Recently, after gold, ale, corn and cotton, rubber has become the fifth product to set a new record high in history.

The skyrocketing price of rubber has a diametrically opposite effect on upstream and downstream companies. The reporter learned from relevant companies on November 4, 2010 that the linear rise in costs has made tire manufacturers unaffordable, and tire companies have been forced to raise their own prices. For the rubber plantation enterprises, the enterprises are happy to see it, and said that the production will be gradually released.

Tianjia price doubled in a year

Natural rubber is probably the most crazy industrial raw material recently.

On September 30th, domestic natural rubber spot and futures prices also hovered around 27,000 yuan/ton, and yesterday, 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 price of natural rubber in October 2009 of 16,000 yuan / ton to calculate, yesterday's price has doubled in a year.

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.

Fourth quarter tire companies face test

For 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.

"Now opening a factory full capacity is equal to opening up enough to send money to people, not enough to send less money." Some tire companies have reported. 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 told reporters that "before September production was still preceded by skyrocketing prices of natural rubber stocks, the real skyrocketing of natural rubber started from September, and it is foreseeable that various tire companies will be after September. The data will be 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 companies increase their prices

According to the association’s sources, production companies should adopt various ways to cope with difficulties, such as making efforts in the diversification of raw materials, selecting natural rubber substitutes, and increasing 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, Mr. Xu of the Securities and Communications Department of S.G.T. said that in response to rising costs, the company has already raised the prices of some products.

Good situation for rubber companies

Despite the bitterness of listed tire companies, the continued rise in rubber prices will benefit natural rubber manufacturers. Sinochem International, which is one of the major businesses for natural rubber, is in a good position.

Sinochem International told reporters that at present, the rubber planted, processed and operated by the company has a scale of 1:4:9, and the monthly average rubber supply capacity is up to 40,000 tons, which accounts for more than 10% of the domestic market share. The currently developed rubber base production capacity As the rubber tree gradually enters maturity, production will gradually be released.

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.

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