In recent years, the rubber market has shown two major development trends. Today, we will briefly introduce these two trends for you, and hope to provide you with more understanding.

First, the price of rubber raw materials fluctuates greatly, and the cost of enterprises is difficult to control.

In 2011, the prices of raw materials such as rubber fluctuated greatly. Natural rubber hit a record high of 43,500 yuan/ton in the first quarter. Synthetic rubber rose in the second and third quarters, with an increase of 10,000 yuan/ton. Affected by the violent fluctuation of rubber prices, major rubber products companies such as tires bear the brunt, production and operation costs are difficult to control, inventory risks increase, profit margins are reduced to 2%-5%, and the industry faces severe challenges.


Second, the industry's growth rate has rationally declined, and it has entered a benign development track.

Due to the large fluctuations in the prices of rubber raw materials, the domestic and international markets continued to slump, and domestic demand slowed down. The growth rate of China's major rubber products declined and exports fell, but there was no ups and downs and the overall economic operation remained stable. At the same time, the operation quality has been optimized: the product structure adjustment has progressed, the tire meridization rate has reached 86.5%, an increase of 2.5% year-on-year, and other product structures have also been greatly improved; the transformation of the rubber industry growth mode has achieved initial results, and the tires have relied on external demand. The degree of reduction is low; the effect of implementing low-carbon economy is remarkable, the energy consumption of the industry is reduced, and a number of energy-saving equipments, green tires and other products and green raw materials are emerging. These changes show that when the economic growth rate is moderately reduced, it will help to adjust the structure and promote various reforms. The economic operation of China's rubber industry has begun to enter a benign development track.