Natural rubber hits record highs

Since October, domestic natural rubber futures have risen by more than 25%, which is driven by cost. In the fourth quarter, tire companies are facing a test, and some companies are responding to price increases.

Comprehensive media November 8 news, recently, following gold, ale, corn and cotton, rubber has become the fifth product to set a new record high price.

The skyrocketing price of rubber has a diametrically opposite effect on upstream and downstream companies. For the relevant companies, the linear rise in costs has made tire manufacturers unable to bear, and tire companies are forced to raise their prices. For the rubber plantation enterprises, the enterprises are happy to see it, and said that the production will be gradually released.

Natural rubber prices doubled in a year Natural rubber is probably the most crazy industrial raw material in the recent period.

On September 30, domestic natural rubber spot and futures prices also hovered around 27,000 yuan/ton, and as of November 4th, the highest price of natural rubber futures reached a high of 34,150 yuan/ton, which has soared by 25% in January. According to the spot price of natural rubber of RMB 16,000/ton in October last year, the price on the fourth day has doubled in one year. On November 8, Hujiao reached a new high of RMB 37,050/t.

The manufacturing PMI data issued by the Federation of Logistics and Purchasing also pointed out in particular that natural rubber is the fastest rising raw material. In October, the purchase price index was 69.9%, while 10 out of 20 industries reached more than 70%, and 3 industries including chemical fiber manufacturing and rubber and plastic products industry exceeded 80%.

According to industry sources, the sharp increase in rubber prices in this round has greatly exceeded the highest price of 28,000 yuan before the financial crisis. Cai Weimin, secretary general of the tire division of the Rubber Association of China, analyzed that there are many reasons for this round of natural rubber price hikes: recently, the prices of bulk raw materials have skyrocketed, and natural rubber has led the rise; rubber demand has risen sharply; natural rubber exporters have Limited; natural disasters reduce the production of natural rubber in some areas; middlemen hype.

In the fourth quarter, tire companies are facing the test. With regard to the madness of rubber prices, the tire branch of the China Rubber Association believes that companies have "cannot afford." The statistics of the tire industry's 43 companies showed that industry profits fell by 22.7% year-on-year in the first eight months of the year, and individual companies’ profits even fell by 91% year-on-year in the third quarter.

Some tire business people have said that opening a factory full capacity is equal to opening up enough to give people money, not enough to send less money. To this end, at present, some large tire companies such as Hangzhou Zhongce, Shuangqian, Triangle, Guizhou, South China, Aeolus, etc. have started to increase tire sales prices, the overall rate is about 5%. However, compared with foreign companies, the price adjustments of domestic companies still vary by about 10%.

A company official said that before September, production was still using natural rubber stocks before the skyrocketing prices. The real skyrocketing of natural rubber began in September. It can be foreseen that the data of tire companies after September will be even more pessimistic. .

It is reported that China Rubber Industry Association held an urgent meeting in Beijing in mid-2010 to respond to the soaring price of rubber. Attending the meeting were Hangzhou Zhongce Tire, Shuangqin Co., Ltd., Guizhou Tire, Jiatong Tire, Tianjin Guolian, Linglong Tire, South China Tire, Tire Tyre, Fengshen Tire, Baotong Belt Industry and other companies. Representatives of companies strongly requested the government to put in the state reserve. Glue to suppress the price of rubber.

Some tire manufacturers said that they should respond to difficulties by adopting a variety of ways. For example, in the diversification of raw materials, choose natural rubber substitutes and increase the use of synthetic rubber. At the same time, he also stated that the association will promptly report the company’s demands to the relevant government departments according to the requirements of the company, and strive to introduce relevant policies that are conducive to the development of the industry.

For tire manufacturers that have a low cost-resolving capacity, the association's series of measures will help them to get out of the dilemma; and for companies that have their own cost-resolving capabilities, the association's measures will help them improve their profits.

In an interview with this newspaper, Mr. Xu of the Jiatong Tire Securities Department stated that in order to cope with rising costs, the company has already raised the prices of some products.

The situation of the rubber company is good Although the tire listed companies are miserable, the continuous rise in the price of rubber will benefit the manufacturers of natural rubber. Sinochem International, which is one of the core businesses of natural rubber, is in a good position.

Sinochem International told this reporter that at present, the scale of rubber planted, processed and operated by the company is 1:4:9, and the average monthly supply of rubber capacity is up to 40,000 tons, which accounts for more than 10% of the domestic market share. The current rubber base is developed. The capacity will gradually release as the rubber tree matures.

According to public information, Sinochem International is involved in all aspects of natural rubber planting, processing and marketing, and is engaged in integrated operations at home and abroad. It is currently the largest and strongest rubber marketing service provider in China, and its rubber business has replaced chemical logistics as the company’s most important Source of profit.