Since September 2010, natural rubber prices have continued to rise.

The data shows that the price of Shanghai Rubber Futures has exceeded 30,000 yuan / ton, the highest in recent days has been close to 32,000 yuan / ton price increases of up to 20%, after the National Day holiday, rubber has become the leading product of bulk products.

For tire manufacturers, the main costs are labor costs, raw materials, depreciation of fixed assets and utilities, of which raw materials are mainly natural rubber, synthetic rubber, nylon cord fabric, steel wire and carbon black. Rubber costs account for approximately 50% of the total tire production cost.

Therefore, the price of rubber is one of the most sensitive aspects of the tire manufacturing company and directly determines the profitability of the company. The price of natural rubber soars, and the most distressing days of the day are probably tire companies that use natural rubber as their main raw material.

Why is the price of natural rubber skyrocketing?

According to statistics, as of October 9, 2010, the natural rubber (private sector) in Hainan Province has been completely shut down, with a cumulative reduction of more than 10,000 tons, and a total reduction of over 10,000 tons of dried rubber. And Hainan's natural rubber accounts for 47% of the country's total output. The reduction in production will have a serious impact on the national supply.

Some analysts pointed out that the drought in Yunnan and the heavy rain in Hainan at the beginning of the year have affected China's two major natural rubber producing areas. This is an important factor in the shortage of domestic natural rubber in 2010. During the National Day, the heavy rains in Hainan Province were severely damaged. As a major natural rubber producing area in China, after such a severe natural disaster, it will also significantly reduce production.

At the same time, the market demand for tires continues to grow.

China Association of Automobile Manufacturers released the latest statistics on automobile production and sales in September: In September 2010, domestic auto production and sales exceeded 1.5 million. From January to September, the production and sales of automobiles reached 13,087,700 cars and 13,138,400 cars, an increase of 36.10% and 35.97% year-on-year, basically reaching the level of production and sales for the whole year of 2009. It is expected to reach 17 million vehicles in 2010, which means that China's new car sales will reach The highest level in the history of the United States has become the world's largest new car market.

In addition, the promulgation and implementation of the “Tire Industry Policy” of the Ministry of Industry and Information Technology has also played a role in fueling the rise in Hujiao's price.

Some analysts believe that this policy will benefit the tire industry, and will drive the entire industry chain. The rubber in the upper reaches of tires will thus benefit greatly.

Cai Weimin, secretary general of the China Rubber Industry Association’s tire division, said that the reason why natural rubber hit record highs is that there are currently rising prices for raw material resources; rubber demand has risen sharply; exporters that produce natural rubber have limited exports; climate impacts have led to local production cuts; Futures market funds speculation.

FAW Series Diesel Generator Set

FAW Series Diesel Generator Set,Diesel Generators with FAW Engine,FAW Diesel Generator

Bison Machinery Co., Ltd. , http://www.tzengine.com