Natural rubber prices continued to rise led to the situation in the world rubber industry confusion

Natural rubber prices in the past 20 years has reached its highest point since, at the same time, some of the synthetic rubber prices continue to rise. Raw material prices caused by rising operating costs, in this situation, rubber product manufacturers are some other measures to mitigate the negative impact?
The answer is: nothing.
Morris Latex Products Company (Morris Latex Products Inc., Hereinafter referred to as the Morris Company) in the United States is an Oklahoma City NOBLE production of latex medical products manufacturer, the company's CEO, Mr. Walter J. Morris complained: in the past In the past 26 years, this year as a result of rising raw material costs resulted in the worst year operating results. The market demand, and now the entire Pacific Rim countries are affecting the relationship between supply and demand. At present, such a worst case scenario will continue, and in the future there will be even worse.
Mr. Morris said that despite the brutal competition in the rubber market, we are not willing to price increases, but, Morris company or inform their consumers on July 1, the company will raise product prices.
In the past, tire and rubber product manufacturers have been changes in the natural rubber and synthetic rubber product and the proportion of formula to deal with one type of rubber price is too high impact. Gates Corporation (Gates Corp.) Said that the previous 15 months, prices of natural rubber increased by almost double, at the same time, the price of styrene-butadiene rubber production capacity due to a slight surplus down slightly.
However, in any case, want to change the natural rubber and synthetic rubber ratio of the amount of hard tires the company can do or too low. In particular, for those who do use industrial rubber products producers, can do even less, Gates Corporation is an example.
Gates said: tire manufacturer in the formula could reduce the 5-7 percent of the amount of natural rubber as raw material price increases to offset the cost of production brought about by the increase. However, in our line of products on the relatively small size, saving so little rubber, but also may affect the performance of products, but consumers use products that result in increased risk.
Goodyear is a synthetic rubber used in place of natural rubber tire production company. In April this year, the city of Akron-based tire giant announced that it has developed a new polymer products and patented rubber formula, the results so that they can reduce 15% of the natural rubber consumption, while products No performance loss.
Goodyear in 2004 began the study, in 2004, the price of natural rubber has shown signs of price increases. However, after all, Goodyear is a special case, and, even if Goodyear can change the natural and synthetic rubber ratio, in fact, be taken to change the formula, its potential is not unlimited.
Goodyear spokesman said: We do not want to have a daily changing, at the same time, it is important that we have only ourselves to meet the production of synthetic rubber used.
Price and market supply
This year on May 8, standard on the 20th Indonesian rubber (referred to as SIR20, 20 number is the U.S. commercial tire manufacturing division of natural rubber to a division-level) for the first time this year, the price rose to 2 U.S. dollars per kilogram (FOB origin ).
May 15, SIR20 FOB price rose to 2.16 U.S. dollars per kilogram (about 98 cents per pound) last year on October 7, the rubber price is the delivery of the Pier 81 cents per pound last year on June 10 , Pier delivery price of 64 cents per pound.
At the same time, 3 rubber smoke film (referred to as RSS3) rose to 2.40 U.S. dollars per kilogram, this is a person who preferred to remain anonymous given. The source also revealed that: SIR20 and RSS3 price difference is so big has never been before, one possible reason for this is that tobacco sales in the film with a broad network of brokers, especially in Thailand, many of the middlemen .
In the tight supply of natural rubber at the same time, China's rubber demand growth has exacerbated the rubber market fluctuations, the people at the same time condemn those people who is Rubber Daomaidaomai the real criminals.
Those who had no natural rubber now have access to markets, shops and stalls were quite large. For example, British Telecom fund managers have now decided to forward the trend of rubber prices.
The source also revealed that as the market gradually Sheng speculation, there is concern that high fuel prices and other raw materials prices could lead to the production of synthetic rubber production.
Synthetic rubber, the speculation started, but these are just the price of synthetic rubber that is raised according to the International Rubber Research Association (IRSG, International Rubber Study Group.) Show that in 2005, the world's natural rubber consumption Capacity of 8,750,000 tons, synthetic rubber consumption to 11,940,000 tons. In the same year's natural rubber production is 8,630,000 tons, synthetic rubber production reached 12,010,000 tons, natural rubber market is a gap of about 120,000 tons, but the supply of synthetic rubber more than 70,000 tons.
