According to statistics, China's rubber planting area reached 17.10 million mu and the annual output was 864,800 tons. However, it still could not get rid of the situation where natural rubber depends heavily on imports. The rubber industry still has 80% dependence on imports. According to customs statistics, from January to October 2014, China imported 2,107,700 tons of natural rubber, an increase of 13.47% over the same period of last year. There are reports even bluntly that domestic companies are more inclined to use imported rubber.
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Insufficient production is the crux
“This is not a simple tendency issue. The fact is that China’s natural rubber production is insufficient and it cannot meet the needs of tires and non-tire companies at the same time. Companies must rely on imported rubber to meet production needs, which creates the illusion that Domestic companies prefer imported rubber.†Xu Wenying, vice president and secretary general of the China Rubber Industry Association, told the International Business Daily.
Xu Wenying said that in recent years, an average of more than 4 million tons of plastics has been put into production in China every year, but only over 800,000 tons are produced each year in the country. “In addition, 80% of China’s total rubber is used in tire companies each year, and the remaining 20% ​​are used in non-tire enterprises. But the standard rubber used in domestic tire factories is No. 20, while the majority of domestic production is No. 5. Standard glue, of course, does not meet the needs of this huge group of tire manufacturers, so they can only rely on imports.†Xu Wenying added.
Bai Ming, deputy director and researcher of the International Market Research Department of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, told the International Business Daily that the rubber output in Malaysia and other Southeast Asian countries is relatively stable and the varieties are relatively high, enjoying a high reputation in the world. It is a recognized fact. The development stage of China's auto industry has also led to the import dependence of the rubber industry to some extent. "China's auto industry has only developed in recent years, and the growth of rubber trees takes a long time. After the growth and maturity of trees, China is in a period of economic regulation. The auto industry has also experienced a period of rapid development, and the development focus has shifted from the number of people. In terms of quality, it will inevitably require higher quality rubber. At this point, imported rubber is competitive," said Bai Ming.
It is difficult to upgrade and upgrade
“While domestic tire companies are demanding No. 20 rubber, many natural rubber companies are not willing to transition to production. This is true for some companies in Hainan.†Xu Wenying pointed out the problem.
Since 1954, it has been identified as a strategic material - rubber planting base so far, Hainan Rubber has 810 million mu of planting area and an annual output capacity of 420,000 tons. Each year, half of China's rubber is produced from Hainan. “This aspect is due to the limited production of natural rubber in China, and on the other hand, because these companies still have a market for No. 5 rubber. Therefore, companies think that they do not need to make changes and there is no incentive for transformation. Xu Wenying said.
Xu Wenying said that the status quo of China's rubber industry is dominated by state-owned enterprises, there are many private entrepreneurs but the output is small, and some private enterprises also have some problems in the introduction of funds. Bai Ming also stated that there are technical vacancies in private enterprises, so many of them only stay on rubber purchases; in terms of deep processing, state-owned enterprises have advantages in both capital and technology.
In addition, Bai Ming pointed out that with the development of the rubber industry, more and more private enterprises will see opportunities among them. “The competition between private enterprises and state-owned enterprises is likely to intensify. How can the state-owned enterprises and private enterprises give full play to their respective advantages? , not letting the market fall into chaos is also a question to be considered in the future."