The "survival" way of the tire industry

Since 2006, the price of natural rubber has risen again and again. Although there has been a drop in the price during the period, it has still been on the rise. In particular, since the second half of 2010, it has also risen to sky-high prices.

On January 19, 2011, the contract price of natural rubber on the Shanghai Futures Exchange was reported at 39,920 yuan/ton, which again set a new record high and exceeded the 40,000 yuan mark.

In an interview with a reporter from the China Sankei Shimbun, Chang Chih-chih, a researcher in the chemical industry of China Investment Advisors, pointed out that since the beginning of last year, the rise in the prices of natural rubber has been closely related to the speculation of funds, and the shortage of natural rubber production is difficult to alleviate in the short term. This makes natural rubber prices appear easy to rise or fall. "It is expected that the increase in natural rubber production will be less than the increase in demand in the later period, and the current liquidity funds will increase, and natural rubber prices will continue to remain high."

On February 24, the National Development and Reform Commission disclosed on its official website that since October 2010, due to the rapid increase in the price of natural rubber, the cost of tires has risen sharply, and a considerable number of tire companies in China have fallen into losses. Excessive rubber prices will continue to affect the healthy development of China's tire industry.

To cope with the current rising price of natural rubber, Chang Yuzhi pointed out that China needs to take measures to regulate the tire industry's market competition order; at the same time, related tire companies must also optimize the tire production formula and adjust the proportion of tire production to reduce The use of natural rubber; In addition, in the development of alternative products of natural rubber, China must also increase its efforts to promote.

Sun Shengyi, the first futures analyst, said in an interview with a reporter from the "China Sankei Shimbun": "To eliminate the high price of today's natural rubber, first, we must increase the price of tires, reduce costs, in the price and consumer affordability. Balances with the national consumer system; Second, the reduction of tariffs, increase the national rubber reserves, timely 'release' to deal with the imbalance between the supply and demand of natural rubber, the price adjustment.

Tire direct price increases, lower costs, reduced import tariffs, and “release” of the State Reserve rubber are all countermeasures to deal with the “high price” of natural rubber. These seem to be temporary and can achieve better results in the short term. Effectiveness, but the power of these methods seems to be a bit weak for a three-month rolling rubber price, or it can only be implemented as an emergency measure.

In fact, as early as the fourth quarter of 2010, the China Rubber Industry Association, in order to ease the pressure on production costs of tire companies, has on behalf of the tire companies twice to request "support" from the relevant state departments, hoping that the country will put into the market as soon as possible the State Reserve Plastics, and at the same time cancel as soon as possible Natural rubber import tariffs, however, did not get a reply.

In response, Chang Jizhi analyzed: “From the current price of natural rubber and China's 'release' of the State Reserve rubber, the reduction of import tariffs and the 'release' of the State Reserve rubber has a limited role in relieving pressure on tire production costs. ."

Chang Zhizhi pointed out that from the perspective of long-term development, China's tire industry needs to increase industrial restructuring efforts to increase the concentration of the domestic tire industry; and related companies also need to increase the adjustment of product structure and improve the level of tire production technology. To enrich the types of domestic tires; at the same time, relevant departments must also strictly enforce the tire industry access system, and promote the formation of a fair and reasonable market competition order.

In addition, "the state should provide funding and policy support for the research and development of related technologies for some enterprises, and at the same time, increase the research and development of alternatives, so that China's tire manufacturing gradually from intensive type to intensive type." Sun Shengxi said.