The association said that according to two to three months of this year's data show that for 2006, the current situation is similar with the above mentioned. At the same time, the Association forecast 2006 natural rubber may be a small part of the shortage of supply of about 25000-50000 t around. However, if the supply of synthetic rubber continued to grow, the natural rubber market gap will be even smaller number.
The association also pointed out: However, some areas may be the number of man-made rubber supply exceeding demand. For example, China, the world's largest synthetic rubber market, there could be natural rubber supply, the all new synthetic rubber production project may be to focus on China.
International Rubber Research Association, for a variety of the world's supply of synthetic rubber, there is no specific data, but the forecast related data from the International Synthetic Rubber Manufacturers Association (nternational Institute of Synthetic Rubber Producers), who was also waiting These projections in order to do further analysis.
According to Gates's forecast, due to a number of Asian styrene butadiene rubber production line is about to put into production, resulting in the foreseeable future, and styrene butadiene rubber prices will continue to go soft. On the other hand, due to last year, a French production of chloroprene rubber Polimeri Europa SpA closure of the company, together with DuPont in the United States functional elastomer Company (DuPont Performance Elastomers LLC) a decrease of chloroprene rubber production capacity of these two factors The United States led to the chloroprene rubber market remained tight supply and high prices.
Neoprene rubber in the future market demand is forecast sustained negative growth, high prices and limited supply will accelerate customers to choose alternative chloroprene rubber.
At the same time, who do not want to be named according to the source, the supply of natural rubber, it can be seen in the future period of time, has not shown significant growth. He also said: One thing you must know, that is, production of rubber trees need 7 years to mature and to take plastic, rubber tree planting this year, have to wait until 2013, will it be possible to increase production.
Do our best to
We all come into contact with the company say that they are doing all it could to deal with natural rubber prices and raw material situation, however, they said, business is difficult to have a rotating room.
Michigan is located in the southern port of Trelleborg Automotive Inc. (Trelleborg Automotive) president told reporters that President George Caplea, natural rubber, the present situation simply can not be eased, prices will rise higher and higher, while aluminum Wood, steel, and natural gas prices high, this is the most difficult period.
Some occasions, synthetic rubber used to replace natural rubber is possible, Caplea said that although ethylene propylene diene monomer (EPDM) prices have been rising. But on the whole, the number of rubber producers to take the only strategy is to raise prices.
We have customers and a number of discussions, and we will continue to work with them to explore this, and because there are no signs of change.
According to Maine at Gorham (Gorham, Maine) in the city of Maine Tire Industry Co., Ltd. (Maine Industrial Tires Ltd.) President, Mr. Ken Hebert said the company does not have any room for conversion: All of the company's full product It is natural rubber.
According to Mr. Hebert said, although this has a staff of 130 has not dismiss a person, but the company and its customers are negotiating with them to share some of the increase in the cost and suggested that they purchase from China more tires. It is also these other people are doing, Hebert said Mr. concern.
Tan Tai Tire Company (Titan Tire Corp.) Timor and Tanzania International, Inc. (Titan International Inc.) CEO Maurice Taylor Jr. Said, the total cost of raw materials in August 2005 to May 2006, at least during the Up 30% to 36%.
This means that if you make up for the cost of expenses you would have to increase 15% to 18% of the price, Taylor said. Many companies will be in a few months of the period to raise prices 5-8 percent, he added, but only while Tanzania Timor as it deems necessary to raise the one-time price.
This is the way I operate, I hope, now you tell me the actual situation, I told the others. We hope it is: a best price and the entry into force immediately. After your users, that is to buy the product, you will immediately yell, you say how hateful. In any case, is one such customer. But then they will tell you: 'You're too bad in the extreme. However, by the way, we need more of the tires'. After all, if now out of the market, will not do any good.
Michelin has the prices of raw materials this year is expected to increase from 11% to 15%.
Earlier this year, Michelin, CEO and Executive Director, said that Mr. Edouard Michelin, the tire manufacturer in 2006 because of the rising prices of raw materials and more difficult to reach predetermined performance goals. Today, the company said its expectations for 2006 remain unchanged.
The company said that although high oil prices, but the price of synthetic rubber or much smaller than natural rubber. Synthetic rubber price growth is mainly based on the relationship between supply and demand, however, natural rubber prices and a lot of speculation, as well as environmental factors are closely related.
As we tire of high-precision formula, Michelin can not afford in the short term natural rubber and synthetic rubber between conversion, Michelin said in a written statement said. Through improved productivity as well as the appropriate tires to raise prices, Michelin hope to make up for these rising costs and maintain the company's profitability.