Chinese rubber market new resources to expand

In the first half of 2006, China's rubber resources to add a high level of growth, a substantial increase in synthetic rubber production, increasing imports, but a more robust consumer demand, the market still has the tight supply and demand situation, while global commodity prices rising strongly, making domestic Market prices risen sharply. Rubber is expected in the second half of the domestic market supply and demand situation will not be any major change, prices will remain relatively high.

Additional resources for rapid growth

First half of 2006, and increased imports in the domestic synthetic rubber to support strong growth, new rubber resources has been to maintain a high level of growth. According to statistics, from 1 to May this year, a total of the additional resources of about 2,030,000 tons, up 17.1 percent. Natural rubber in which about 720,000 tons, up 10%; 1,310,000 tons of synthetic rubber, up 21.4 percent. New this year is expected to rubber national resources will be more than 5,100,000 tons, up 10%, well above the level of last year. Among the additional resources of natural rubber output of about 2,000,000 tons more than that of synthetic rubber in the amount of additional resources to more than 3,000,000 tons, respectively, over last year an increase of 9% and 14%.
2006 domestic production normal weather into April, the areas being cut open, natural rubber market volume increased gradually. But in 2005 a typhoon on the production of natural rubber to the continuation of the negative impact of the 2006. In the first half of the national natural rubber production is estimated at around 180,000 tons, roughly flat with the same period last year. In the second half if no serious natural disasters, natural rubber output is expected to remain at around 580,000 tons. At the same time, increased production of synthetic rubber. According to statistics, the first 5 months of this year, the national production of synthetic rubber 766,800 tons, up 17.6 percent. May output of which 153,000 tons, up 7.6 percent. In accordance with the existing growth momentum, synthetic rubber output is expected to reach 1,800,000 tons, an increase of 11% over the previous year.

Increasing the number of imports

So far this year, Chinese imports of rubber on the increase. According to customs statistics, a total of the country in May to various types of rubber imports 1,145,000 tons, up 18.2 percent. The first 5 months of imports pose a rubber, natural rubber imports a total of 600,000 tons, up 12.1 percent, an increase of 37 percent level; import 545,000 tons of synthetic rubber, up 27.1 percent, which will totally change the same period last year imports Decline. Rubber is expected in the second half of year-on-year increase in imports will fall throughout the year various types of rubber imports will reach 2,800,000 tons, up 10%. The annual natural rubber imports will reach about 1,500,000 tons more than last year growth of about 6%; import 1,300,000 tons of synthetic rubber around the same period last year representing an increase of 20%.

Strong market prices rise

In the first half of this year, car production in the same period last year representing an increase of 30%, tire exports increased by 15.5 percent. Affected, the first 5 months of major rubber - tire production 165,570,000, an increase of 13.8 percent, continue to maintain double-digit growth. It is estimated that in the first half of this year, the National various types of rubber consumption is about 2,700,000 tons, up 12.5 percent. It is estimated that rubber consumption will exceed 5,000,000 tons, an increase of 15%.
By the sharp increase in demand, the price of rubber in the country last year risen sharply again on the basis of a strong rise in domestic natural rubber production is running high. 6 to the end of the focus areas to monitor the standard natural rubber on the 5th rubber prices in the 25,000 yuan (price tons, the same below) or more, styrene butadiene rubber (Rosin) has more than 16,000 yuan, an increase in the 4 percent; production in Hainan District natural rubber supply tension, the highest price of latex more than 18,000 yuan, the price of rubber has been more than 20,000 yuan.
But the high price of rubber in new resources to stimulate significant growth, will curb consumer demand. If the domestic tire production in March year-on-year increase of 26.9% in April down to 12.6 percent, in May increased by only 5.1 percent for the first time the median dropped to less than 1. May tire for tire production 35,400,000, a decline in March than 8.6 percent. In addition, speculative funds stir up the lion's share of the speculative premium in the preceding period of the callback market did not completely whitewash of these bubbles. Therefore, we must watch out for the future of the rubber market and sung very bad.