Why China's natural rubber has been "controlled by people"

In 2012, a merger and acquisition of Sailing shares attracted the attention of some people in the Chinese tire industry.

In May 2012, the racer spent 32 million yuan to acquire a 51% stake in Thailand's Taihua Loyong rubber processing plant.

The reason why this round of mergers and acquisitions of the Race Wheels caused concern is that the Chinese tire industry has always been “controlled by people” in terms of natural rubber . The Race Wheel intervened in the upstream raw material supply chain through this move, thereby obtaining a relatively stable source of raw materials.

Relevant data show that nearly 80% of the natural rubber required by the Chinese tire industry needs to be imported. In the past two years, the prices of raw materials for natural rubber have been ups and downs, and domestic tire companies have suffered a lot. Recently, the three major rubber-producing countries in Southeast Asia have decided to take measures such as tree cutting to raise rubber prices. It is clear that the Chinese tire industry will face even greater challenges in terms of natural rubber in the future.

Since the acquisition of foreign rubber plants can increase their right to speak in terms of raw materials, why do other domestic tire companies have not acted?

An industry insider said that companies can only purchase rubber plants overseas if they can only achieve a certain amount of glue. At present, the concentration of China's tire industry is very low, and the scale of companies is limited. Most of them lack such strength.

Persons with exquisite tires told the editor that only a few tire companies in China have their own rubber factories abroad. For such enterprises, the price of natural rubber abroad is no matter how "noisy", they are not affected.

"But there are not many Chinese tire manufacturers that have rubber factories abroad," he said.

“The state has always encouraged foreign investment. It should not be a matter of policy restrictions.” According to Zeng Zhiling, director of automotive marketing at LMCautomotive Asia Pacific, the strength of domestic tire companies is weak.

Zeng Zhiling analyzed that most of the larger tire companies in China started with heavy-duty tires and have weaker strengths. Naturally, they cannot easily acquire overseas companies just like foreign tire giants. In particular, rubber prices fluctuate greatly, and many uncertainties are affected, and the operation is very complicated. “It is not the Chinese tire companies that can control.”

"Perhaps it is not as good as merging a foreign rubber factory to build a tire factory locally," said Song Guangzhi, director of the Zhuo Chuang Information Rubber Research Institute.

An analyst at Guantong Futures put forward another possibility: The tire industry has higher profits, and the concentration of rubber products is relatively high. “Maybe foreign rubber companies are not willing to be acquired.”

There is no possibility of acquiring an overseas rubber plant, and there is no better way to control the raw material market. Perhaps, the natural rubber demand of Chinese tire companies has long been “controlled by others”.

Pure Molybdenum

Pure Molybdenum Plate,Pure Molybdenum Sheet,Molybdenum Plate

Chromium Zirconium Copper Alloy Co., Ltd. , http://www.nscopperalloy.com