The "natural rubber bubble" that had staged a crazy scene in the fourth quarter of last year finally burst in the first quarter of this year. The latest data released by the China Rubber Industry Association shows that in the first quarter of this year, the beginning of the rubber industry was obviously weaker than that of the previous year, and the level of profitability generally declined. Loss-making enterprises accounted for more than two percent. However, the association predicts that after entering the second quarter, as the prices of raw materials fall, the downward trend in the profitability of the industry will be curbed. The industry believes that the future industry outlook depends on the recovery of the Japanese auto industry. The rubber industry also needs to establish an access mechanism to curb such problems as excess capacity. Industrial chain pressure highlights in the first quarter According to the person in charge of the Rubber Association, the rubber industry was basically stable in the first three months, but the profitability of the industry continued to decline due to the impact of rising raw material costs. Although the export growth rate has declined slightly, it remains relatively high. The Association’s statistics on 392 companies in 11 branches, such as tires, tires, rubber hoses, and rubber products, showed that the current industrial output value was 67.335 billion yuan in the first quarter, up 21% year-on-year; sales revenue was 67.182 billion yuan, an increase of 23% over the same period last year. %; The value of exports was 18.887 billion yuan, an increase of 38% year-on-year. However, in the first quarter, the industry’s profits tax dropped by 12% year-on-year, and its profit decreased by 21% year-on-year. Among them, the profit of tires dropped by 28% year-on-year, the profits of tires for cars dropped by 24% year-on-year, and the profits of carbon blacks dropped by 41% year-on-year. The overall profit margin of the industry was 2.87%, a year-on-year decrease of 1.56 percentage points. Of the 316 key enterprises, 68 suffered losses, 22% suffered losses, and lost a total of 410 million yuan. The major economic indicators such as output value, output, and sales of major companies in 10 industries including tires were all weaker than the previous year. According to the person in charge of the Rubber Association, the reasons for this are the impact of base period data. The main reason is that prices of bulk raw materials such as natural rubber have risen, and companies have been slowed down by the pressure of economic operations. However, the operating trends of various companies in the first quarter have basically stabilized, indicating that the industry has basically stopped the downward trend and entered the second quarter. With the fall in raw material prices, the industry operation will likely show a good trend. Automotive demand determines market outlook “Last year earlier this year, early this year, due to market speculation, rubber prices soared once, which made downstream industries vulnerable. If natural rubber prices reached a high of 43,000 yuan per ton in mid-February, this is obviously for some downstream companies. Can't afford it," said Chen Zhihua, an analyst at China Chemical Industry Network. He told this reporter that the high price of natural rubber led directly to the closure or suspension of production of certain downstream enterprises. With weaker demand, Jiaojia also gradually pulled back. After the earthquake in Japan, global demand weakened and the rubber price fell to the bottom. In mid-March, it fell below 35,000 yuan per ton. Since then, despite rebounds in the natural rubber futures market in early April, spot prices have risen and climbed above 39,000 yuan/ton, but then the central bank raised interest rates several times and raised the deposit reserve ratio, and the Jiaojia price has been pulled back. At present, the rubber price is temporarily in a basically stable state. “At present, there appears to be a slight improvement in the demand for rubber, but there is no large-scale improvement. The market is still dominated by minor fluctuations.†Chen Zhihua said that the factors affecting rubber this year include the availability of production areas, policy controls, and global demand. It is mainly the demand of the Japanese automobile industry. In his view, the third point is particularly critical and will play a decisive role in restoring confidence in the rubber market. In response, Siemens Energy analysts believe that with the opening of the new rubber, natural rubber faced with a situation of increasing supply pressure, which made the market start to show signs of weakness, and it also had a negative impact on the entire synthetic rubber market. At present, the industry is still cautious about the outlook for natural rubber, and the resulting industry-wide adjustment will continue until the middle of the third quarter. Establish access mechanism to solve excess capacity In response to the ups and downs in the rubber industry and the overcapacity in some parts of the rubber industry since last year, the Rubber Association also proposed policy recommendations for establishing access mechanisms. According to the relevant person in charge of the association, an industry access mechanism should be established in the scope of products such as motorcycle tires, carbon black, and rubber shoes, which should be established and implemented by the government and specifically organized by the association. This will limit and eliminate backward production capacity from the policy and prevent low-level repetition. Construction and vicious cheap competition. For products that are included in the industry's entry requirements, local government departments that are not up to the standard should not register, and new projects will not be approved, and investment credit and preferential tax policies will not be enjoyed. “For example, the production capacity of tires for vehicles has been severely oversupplied, and the state should restrict newly-built enterprises and low-level redundant construction from the aspects of land use, environmental protection approvals, and capital credit, and only allow relocation in other places, expansion of technological transformation capacity, and construction of high-end product capacity. In the form of legislation, strict implementation of the industry access system, said the person in charge. For some problems such as tapes that are outdated from the ability to withdraw from production, the Rubber Association also suggested that the state should formulate an exit policy for backward production capacity and establish an outdated production capacity withdrawal mechanism. “Adjusting the structure and eliminating outdated production capacity are important means to achieve energy saving goals in the industry, but eliminating outdated production capacity involves factors such as local economic and social employment, and the country has no corresponding exit mechanism. It is therefore very difficult. Therefore, it is recommended that the country introduce backward production capacity as soon as possible. Exit policy." The above-mentioned person in charge said. The China Petroleum and Chemical Industry Federation proposed to control the total amount of tires, limit the development of biased tires, and further increase the proportion of radial tires in the newly released "Twelve Five" Development Guide for the Petroleum and Chemical Industry. At the same time, continue to increase the production of radial tires and engineering radial tires, especially the production of tireless radial tires, continue to increase the proportion of light-load and domestic-made radial passenger tires, and increase the low-profile and flattened products while increasing serialized products. The ratio of radial tires for large rim high-performance cars. Synthetic rubber is also encouraged by the federation as a substitute for natural rubber. The Federation proposed to accelerate the development of technologies and equipment for the industrialization of butyl rubber (especially halogenated butyl rubber), ethylene propylene rubber and isoprene rubber; and accelerate the development and production of special rubber. 1. Item Name: Hold Down Clip Hold Down Clip, Hold Down Clips, Knife Hold Down Clip, Harvester Blade Clip Ningbo Combine Machinery Co.,Ltd. , https://www.combine-harvester-parts.com
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