Eliminate Backward Natural Rubber Production Capacity And Create Development Opportunities For High-end Products

- Nov 07, 2020-

During this period of time, the price of natural rubber rose to 16,000 yuan per degree, an increase of nearly 40%. The main reason for this round of price increase was the impact of the epidemic and the tight supply and demand in the international rubber market. Since 2014, the price of natural rubber has continued to be sluggish, while the prices of labor and means of production have continued to rise, and the comparative benefits of rubber planting have continued to decline. Since the beginning of this year, the economic indicators of my country's rubber industry have dropped significantly compared to the same period last year.

Xie Shuigui, deputy director and researcher of the Rubber Institute of the Chinese Academy of Tropical Agricultural Sciences, said: The early increase in rubber prices was mainly affected by weather and epidemic factors. The weather has shortened the opening period in major rubber producing areas such as Southeast Asia, and the annual supply of raw materials is tight. At the same time, due to the epidemic, the global demand for medical gloves has maintained a high level throughout the year, stimulating market demand for liquid latex. In addition, from the perspective of market demand, the recovery of domestic and foreign automobile and tire consumption has accelerated, and domestic rubber consumption is booming.

His analysis: The price of natural rubber changes cyclically. As the relationship between supply and demand tightens, the price has increased to a certain extent. The domestic rubber tapping season generally lasts until November, and rubber production will decline significantly after December. Therefore, from an overall point of view this year, natural rubber production is difficult to reach the supply level of previous years, which is also the reason for the recent increase in rubber prices. As a commodity, natural rubber has strong financial attributes. Affected by the Fed's cut in the benchmark interest rate in March this year, some hot money flows from the bond market into the stock market and futures market, pushing up rubber prices.

my country's natural rubber production areas are mainly concentrated in Hainan, Yunnan and Guangdong. As of the end of 2019, Hainan's rubber planting area was 7.92 million mu, with an output of 360,000 tons. Private rubber area accounted for 55%, and Danzhou, Baisha, Qiongzhong, Tunchang and Chengmai planted areas accounted for 56.43%. Private rubber plantations involve about 420,000 farmers, covering a population of about 2.17 million, and rubber production in the reclamation area covers about 42,000 households.

Xie Yonggui said, “Accelerate the elimination of outdated natural rubber primary processing capacity, reformulate the environmental protection standards for natural rubber processing, increase the integration of private primary processing plants, and realize a large-scale, standardized, and green processing system to strengthen primary natural rubber products. Regional brand building."

For Hainan Province, the elimination of outdated production capacity in the initial processing of natural rubber and the development of the high-end rubber products industry may bring opportunities for "overtaking in corners". Xie Shuigui said that in the context of the construction of a free trade port, Hainan can learn from Singapore’s successful experience in natural rubber trade, use the largest consumption base in China’s Shandong and other provinces, and be close to the world’s largest production base in Southeast Asia to optimize shipping and port services. , Warehousing, finance, technology and other services, deeply participate in the global natural rubber trade.