According to China Drying Network News, “SBR market has hit new record lows during the second half of the year, and the cost upside down has reached more than RMB 1,000 per ton. Compared with the hot market last year, the price fell to more than 10,000 yuan per ton and the cost has been reversed since September. Slightly improved, but the price has been hovering at low levels.†Director Zhu of PetroChina Northeast Sales Company gave such analysis to the styrene-butadiene rubber market. “The downturn in tires and other industries is the main reason that causes the current market to fall into a quagmire. At present, unless there is special interest, the butadiene benzene market is unlikely to have a big improvement due to the weak demand and high inventory levels. "Wang, Manager of Shuntong Tire Company in Jilin Province expressed the same opinion. Manager Wang said that the profit space of tires has been continuously squeezed, sales of products have been hindered, and the survival of enterprises has been difficult. Coupled with tight funding and rising labor costs, the operating rate of tire production lines has continued to decline, and the five-six-year achievement has been maintained well throughout the year. The company once fell into the dilemma of more losses in production. At present, the tire industry is in poor condition, especially for SMEs. From an international point of view, the haze of the European debt crisis lingered, the lacklustre growth of major advanced economies, various forms of trade protectionism, coupled with the priority of political interests in the election year, increased the arduous global economic growth in 2012. Sex, complexity and uncertainty. From the domestic perspective, there are also many uncertain factors affecting the stable growth of the economy. The industry faces multiple pressures such as slowing market growth, overcapacity, a noticeable slowdown in export growth, and tight corporate funding. The latest data shows that following the further slowdown in the growth rate of the tire industry last year, the growth rate of China's rubber industry has dropped below 10%, while the growth rate in the past was between 20% and 30%. The main reason is overcapacity. China's tire production accounts for only 1/3 of the world's total production, but the number of companies exceeds 1/2. At present, the production enterprises have a severe shortage of operating rates and unprecedented sales pressure. "The three-year US-China Tire Special Safeguards expired and it is a boon to China's tire exports. Prior to this, tire exports to the United States basically stagnated. Exports to the US fell to 31 million and 27.3 million in 2010 and 2011, respectively. Up to 35% of the punitive tariffs have devoured the interests of manufacturers,†said Zhang Li, manager of Tianyuan Tire Trading Company in Jilin Province. The reporter’s understanding of Shandong, Xiamen and other tire companies confirms this statement. With the advent of tire inflation, some companies are increasing their productivity and are trying to regain lost market share. However, this positive effect has not yet emerged. Another bad news came: The EU will implement the labeling method starting in November. It requires all member states to unify the tire label, which must indicate three values: rolling resistance, wetland grip and External rolling noise. “Thirty-six percent of tires produced in China fail to meet the first phase of the EU Tire Labeling Act, and 50% fail to meet the second phase of the EU Tire Labeling Act. Tire exports are therefore difficult.†Manager Zhang is full of worries. 70% of styrene butadiene rubber is used to produce tires. The tire industry dominates the market trend of styrene butadiene, and in the short term it seems that tire production is unlikely to improve, thus weakening the upward momentum of the styrene-butadiene rubber market. At the same time, the lack of support for raw materials is also an important reason for the weakening of the styrene-butadiene rubber market. Following last week's Panjin Ethylene's butadiene price dropped by 700 yuan per ton to 15,510 yuan, the butadiene market has continued its gloomy trend. With the constant release of low-priced goods, the downstream has taken a wait-and-see attitude to avoid market risks, and has greatly discounted the enthusiasm of entering the market. Traders are also worried about the market outlook. The market outlook may continue to be weak. Styrene in the National Day after ushered in a round of small upswing, the price quickly pulled back, the downstream EPS production companies suffered large losses, have suspended purchases, and even temporarily shut down individual factories in Jiangsu to cope with high cost pressures. From the mid-to-long term perspective, the demand side will dominate and prices will show a downward trend. The OECD of the Organisation for Economic Co-operation and Development forecasts that China's GDP will increase by 8.5% next year. At present, the automotive industry is in a sluggish state. In particular, due to Japanese car drag in September, domestic automobile production and sales decreased by 1.8% year-on-year, which also put pressure on the SBR market. The China Association of Automobile Manufacturers predicts that the increase in China's auto sales next year is likely to hit its lowest level in 13 years. As the car's upstream, the tire industry is hard to spare, in this process, the survival of the fittest, Ebb Tide will become inevitable. In short, the styrene-butadiene rubber market is difficult to make great achievements under the combined effects of many negative factors. However, the cost side will limit the rate of decline. If there is no special interest, it will continue to consolidate and it is difficult to achieve a breakthrough in the short term. Home Appliances Injection Molding Parts With many years of industry production experience, we can process and order according to drawings and samples, source manufacturers, quality assurance, complete specifications, high-quality after-sales service, modern complete sets of production equipment and superb workforce, with an annual production capacity of nearly 1,000 tons. 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