Petrochemical Federation proposes regulation of natural rubber prices

Since the fourth quarter of last year, the price of natural rubber (natural rubber) has continued to skyrocket and has now exceeded the 40,000 yuan/ton mark, causing the entire downstream tire industry to lose money. The relevant person of the China Petroleum and Chemical Industry Federation revealed on the 26th that the Federation has submitted to the relevant authorities proposals for regulating the price of natural rubber in order to save the tire industry. Specific measures include the disposal of the National Glue Natural Reserve, and the reduction or elimination of import tariffs.
According to statistics from the Petrochemical Federation, in November last year, natural rubber prices exceeded the key psychological barrier of 30,000 yuan for the first time, reaching 34,500 yuan per ton, up 11400 yuan from the beginning of last year, an increase of 72.5% year-on-year, becoming the year-on-year rise. One of the largest chemical raw materials.
After entering 2011, the price of natural rubber is still rising further. On January 20, the price of natural rubber once broke through the 40,000 yuan mark, reaching 40,190 yuan, and the spot price was as high as 39,500 to 40,000 yuan. This made the domestic tire companies in the downstream almost fall into absolute territory.
Since 1998, the self-sufficiency rate of natural rubber in China has been declining year by year, which has become a major incentive for price increases. Public data shows that domestic natural rubber self-sufficiency rate fell below the internationally recognized 30% safety and security line for the first time in 2005, and then fell all the way for many years. It fell to 25% in 2007, fell to 22% in 2009, and fell to 20% in 2010.
The petrochemical association's analysis believes that rising costs, expanding demand, and market speculation are the three major factors that increase the price of natural rubber. A number of tire company executives all said in an interview that, in the case of increasingly outrageous prices of natural rubber, if you maintain 20% ad valorem tariff or 2,000 yuan in specific tariffs imported high tariffs, not only the tire industry will lose money across the board, Military tire supply, as well as downstream automobiles, construction machinery and other industries will be affected.
"In the short term, the suppression of rubber prices and the rescue of the tire industry can only be achieved by depositing state reserves and eliminating tariffs," said one person in the industry.
The above-mentioned executives of the Petrochemical Industry Federation stated that the Federation has recently submitted to the State Council a proposal to regulate natural rubber prices. In his view, if you don't do this, the entire tire industry will face difficulties that are difficult to get rid of.
"The specific measure is to increase supply, such as throwing the State Reserve. If this is the case, we can achieve the purpose of price stabilization," said the high-level manager.
In addition, the call for cancellation of tariffs is also one after another in the industry. An industry source stated that as the price of natural rubber continues to climb, record highs have been created and the original intention of protecting the interests of rubber farmers with high tariffs has lost its support.
“Initially, the country determined that 20% of the import tariff of natural rubber was to protect the development of natural rubber and the interests of rubber farmers in the country. In the past, due to the impact of imported natural rubber, domestic natural rubber was not easy to sell. But now it's natural Glue has changed from unsold to unscrupulous, and even rushing to buy it, the foundation for the natural rubber industry to survive without protection is no longer there,” said the source.

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