SUNNYJOINT Chemicals make you have a comprehensive understanding of rubber additives.

- Oct 10, 2018-

Today SUNNYJOINT Chemicals would like to talk about the rubber additives. 

In January 2018, China imported 697,000 tons of natural and synthetic rubber (including latex), an increase of 36.7% over the same period last year (11.8%). However, the import volume was reduced by 17% compared with December last year. In February 2018, China imported 378,000 tons of natural and compositional rubber (including latex), down 32.5% and 45.8% year on year. In the first two months of this year, 1 million 75 thousand tons of gum and rubber latex were imported, a slight increase of 0.7% over the same period last year. Although February's imports fell significantly from the same period in the same period, the total imports in the first two months of the year were essentially the same as those in the same period last year, thanks to the significant expansion of January's imports (36.7% year-on-year). In the first quarter, Thailand, Indonesia and Malaysia implemented the policy of limiting production. Although they did not reach the target, the export volume declined. Production restrictions are usually short-term government actions, because they restrict factory exports rather than cut production value, and subsequently may exacerbate the contradiction between supply and demand. At the end of March, the export restraint policy of Southeast Asia will expire. 

In the traditional peak season of "golden three silver four", China's highway logistics freight index has dropped significantly. Low freight rate will affect the downstream car purchase and supporting demand, and heavy truck shopping mall is one of the most important factors affecting Tianjiao demand. We are concerned about the recent price increase by turns in a number of tire factories. According to the reasons given by most tire factories, the main reason is that the prices of accessories have risen sharply, especially rubber additives and carbon black. Tire demand is sluggish, and the price of accessories continues to rise, making the tire factory profitable. In the case of tight cash flow in most tire factories, out of the psychology of buying up and not buying down, tire factories are more willing to hoard accessories, the enthusiasm for Tianjiao stock is not high, so short-term domestic inventory is difficult to digest, Shanghai Jiao is still difficult to get out of the quagmire. 

There is no supply-side change in rubber, although the main producers have said that they have exceeded 350,000 tons of export restrictions, but restrictions on exports are not equal to restrictions, rubber production this year is still in the cycle of increase, this year more of the ANRPC member countries than last year continued to improve the cutting area, supply pressure is difficult to ease. Weak rubber demand is not conducive to inventory depletion: 1) This year's shopping malls generally believe that it is difficult to sustain high-speed growth in heavy truck sales, March's high sales or just fleeting; 2) Logistics vehicles in the environmental protection and "super" after cutting the demand for tire matching and replacement; 3) real estate, infrastructure financing difficulties, constraints the start of construction, Negative tire replacement needs.