Important raw materials for tires: rubber additives market is difficult to a goods
“Give some goods, give some goods, 1 tons we also pull away.”
“The original tire companies are the boss, additives companies are ‘bullied’. Now it’s different, as long as the additives have quotes, tire companies directly back to the ‘OK, there are goods on the line!”
“You’ve seen a handful of tire companies to additives factory personally looking for goods? Previously, we see the tire factory purchasing director are difficult ah. Now they a hand to come, but also must wait in line for goods, there is really no inventory ……”
October 27, China Chemical Industry News reporter and rubber additives enterprises, tire companies to communicate, from their words can be felt in the current market atmosphere of tension.
“Innovation is the first driving force for the development of the industry; to ensure the supply of the international and domestic markets is the industry’s current first priority, and must be highly valued.” Xu Chunhua, Honorary Chairman of the Rubber Additives Professional Committee of the China Rubber Industry Association, took innovation and supply assurance as the opening topics at the 17th National Rubber Industry New Material Technology Forum and 2017 Rubber Additives Professional Committee Members’ General Meeting held on the same day, which also shows the seriousness of the situation.
Downstream users grabbing goods around
A number of business leaders reflected to the reporter, at the beginning of this year, rubber chemicals short single prices rose slightly, after the long contract price to follow up; May to June, the supply began to tight, the product market price all the way up; 8 to September the supply is more tense, cash withdrawals, queuing up for the goods, there is no long term contract around the phenomenon of begging for the goods and not allowed to gradually spread, tire companies, tube and belt companies and other downstream users have joined the grabbing of goods stocking up! The ranks of rubber chemicals. Reporters in September during the RubberTech exhibition, has been wondering why repeatedly invited additives companies to arrange interviews are due to tire business owners to visit and failed, this time finally clear.
The company responsible for chatting with reporters, have not left the “guarantee supply” and “raw material tension” topic. Because of safety and environmental issues, many basic chemical raw materials enterprises were forced to stop production, production restrictions. Affected by this, the main raw material for rubber chemicals aniline prices rose 50% in the last two and a half months; the first quarter to now, the price of dicyclohexylamine doubled, carbon disulfide has also risen 40%.
“Who wants to unload at night ah, but now there are goods have to hurry to unload, buy material difficult ah!”
“The last few days just a little, the first few months of raw materials is really tense.”
At the time of lunch, everyone is still lamenting.
Production decline is rare in a decade
“The decline in production is not seen for more than a decade.” China Rubber Association Rubber Additives Specialized Committee Chairman Wang Chuanhua said.
According to the statistics of China Rubber Association Rubber Auxiliary Specialized Committee, in 2017, the total cumulative output of member enterprises from January to August was 811,000 tons, a year-on-year decline of 2.1%. Among them, the output of accelerators is about 279,000 tons, and the output of antioxidants is about 262,000 tons, down 10.9% and 14.4% year-on-year, respectively. Member enterprises from January to August sales revenue of 13.5 billion yuan, an increase of 0.5%; exports of 230,000 tons, down 3.8%. Public price data show that rubber accelerators have increased prices by more than 50% during the year, and antioxidant prices have risen by more than 30%.
“Supply is tight, prices should rise, sales revenue year-on-year from decline to rise. The good thing is that other rubber chemicals production has new growth, to a certain extent, alleviate the tight supply situation, the overall completion of the task of ‘stabilizing supply’. In the fourth quarter of this year, if there is no persistent severe haze weather, Shandong, Tianjin and other enterprises in North China can guarantee normal production, the total output of rubber chemicals in 2017 will be more than 1.2 million tons, and the target of 5% production growth can be expected. According to the tire industry’s expected output growth of 4%, it is still possible to maintain a stable supply during the year.” Chairman Wang Chuanhua gave such a judgment.
“Downstream enterprises such as tires and tubes and belts that have long-term strategic cooperation now have normal supply, though downstream small enterprises can no longer be guaranteed. The association hasn’t heard any complaints or requests for help from large enterprises yet, though some downstream enterprises have already started to stock up on auxiliaries, and the market supply is becoming tighter.” CRRA Rubber Auxiliary Specialized Committee Secretary General Gao Bo told reporters.
Raise the amount of supply without delay
“China’s rubber chemicals accounted for 75% of the world’s production, now additives business is basically zero inventory, domestic and foreign big tire factory are trying to run to the goods. If the supply is cut off, it will cause a chain reaction. By then it is not only the enterprise’s problem, but also the problem of the whole industry. Under special circumstances, we must find ways to ensure that there is a certain amount of inventory to ensure the supply of rubber chemicals industry chain!” Xu Chunhua said, “To ensure or even enhance production capacity, the most fundamental thing is to improve the process and keep a close eye on clean production. The industry has been promoting cleaner production for more than a decade, before not being crushed under the heavy pressure of environmental protection. Nineteen proposed to build a beautiful China, the chemical industry should be responsible for the green chemical industry, the beautiful chemical industry for the eternal pursuit. Rubber additives have long been to the world, but if you do not continue to innovate, it is difficult for enterprises to operate for a long time. Auxiliaries, especially accelerators must find gaps in terms of process, equipment, testing, especially online monitoring, and improve as soon as possible.”
“To survive, develop and become stronger, we must innovate, innovate and innovate again. The first major work of the ad hoc committee this year, is to vigorously guide the auxiliary industry to a higher level of environmental protection, the original capacity must realize the ‘three wastes’ standard discharge. Leading backbone enterprises continue to strengthen environmental protection innovation, improve enterprise health and sustainable development capabilities, seize the opportunity to expand production capacity at the right time, stronger and larger enterprises, to improve the industry’s overall ‘stable supply’ ability.”
