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Rubber prices - a chain reaction

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Rubber prices - a chain reaction

Release date:2017-01-05 Author: Click on:

Over the past few months, the natural rubber market prices continue to rise, causing a chain reaction in the relevant industries. The most prominent performance is that the major tire companies have joined the ranks of product prices.

How do people look at the rise in the price of rubber, recently, the reporter conducted a questionnaire survey by WeChat and the site.

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Restrictions on export of rubber producing countries

The past two years, natural rubber prices all the way down, at the beginning of this year had dropped to the lowest point since the financial crisis. This has aroused the vigilance of rubber producing countries.

In order to protect the interests of their own country, in March 2016, Thailand, Malaysia, Indonesia reached an agreement, decided to reduce the amount of natural rubber exports, in order to stimulate market sales, stable prices.

The natural rubber output of the 3 countries, accounting for more than 60% of global rubber production. Its limiting effect, soon spread to the entire rubber industry chain.

In the survey, 33% of respondents believe that the production of export restrictions, and the amount of the downstream tire and rubber products such as rubber is not reduced, which led directly to the soaring price of rubber.

Another 23% of respondents believe that extreme weather in Southeast Asia ravaged, resulting in a number of major producers of rubber production has declined, which indirectly affects the price of rubber.

There are 26% of respondents believe that the tire business to increase demand for rubber, rubber prices to stimulate the rise.

Plastic price uncertainty

China as the world's largest natural rubber demand, the consumption of more than 4 million tons a year, while domestic rubber production is only -80 tons of foreign dependency of more than.

Driven by favorable policies, industry insiders predict that China's total production and sales this year will rise steadily.

Globally, the economy is still facing greater challenges, but the decline in oil prices makes the car cost reduction, stimulate demand for cars. In addition, the rapid development of new energy vehicles, the domestic automotive market to bring new impetus.

Indonesia rubber industry judgment is that the price of plastic prices, can only be maintained until the first quarter of 2017.

They give a reason is that after Donald Trump was elected president of the United States, the global economic situation is uncertain.

Reporter's findings, it seems to confirm this view. 43% of respondents believe that the reasons for the rising price of rubber complex, the market situation is changing rapidly, as to when the price of rubber can rise to when, not to say.

Only 17% of respondents expect the price increases will last for up to one or two years.

The author believes that the price rise will last for six months and two months, respectively, accounting for 22% and 18%.

Tire production cost

Reporters learned that, in addition to rubber, carbon black, steel cord and other tire raw materials prices are rising.

Raw material prices continue to rise, so that the tire enterprise cost pressure suddenly increased, the meager profit margins suffer extrusion.

In the reporter on the industry and major dealers in the survey, 45% of respondents said that the tire enterprises should be transformed and upgraded, improve product added value, thereby reducing the pure dependence on raw materials.

39% of people in the industry agree that the practice of product prices. This shows that the domestic tire companies have recently raised prices for products, and raw material prices have a direct relationship.

Natural rubber prices have soared, people will think of the other out of the way paths. 16% of respondents said that the extensive use of synthetic rubber, is also a good choice.


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