Rubber products industry accounts for a large weight in the automotive market

　　Looking at the per capita consumption over the years, the data shows that China is a big consumer of natural rubber products, with an average annual consumption accounting for about 30% of the global consumption; most of the rubber is used in the production of automobile tires. China is a major importer of automobiles. Therefore, the production situation of the rubber products industry deserves attention.

　　The Tire Branch of China Rubber Products Industry Association recently announced the statistics of 46 major tire companies in the first half of the year. From January to June, the profits of the rubber products industry increased significantly by 23.5%. However, the output of rubber products increased by 6.7%, but the sales revenue decreased by 1.6%, the export delivery value decreased by 2.1%, and the inventory increased by 6.8%, which is at a high inventory level. The high inventory of rubber products companies may lead to a further reduction in the demand for upstream raw material rubber, thereby pushing up rubber inventories. The high inventory pressure will cause the price of rubber products to fall all the way. In the first half of the year, natural rubber fell by about 20% year-on-year, and styrene-butadiene rubber and butadiene rubber fell by about 32% and 40%.

　　It is worth mentioning that the decline in rubber prices has made the auto industry "mixed". On the one hand, it is due to the decrease in cost caused by the large decline in the price of natural rubber. In the face of increasing production capacity, as one of the means to control the balance of supply and demand, can purchasing and storage play a role? Therefore, the effect of purchasing and storage on the adjustment of supply and demand is not optimistic. The global natural rubber supply and demand will change from "tight balance" to "slightly loose", and the next three years will be the peak period of natural rubber production. Under the current situation, for China's natural rubber industry, the contradiction between supply and demand of raw materials has eased, and the risk of futures speculation has increased. Both longs and shorts should be more rational to reduce the price amplitude. Manufacturers should pay attention to reducing fluctuations in production volume and processing spreads.

　　About silicone rubber products

　　The production of silicone products is a complex process, and the quality is not only good or bad except for machine and human factors. Intermediate inspections are the key to finding and resolving major product quality issues. Therefore, maintaining the normal operation of the machine, the good working condition of the mold, and strengthening the operation skills and quality awareness training of operators and quality control personnel are the key to reducing production defects and the benefit of the enterprise.

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