natural rubber requirement countries, a year of consumption in 400 million tons, while the domestic production of about 700,000 to 800,000 tons, the future development of larger space. With the rise in natural rubber prices, the domestic rubber companies are expected to usher in boom bonus.

Internationally renowned market advisory firm Markets has released a report predicts that by 2020 the market value of rubber processing aids is expected to reach 4.8 billion US dollars, 2015 to 2020 compound annual growth rate of 5.4%.

As known, the rubber processing additives market mainly benefited from the growth in demand driven car. Rubber processing aids are used to improve the properties of rubber, giving rubber more excellent quality, making it suitable for tire manufacturing.

However, the growing number of environmental issues and increasingly stringent government regulations, a restricted rubber processing a major factor in the development of the market. Natural rubber processing will produce wastewater efflux, causing environmental pollution. Wastewater from rubber processing contains high concentrations of BOD compounds. These compounds can be biodegradable, resulting in increased water consumption of natural water bodies, water quality deterioration.

The report pointed out that the Asia-Pacific region is the fastest-growing market for rubber processing aids. Growth in the region was mainly driven by demand growth and increased exports of rubber products to Western markets. The region's economic development to countries in the continued growth in demand for vehicles, which also stimulated the development of rubber processing aids market.

At present accelerator market, mainly due to environmental protection more stringent, many manufacturers cut-off, the market supply can not keep up, so to stimulate prices continue to rise.

1, because the environmental reasons shut down a lot of small factories, making rubber chemicals products can not keep up, leading to the product prices have risen.

2, because China's tire industry, the market demand is expanding, especially in China's auto industry led to the tire product market continues to expand, so the supply side shrink, but the product demand has continued to increase, driven prices continued to rise.