Synthetic rubber: tight supply demand growth is still very much

In 2005, China's synthetic rubber supply and demand continues to grow, but growth slowed. Total production of 1,632,000 tons of synthetic rubber, up 11.5 percent, increase over the same period last year to reduce the 3.5 percentage point; apparent consumption of 2,318,000 tons, up 6.8 percent, an increase over the same period last year by 4 percentage points; net imports of 68.6 10,000 tons, down 3% increase over the same period last year to reduce the 5.8 percentage point.

Products industry: big increase in output of export good posture

With the global and domestic rapid economic development, in 2005, China's rubber industry despite the high cost, but on the whole, continued to maintain a good momentum of growth, compared to the same period last year with a greater increase. Annual production of tires tire 318,000,000 (including part of the motorcycle tire production), an increase of 28.3 percent, of which the production of radial tire 143,000,000, up 36.3 percent; production 1,240,000,000 pair of shoes, up 22.6 percent.

At the same time, China's rubber export market has also shown a positive trend, not only substantially increase the number and quality improved. Annual passenger cars and vans tire exports 91,790,000, up 33.5 percent; the amount of foreign exchange 3,280,000,000 U.S. dollars, up 54.7 percent. And the annual export of various 6,910,000,000 pair of shoes, up 17.5 percent, the amount of foreign exchange 1,840,000,000 U.S. dollars, up 26%.

Synthetic rubber: supply and demand "goes hand in hand"

Growth in demand for rubber, synthetic rubber led to the production and consumption. In 2005, China produced a total of 1,632,000 tons of synthetic rubber, up 11.5 percent. One SBR (solid) 514,000 tons, up 10.1 percent; butadiene rubber 399,000 tons, down 1%; SBS to 285,000 tons, up 17.3 percent. Synthetic rubber in 2005 apparent consumption of 2,318,000 tons, up 6.8 percent. One butadiene rubber and styrene butadiene rubber were 610,000 tons and 450,000 tons, respectively, year-on-year growth rate of 7% and 0.9%; SBS to 489,000 tons, up 10.6 percent.

In 2005 China's total imports of 765,000 tons of synthetic rubber, up 2.3 percent reduction. However, the main varieties of imports are still varying degrees of increase. BR as a result of which domestic production has decreased year-on-year, a relatively larger increase in imports, imports in 2005 were 86,000 tons, up 7.6 percent; styrene-butadiene rubber imports slightly higher than in 2004, cumulative imports of 117,000 tons, up 1.9%; SBS due to the large increase in domestic production and imports growth rate of smaller, imported a total of 211,000 tons, up 1.7 percent.

NR: "from weak to strong," inhibited synthetic rubber prices

Since the beginning of August 2004, natural rubber prices lower than the price of synthetic rubber running. Downstream business since the fourth quarter of 2004 started to change the formula to increase the amount of natural rubber by 2005 in the first half of the lower reaches of the majority of companies completed the natural rubber for the replacement of synthetic rubber, natural rubber inventory levels decline rapidly, coupled with drought and other climatic anomalies Factors leading to the spot to reduce the impact on supply, in May 2005 after natural rubber prices began to rise a strong shock, the average price in December than in January rose 41.2 percent. The annual average natural rubber price is 15,021 yuan / ton, up 8.8 percent year-on-year. In the fourth quarter of the price of natural rubber has completely reversed the lower than the price of synthetic rubber to run in the market, the average price of synthetic rubber than 3,000 yuan / tons.

Conflicts, natural rubber supply and demand, price trend from weak to strong, the year the price of synthetic rubber have had a greater impact on the trend.

The supply situation remains tight

2006 China will add synthetic rubber production capacity 200,000 tons / year, including the Gaoqiao Petrochemical's 100,000 tons / year of SSBR / BR multi-function devices, the Baling Petrochemical 20,000 tons / year SEBS devices, the new device Jilin Petrochemical EPDM By the 50,000 tons / year capacity and Shanxi Synthetic Rubber Company of 30,000 tons / year of chloroprene rubber device.

Butadiene in 2005 due to tight supply and slowing demand for synthetic rubber, synthetic rubber plant part of the national under-estimated in 2006 along with the increase in the supply of butadiene and prices come down, the supply of synthetic rubber will be more abundant. 2006 first and second quarter of styrene-butadiene rubber and butadiene rubber is no plan to overhaul and is expected to be more abundant supply. However, due to the current serious imbalance between supply and demand of natural rubber and synthetic rubber to its increased use of alternative, it is estimated that in the first quarter and early in the second quarter of synthetic rubber supply situation remains tight.

Tire strong consumer spending to stimulate growth

Economic growth, driven by strong growth in China's rubber consumption, "Five-Year Plan" of China's medium-term has become the world's rubber consumption power. In 2006 China's economy will continue to grow rapidly, further improve people's living standards, consumption structure and consumption levels will be changed, the lifting of the ban small cars, family cars to speed up the pace of auto production will maintain steady and rapid growth Rubber consumption as a whole has a strong role in driving.

At the same time, China's robust economic growth, the rapid development of the automobile industry, a good investment environment and huge market potential, foreign tire manufacturers to speed up the transfer of the pace of China. Chinese tire market has become a multinational tire companies compete on the battlefield, and its strategy in China as the changes in the competitive environment and profound changes. Over the past by the layout of the beach-style into the overall situation, the cautious active investment from the expansion of production from the operation of the service-oriented production changes to the product from a single series. Despite increasing competition, but tires quickly and efficiently will continue to promote the development of rubber consumption. In 2006 due to conflicts between supply and demand of natural rubber, synthetic rubber consumption growth is expected to accelerate.