The expansion of production capacity decline in the price of rubber additives market is not optimistic about prospects

Since 2006, China's rubber chemicals production capacity increase, the market is becoming increasingly fierce, almost all varieties of products, prices showed a downward trend, some of the leading products in particular antioxidant rubber prices have fallen substantially and quickly reduce profit margins, some of the serious variety Backlog.
Year-to-date, a number of rubber chemicals prices down month by month, rubber antioxidant especially for the second-Amine and quinoline decline in prices is very large, rubber accelerator is a relatively small drop in prices. According to statistics, in May 2006, rubber antioxidant 4010NA, 4020, RD, 3100, BLE, MB (refined) average price of 31,200 yuan (price tons, the same below), 32,500 yuan and 14,000 yuan, 39,000 Yuan, 20,000 yuan and 38,000 yuan, respectively, year-on-year decrease of 19.2%, 20.7%, 35.19%, 7.2%, 9.1%, 5%, with antioxidant RD price decline, the manufacturers almost no profit. Rubber accelerator M, DM, CBS, DZ, NS, TMTD, D average price of 15,500 yuan, 17,300 yuan and 24,500 yuan, 35,000 yuan and 27,500 yuan, 10,000 yuan and 25,000 yuan, respectively, year-on-year decline 7.7%, 8.9%, 2%, 7.9% and 8.3%, 23.1%, 3.8%, in particular the accelerator TMTD large drop, there is no basic profit and other species are also shrinking profit margins.
This year, leading to a significant decline in prices of rubber chemicals due mainly to the following:
First, production capacity and production has grown rapidly. From 2004 to 2005 as a result of China's rubber chemicals production and sales booming, the domestic rubber chemicals set off the building boom. Statistics show that in 2005 domestic production of rubber antioxidant 82,600 tons, up 20.8 percent; rubber accelerator for the production of 138,000 tons, up 31.4 percent. 2006 1 to April, China's rubber antioxidant production than the same period last year, about 12%; 14.5 percent growth promoter. The rapid growth of which there are varieties of antioxidant 4020, NS and the promoter CBS, which showed that China's rubber and tire industry on the environmental performance of the additive rapid growth in demand. Since 2005, domestic rubber chemicals set off a building boom in 2006 from 1 to May promoter major rubber companies, such as an organic plant in Tianjin, Shandong single county, the town of Jiang Zhenbang, and so have the expansion of production facilities, there are a number of new enterprises Promoter production; At the same time, new rubber antioxidant capacity more, the United Kingdom Sifu Te Industrial Co., Ltd. plans to an economic development zone in Shandong Huayang 20,000 tons / year and the 4020 Anti-ager 4010NA devices, and support the building of 20,000 Tons / year of production Aminodiphenylamine, Germany's Lanxess in Tongling joint ventures with local building 10,000 tons / year plant antioxidant 4020, is expected to put into operation by the end of 2006.
The second is due to the impact of rising raw materials, tire and rubber companies generally good economic returns. Because of the quick growth in tire production, rubber consumption increased, resulting in very tight supply and demand of natural rubber prices rising. According to statistics, in May 2006, the domestic price of natural rubber rose 53.2 percent to 19,500 yuan; synthetic rubber affected by the price of crude oil prices have been high in May 2006 domestic late styrene butadiene rubber (1502) price of 1.76 Million, up 21.4 percent. Rubber prices, the domestic tire industry led to the production and management difficulties, some of the enterprises losing money, and the effectiveness of the tire business in the doldrums, but also to rubber chemicals prices.
Third, aniline prices of raw materials, rubber chemicals led to lower production costs. According to statistics, in 2006 from 1 to May aniline domestic prices remain at 12,000 to 12,500 yuan, while in the same period last year, the price is about 14,000 to 15,000 yuan. With the China National Petroleum Corporation Jilin aniline return to work, Shanxi Tianji 136,000 tons / year aniline plant will soon put into operation, as well as the Huayang Shandong, Jiangsu Shuangliang aniline, and other business unit is scheduled to completed and put into production in the second half of 2006, is expected in the second half of 2006 Aniline domestic new capacity will reach 350,000 tons / year or so, aniline surplus is a foregone conclusion. In crude oil prices remain basically unchanged under the prerequisite of is expected in the second half of the domestic price will decline aniline, which will lead to the rubber chemicals prices again declined.
Fourth, although the current domestic exports large rubber chemicals, rubber and promoter of the potential increase in exports of small, rubber antioxidant species in part because of intellectual property rights, export considerable resistance, which will contribute to China's rubber chemicals prices .
To sum up, is expected in the second half of China's rubber chemicals serious surplus production capacity, competition will become fiercer, prices fell further, partly due to the small and medium-sized non-profit space devices will face the dilemma of production, the outlook is not optimistic.