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CRI Report Analysis On Current Status And Development Trend Of Synthetic Rubber Industry

(CRI-Report) - At present, synthetic rubber industry has already become a national pillar industry with output volume exceeding one million tons. So far, China is not only one of the most active rubber markets in the world but also a large synthetic rubber producer that influences global economic pattern.

According to related data, since 2008, China's production capacity and output volume of synthetic rubber have ranked the second and the consumption volume and import volume even have ranked the first in the world.
According to CRI's 'China's Synthetic Rubber Industry Research, 2013-2017', in recent years, China's whole level of synthetic rubber industry improved obviously and the industrial concentration rate and production capacity improved as well. Meanwhile, China synthetic rubber industry will be confronted with greater challenges.

Firstly, problem concerning the surplus production capacity of synthetic rubber is becoming increasingly serious in China. The domestic production capacity of synthetic rubber has already far exceeding the actual market demand and the total supply has outnumbered the actual demand.
According to CRI's 'China's Synthetic Rubber Industry Research, 2013-2017', from the 11th five-year plan, the plant capacity of domestic synthetic rubber industry keep increasing while the growth rate of output volume is obviously lower than that of the production capacity. As a result, the production capacity of synthetic rubber will be increasingly surplus.
Secondly, there are still many problems in improving the industrial level and technologies of China synthetic rubber industry. Compared with foreign countries, there are many production equipments of low-end products in China and the homogeneity of the products is serious. Meanwhile, because synthetic rubber products with special high-performance are rather insufficient in China, some of them totally depend on import.
Meanwhile, the industry competition is more vigorous. After China joined the WTO, the domestic market is further opened up. As a result, many manufactures from neighboring countries like Russia, Korea and Japan constantly swarmed into China market. Besides, the management standards and marketing methods of foreign manufactures are more scientific and mature, so their competitions with domestic manufactures will be more vigorous.

It is predicted that the consumption volume of synthetic rubber in 2013 will be slightly larger than that in 2012.However, the production capacity of synthetic rubber keeps increasing and the production capacity will be more surplus. As a result, there will be fierce competitions concerning quality, price and after services in synthetic rubber market. Synthetic rubber manufacturing enterprises should be fully prepared with extreme caution, and then they can survive and succeed in the fierce competitions.