Taizhou Rubber Company's Profit Space Shrinks

According to the latest customs statistics, the export volume of rubber products in Taizhou from January to November last year was US$148 million, a year-on-year increase of 99.6%. Despite the rapid growth, the profit margin of rubber companies has shrunk.

Industry sources pointed out that the lack of domestic resources and excessive dependence on imports are the main reasons for this phenomenon. According to the plan of the Ministry of Agriculture, by 2010, China's total output of natural rubber is only 750,000 tons, and the self-sufficiency rate of domestic natural rubber is less than 1/3. The excessive dependence of natural rubber on imports will be hampered by the number and price of resources.

Second, the price of natural rubber is subject to fluctuations due to various factors. Such fluctuations are often unpredictable. In addition, there is a long time lag between the import of natural rubber and the export of rubber products, which virtually increases the company’s operating risk. The prices of accessories such as petroleum by-products, which account for a relatively large cost in the production of rubber products, have soared. The increase in labor prices also increases the production costs of enterprises.

In addition, the continuous appreciation of the renminbi also weakens the price competitive advantage of China's rubber products in the international market to some extent.

In this regard, the Customs suggested that the city's rubber companies should increase the proportion of synthetic rubber applications, optimize product structure, and enhance the ability to avoid fluctuations in raw material prices, RMB appreciation.

It is understood that in the tire manufacturing industry with the largest amount of glue consumed, the United States uses 54.4% of synthetic rubber, 50.7% in France, and only 40% in China. Therefore, the application of synthetic rubber in China's rubber products, there is much room for development.