The Industrial Development and Reform Commission has just published an industry guidance catalog to include recycled rubber in the encouraged industry, but such goodness has not brought more surprises to the industry. At the national waste tire comprehensive utilization technology exchange conference held recently, the reporter heard more about the industry’s concerns about the industry.

Recycled rubber has become the third largest rubber source in China

"Our industry is not happy." A veteran from a reclaimed rubber company in Guangdong told reporters that he would not allow his children to enter the industry.

His remarks are also the opinions of most of the remanufactured rubber business operators who participated in the meeting.

However, compared with the status quo of the struggling industry, the development and contribution of the recycled rubber industry in recent years is obvious to all.

From the “Twelfth Five-Year Development Plan for the Recycled Rubber Industry”, the reporter consulted a group of detailed data on the development of the industry: In 2010, China’s reclaimed rubber production reached 2.8 million tons, and the production of recycled rubber was 6 million during the “fifteenth” period. Tons reached 12.25 million tons in the “Eleventh Five-Year Plan” period. At present, China’s reclaimed rubber production has accounted for more than 80% of global reclaimed rubber production for many years and has become the world’s largest producer and consumer of recycled rubber.

Zhu Jun, president of the China Tire Renovation and Recycling Association, told reporters: “At present, there are more than 1,000 reclaimed rubber production enterprises in China. In 2010, China’s renewable resource rubber production accounted for nearly 39% of China’s total rubber consumption, which greatly compensated for rubber. Lack of resources."

He analyzed that natural rubber is a typical resource-constrained industry. It has strong selectivity for environmental climate and irreplaceability in the region. Its planting area is limited and its output growth is limited. The main material of synthetic rubber is oil. Only 8 tons of crude oil produces 1 ton of synthetic rubber. Therefore, it is of great potential to vigorously develop the renewable rubber industry in the Chinese market.

The data shows that China is the world's largest rubber consumer country and has been ranked first in the world for nine consecutive years. However, China is also a country where rubber resources are extremely scarce. Every year over 75% of natural rubber and over 40% of synthetic rubber are imported, and recycled rubber has become China's third largest source of rubber. It is estimated that every 3 tons of recycled rubber can replace 1 ton of natural rubber. Then, in 2010, China produced 2.8 million tons of recycled rubber, which is equivalent to providing more than 900,000 tons of natural rubber for the rubber industry.

In 2009, China produced 233 million waste tires each year and weighed about 8.6 million tons. If it is recycled, it will be equivalent to 5 years of natural rubber production in China. In terms of comprehensive utilization of used tires, China has initially formed old tires for refurbishment and remanufacturing, and waste tires for the production of recycled rubber, rubber powder and pyrolysis have four major business segments. The reclaimed rubber accounts for more than 75%, and the scope of application is also extensive. For example, radial tires can be added by 5%, bias tires can be added by 10%, motorcycle tires, conveyor belts, and seals can be added by 20%, and bicycle tires can be added by 30. %Wait.

Multi-factors lead to difficult survival in recycled rubber industry

In recent years, China’s emphasis on the renewable resources industry has been given advice on the development of remanufacturing industries, the development of renewable resource recycling industry guidance, and the decision to accelerate the cultivation and development of strategic emerging industries have encouraged the development of renewable resources industry. During the "Twelfth Five-Year Plan" period, the country will focus on promoting the comprehensive utilization of resources also include waste tires (rubber) into it. However, behind many policy positives, objective reasons such as high taxation, import restrictions, and export scissors are making the profits of the reclaimed rubber industry difficult and difficult to survive.

Wang Yangzuo, the former deputy director of the Environmental Protection Bureau, retired from office and became the director of the Import Renewable Resources Working Committee. In recent years, he has been calling for the industry to cancel the import restrictions on waste tires.

“The developed countries are snapping up renewable resources. For example, Canada has 4 billion imported renewable resources each year.” Wang Yangzu told reporters.

Wu Yinghong, the deputy secretary-general of the Central Armoring Society’s Rehabilitation Rubber Branch who just returned from a study of the use of renewable resources in the United States, also told reporters: “The United States currently makes heavy use of waste tires and uses 2.08 million tons annually, mainly for power generation, cement and papermaking. In the industry, 1.35 million tons of plastic powder, 100,000 tons of export, and 130,000 tons of refurbishment

In 1990 they also stored 1 billion scrap tires, which are now 80 million. Many developed countries are snapping up this market with us. ”

“The import of open waste tires is imminent. The use of rubber in our country continues to expand and will reach more than 7 million tons per year. At present, domestic waste tires are basically used up, and used tire resources are fiercely competitive in the international market,” said Wang Yangzu.

In addition to restrictions on imports, the recycled rubber industry is struggling with exports.

“Our reclaimed rubber accounts for 80% of the world's total output because the 'scissors difference' can't go away.” Professor Cheng Yuan, executive vice president of the China Tire Recycling Association, told reporters.

He specifically analyzed: If Australia makes a subsidy of 100 Australian dollars for waste tire use enterprises, which is equivalent to seven or eight hundred yuan. On the contrary, due to the inability to import, China's waste tires will increase annually. Enterprises need to buy a ton of waste tires are now nearly 2,000 yuan, two together, and Australia's price difference of about 2800 yuan per ton.

“China's reclaimed rubber accounts for 80% of the world's total output, and waste tires recycle 80%, but there are two 80% of our reclaimed rubber but no pricing power.” Cheng Yuan told reporters: “This is a trade in the industry, in disgrace, in disguise This is worth reflecting on the entire industry due to various factors such as price cuts and large user arrears."

One of the more important factors is the higher tax burden in this industry.

The Secretary General of the China Rubber Renovation Association's Rehabilitation Rubber Branch, Secretary-General Li Rulin, told reporters: “Over the years, the country has been supporting and supporting the development of renewable resource companies and has adopted a policy of exempting value-added tax for enterprises that recycle various waste materials and allowed 10% of the Output tax credits, but this policy has been abolished by 2011, and China's waste material recovery system still lags behind, most of them are private individual acquisitions, can not obtain VAT invoices, can not be deducted, resulting in more taxation of renewable resource companies high."

He specifically analyzed: “Since the main material for manufacturing recycled rubber is scrap tires, the current purchase price is nearly 2,000 yuan per ton, and the acquisition cost of scrap tires accounts for about 65% of the production cost. Moreover, over 90% of scrap tires come from private individual acquisitions. In 2008, some reclaimed rubber production enterprises obtained qualifications for the recycling of waste materials, and the acquisition of used tires was exempt from VAT, and the input tax was deducted by 10%. About 6%, in 2009, waste materials recycling implemented a 70% return policy after first levy, and the value-added tax for recycled rubber rose to 8.81%. In 2010, 50% after the first levy, and the reusable rubber tax rate rose to 11.54%, which is much higher than National companies have a 6.65% tax rate."

Zhu Jun told reporters: “We actively call on the government to establish a standardized waste tire utilization system, from the source to the limited waste tires flow to legitimate production enterprises, and resolutely put an end to local companies such as oil refining does not meet the standards. And hope that as soon as possible to resolve waste tire imports To lift the ban, actively seek preferential policies for VAT reduction."

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