Is this the last straw for the tire company?
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Recently, domestic rubber prices have continued to rise, which has affected downstream tires, footwear and other industries. 
This is even worse for the Chinese tire industry, which is not optimistic.
According to analysis, natural rubber prices continue to rise, mainly due to internal and external factors.
The external factor is that the world’s three largest rubber producing countries—Indonesia, Malaysia, and Thailand—have begun to limit the export volume of natural rubber.
The internal factor is that in February this year, China officially implemented the new standard for imported composite rubber, that is, in the composite rubber, the content of natural rubber should not exceed 88%.
Prior to this, in the composite rubber, the natural rubber content requirement was not less than 95%. This glue is less difficult to produce and the process is mature.
According to the new standard, the content of natural rubber in composite rubber is greatly reduced, and the mixing process is not mature enough, resulting in a very unstable formulation during production.
Downstream industries affected by this include tires, shoes, wires and cables.
For the shoemaking industry, many factories have moved to Southeast Asia, close to the raw material production area, and have a cost advantage.
But the tire industry is not the same. Its largest overseas market is the United States, which is currently anti-dumping on Chinese tires.
Large-scale tire companies have abundant funds and strong capabilities, and they can choose to build factories overseas. For most SMEs, this is unimaginable.
According to the latest data released by the General Administration of Customs, in January this year, domestic imports of synthetic rubber increased by 74.8% year-on-year.
In the context of the downturn in the industry, rubber imports have increased significantly. Analysis of the industry, this is actually the company's panic mood in the fermentation.
At the same time, it can be foreseen that the reshuffle in the downstream tire industry has entered the white-hot stage, and “de-capacity†has also become a staple.
The profits are good, but the market is shrinking, which makes natural rubber suppliers have no choice. For them, this feast is more like the last supper.
As a result, some people hope to upgrade their synthetic rubber technology. Some people even think that this is the last straw for the tire company.
Recently, in the rubber plant of Qilu Petrochemical Company, located in Zibo, Shandong Province, China's first synthetic rubber R&D organization and Sinopec are building the first rubber R&D center in China.
The R&D center complex has now been completed and the pilot plant has entered the equipment installation phase and is expected to be completed by June this year.
But the problem has also come: First, far from hydrolyzing near thirsty; Second, the development of synthetic rubber, will be able to solve the tire companies now face the problem?
Therefore, this sounds more like a false proposition.
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