Over the next five years China will become the world's largest rubber consumer countries

The next five years, Chinese demand for rubber will continue to flourish for the world's rubber consumption in the first position as a major power firm.

According to statistics, the beginning of this century (2001), China's annual consumption of all types of rubber is about 3,200,000 tons. Of which 1,400,000 tons of natural rubber, synthetic rubber 1,800,000 tons. By 2005, total rubber consumption reached 5,000,000 tons, an increase of 56% average annual growth rate of 11.80 percent to become the fastest-growing history of the period. In 2005 the consumption of rubber, natural rubber consumption is about 2,300,000 tons, representing 64% growth in 2001; synthetic rubber consumption is about 2,700,000 tons, an increase of 50%.

Over the past five years, China's rubber consumption has overtaken the United States and Japan as the world's largest rubber consumer and importer. Although the 2005 total rubber consumption in China has reached 5,000,000 tons, the world's number one rubber consuming country, but did not reach its peak, there is still much room for growth. According to the data related to estimates, in 2006 if China's economy to achieve 8% growth rate, China's rubber consumption (including exports, the same below) is expected to reach more than 5,500,000 tons, or more than 10% growth last year, and maintain Strong growth. Even if the 'Eleventh Five-Year' during the Chinese rubber consumption to maintain only about 8 percent average annual growth rate by 2010, China's rubber-caliber wide consumption will be more than 7,000,000 tons, the world's rubber consumption stable great power status.

Chinese rubber consumption has been showing strong growth, by the following factors.

The first is the continuing high level of China's economic growth. Most of the view that China's economy in the 3 years in a row to achieve the growth rate of 9%, increase in its cycle is not over, including in 2006, '11th Five-Year Plan' period, China can still maintain above 7% economic growth rate, In 2006 in which economic growth can reach about 9%, belong to a higher level of growth stage.

Second, China's economic development is still heavy industry stage. At this stage, a large number of commodity production and investment in fixed assets, triggered a sharp increase in the amount of logistics. In particular the large number of motor vehicle manufacturers and global rubber production capacity in China to transfer, making Chinese tire rubber products, such as the rapid development of the industry has boosted the strength of rubber consumption has increased remarkably. According to the National Bureau of Statistics, China in 2005 all types of tires for tire production 318,200,000, 28.3 percent increase over the previous year, representing an increase of 1.4 times in 2001. In the first quarter of 2006, China's tire production reached 94,970,000, representing growth of 17.6 percent over the same period last year. If the current monthly output is estimated that 2006 full year production will reach 380,000,000, an increase of 21% over the previous year. China's industrial development of the heavy chemical industry phase, to last a longer period of time, at least in the '11th Five-Year Plan' period, but also do not see an end in sight. China's auto production and sales in 2004 'blowout' growth, in 2005 entered a period of steady growth in full year production reached 6,150,000. In the first quarter of 2006, once again showed strong growth. According to statistics, this year, a total of 1 to March, the National Automobile production 1,900,000, an increase of 36.3 percent. If the current average monthly output is estimated that in 2006 China's auto production will reach 7,500,000. According to projections, by 2010, China's annual vehicle demand will be close to or reach 10,000,000, representing an annual increase of 7.46 percent for China's auto production continued to provide a powerful driving force. Affected is expected by the year 2010 China's auto production will reach close to or 10,000,000. Motor vehicle, including the production and the increasing use of a large number of Chinese rubber consumption of strong growth provides a solid basis.

The third is to accelerate the pace of urbanization. In recent years, along with economic development, a large number of migrant farmers, to stimulate the acceleration of urbanization. By 2005, China's per capita GDP has reached 1700 U.S. dollars. By 2010, China's per capita GDP will reach 2400 U.S. dollars, so as to speed up the pace of urbanization in China. In 2005, China's urban population accounts for 43% of the total population, than in the early 1990s grew by almost 1 times. For some time to come, China is also facing hundreds of millions of rural population to urban population in the process. Will be followed by a rapid increase in demand for logistics, both directly and indirectly stimulated by the road transport requirements, such as tire rubber consumption.

Fourth, strong growth in export trade. China's rubber consumption is not entirely a domestic demand, which is mostly used to meet other foreign countries and regions, especially Europe and the United States consumer needs. This is mainly reflected in the tire rubber products, such as the export trade. According to Chinese customs statistics, in 2005, Chinese exports of various types of tires for the tire 225,220,000, 12.8 percent increase over the previous year, representing 103.4 percent growth in 2001, with an average annual growth rate of 19.42 percent. China's rubber exports a large number of the main reasons is China's good infrastructure, strong supporting capacity, abundant cheap labor, thereby ensuring the international market, the strong competitiveness in order to attract the world's major rubber companies have come to China Investment in enterprises in the mainland, the corresponding share of sales in the international market also transfer to the Chinese mainland. According to incomplete statistics, foreign investment in China has more than 40 tire companies. The next period of time, the competitive advantage of the above conditions will not change much, so China's rubber export demand continues strong.