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Rubber prices low for long-term health effects of industrial development

Number of visits: Date:2014-06-06


World rubber prices continue to decline, the cost of long-running near the line, so that rubber farmers miserable, mining glue enthusiasm drops. Although the world main rubber producing countries have taken measures Jiaojia but still no signs of a rebound. I believe that if unilateral rubber prices continued downward trend in the world of rubber cultivation and distribution system will be adversely affected. 
     First, the low rubber prices have taken a serious impact plastic and rubber farmers' enthusiasm seed gum, rubber production decreased, the decline in exports. According to Association of Natural Rubber Producing Countries (ANRPC), said members of the Organization of natural rubber production in March fell 5.5% to 749,200 tons. ANRPC 2014 Thailand's natural rubber production rose less than 7 percent last year, the Indonesian production growth will be flat with last year's 4.6 percent. The first four months of this year, Vietnam exported 196,000 tons of natural rubber, down 15%. According to the Indian Rubber Board data, in 2013 India's natural rubber output 849,000 tons, down 7.6%, while rubber yields also fell, from 2008 to 1867 kg by the year 2009 / ha, down from 2012 to 2013 the annual 1200 kg / ha. 
     Rubber low price in Thailand also evolved into a political event. Thai rubber farmers organized several protests aimed at forcing the government to step down. Thailand's second largest rubber producer Bundit deputy general manager, said in an interview, natural rubber production in Thailand in February by the monthly average 300,000 to 350,000 tons decreased by 10% to 20%, many factories have difficulties in obtaining raw materials . 
     Although Thailand rubber production may be reduced, but did not see the tight supply situation. Currently China and Japan rubber inventories are high, and has been increasing recently. Thai rubber output this year will be lower than the rate of expansion or the usual 3% to 5% increase in production in the Northeast or to compensate for the impact caused by the protests. World rubber prices continued downward to the formation of the rubber plantation industry has also hit the sea of plastic Group results for 2013 have fallen sharply, many Hainan Rubber growers have begun to reduce the area planted and harvested, switching to other crops, which is China's rubber industry and development. 
     Second, the rubber prices continued to decline very big blow for traders. For the middle and lower reaches of natural rubber, the rubber when prices fall, the most serious injury is a traditional traders. It is understood that each year one or two months before the Spring Festival is the stocking of domestic tire manufacturers, the demand will be significant warming. So many traditional traders to increase the intensity of imports at the end of 2013, expect to earn at the end of the market in a stocking. But make traders think that at the end of 2013 stocking dismal market anomalies, tire manufacturers for raw materials procurement will fall into the abyss. Qingdao Bonded stocks surged, now reaching record levels, inventory pressure is very great. The current market does not provide individual breach rubber rubber traders phenomena such as this phenomenon continues to spread, rubber supply distribution system is bound to have an impact. 
     Third, low-impact rubber prices stable operation of the downstream products industry. Jiaojia running low, although on the surface of the tire and other rubber products to improve the level of profitability, but because the market price is expected to downstream, upstream and downstream enterprises product prices also showed a downward trend, both reduced the corporate profit margins, but also makes it difficult enterprise stabilize costs, but also affects other raw materials, such as the normal operation of synthetic rubber, carbon black, rubber chemicals and other industries, some sectors even large losses. Such a market, in turn, continue to adversely affect the natural rubber market, so the market is expected to continue to put on rubber prices. 
     Currently the industry has formed a consensus, the price volatility of natural rubber rubber serious damage to the healthy development of the whole industry chain, market stability in order to win. Rubber prices continued downward has caused governments and associations of attention, and take measures to curb the decline in rubber prices. As in 2013, the Thai government approved a budget of 21.249 billion baht center of rubber farmers subsidies; Vietnamese Ministry of Finance to reduce export tariffs of natural rubber and synthetic rubber, from the previous 3% to 5% to 1%; Indonesian rubber farmers and enterprise agreement, based on 2013 production of 3.18 million tons of rubber, the 2014 production will be cut by 10%, hoping to push rubber prices recovered to above $ 3 per kg. The past two years, China Rubber Industry Association has called for the establishment of a stable rubber price system, and actively planning organization established natural rubber tire industry stabilization fund, to suppress volatility of rubber prices.


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