Review 2014 rubber tire industry event
1, Oversupply of natural rubber & synthetic rubber
In 2014, natural rubber globally oversupplied the market, with its price continuing to go down to the level of the international financial crisis in 2008. Meanwhile, domestic synthetic rubber’s excess capacity is very significant. The device utilization rate of SBR & BR fell to 53% and 68% respectively, IR even to 15%.
Currently, the price of natural rubber is still in the downstream channel, the momentum is not stabilized. And in the next two years, China will have another million tons of synthetic rubber production capacity. This will seriously affect the rubber production and traders, and affect tire price and market situation.
2. Interim measures for the management of waste tire industry
In accordance with "the comprehensive utilization of waste tire industry access Announcement Interim Measures," , the Ministry of Industry and Information Technology of China (MIIT) will publish the 21 comprehensive utilization of waste tires enterprises list (The first batch) who met the entry requirements & seek the opinions of community & industrial enterprise.
The Measures clearly defined about the comprehensive utilization of waste tires and tire retreading companies how to apply for admission, and how government and industry associations to make publicity and other specific processes. This move is aim to implement the "tire retreading industry access" and "comprehensive utilization of waste tire industry access" , and to regulate the utilization of waste tire industry development, improving the level of comprehensive utilization of waste tire regulations.
December 23, MIIT published list of companies (second batch) who were in line with "tire retreading industry access", "comprehensive utilization of waste tire industry access" .
3. China Rubber Industry Association issued "green tire technical specifications"
February 24, China Rubber Industry Association released the "green tire technical specifications", and given trial in the beginning of March 1. This is the first domestic green tire industry self-discipline standards, specifying the definition of green tires, bring out the requirement of green tire performance & raw material, and recommending green tire production technology, laiding the foundation for China to achieve tire labeling system next step.
Currently, the Rubber Association has set up a "green tires Industry Promotion Committee" and "green tire technology support center", and will certify for tire testing and certification organization, refine raw green tire guide, so as to ultimately achieve the tire labeling system.
4, Rubber testing professional committee set up
March 27, China Rubber Industry Association Professional Committee was established to in Qingdao, Shandong.
According to the analysis, China’s rubber industry is in the larger and stronger of the historic stage. A complete scientific evaluation system, evaluation methods, and evaluation tools has a significant role in promoting the scientific development of rubber industry, which makes rubber inspection and testing techniques and methods equipment attract more attention. In this respect, the establishment of the professional committee has unusual significance.
5, US carry out “Double reverse” for China passenger car and light truck tires
June 3, USW filed and application to the US Department of Commerce and the US International Trade Commission (ITC), for a request to start anti-dumping and countervailing duty investigations for passenger and light truck tires from China. It is acknowledged that this is the biggest trade remedy measure that domestic tire industry has suffered by far.
As the largest country in the global car ownership, American import more than 50% of it’s tires from China, which is also the most important overseas markets for China tire, whose imported tires account for about one-third of China’s exports of imported tires tire total.
6, The ministry of commerce to terminate SBR anti-dumping measures
September 8, the Commerce Department said, since SBR failed to apply for the final review to a domestic industry within the time limit stipulated by the announcement, so it has decided not to initiate a final review of the investigation. From this point, since September 8, 2014, anti-dumping measures on importing of SBR origin in Russia, Japan and South Korea to implement the applicable termination.
SBR is an important raw material for the production of tires. From 2009, China began to impose high tariffs of up to 38% for SBR from these countries, in order to limit importing quantity of SBR, and protect domestic development.
7, China Rubber Industry Association issued "tire industry access condition"
September 17, the Ministry issued a "tire industry access condition", and announced it’s implementation from October 1, 2014. The release of this policy, will play a very important role in the development of the tire industry, industry consolidation and industry standards.
Reportedly, the access conditions made a clear provision for investment in tire production equipment companies, while also encouraging the development of energy-saving, environmental-friendly green tires, and the development of advanced production technology. Insiders said that majority of tire companies can meet the above criteria currently, which will have a good effect on regulating the industry development, eliminating backward production capacity.
8, US impose countervailing duties on China tires maybe more than 80%
Local time on November 24, the US Department of Commerce preliminary ruling found that importing from China passenger car and light truck tires existed receiving extra government subsidies phenomenon. So the US intends to impose "countervailing duties", involving an amount high up to $ 3,000,000,000 or more. According to preliminary results released by the US Commerce Department, Chinese tire companies will be charged for 17.7% ~ 81.3%, ranging from punitive tariffs.
Earlier in 2009, from the tires safeguard, the US imposed 35%, 30%, 25% duties for China passenger car and light truck tires respectively in 3 years. Statistics show that during the special protective case, the amount of China’s tire exports to the US declined by more than 60 percent. It is predicted that the duration of the "double reverse" case is longer than the tire safeguard, maybe reach 60 percent tariff.
9, GB Commission issued "compound rubber general technical specifications"
December 31, the State Administration of Quality Supervision, Standardization Administration of China in 2014 Notice No. 33 announcement, officially released compound rubber national recommended standards "composite rubber General technical specifications", the standard number of GB / T 31357-2014. The standard requires that the raw rubber content of compound rubber no more than 88% (by mass), 12% of non-rubber mixture.
It is reported that this caused attentions of rubber producing countries in Southeast Asia and the domestic industry’s attention. Thai Rubber Association submitting an official letter to the Thai government. The industry insiders also believes that the raw rubber content set at 88% or less, is to close the door for importing of compound rubber, so there is likely to cause confusion in the market of natural rubber trade.
10,Raised tariffs on importing of natural rubber in 2015
December 16, the Finance Ministry of China said that since January 1, 2015, it will make some adjustments for importing & exporting tariffs, including an appropriate increase in the level of provisional import tax rate of natural rubber and other commodities.
According to the regulations, China’s natural rubber importing tariff temporary rate from 20% or 1200 yuan / ton, adjusted to 20%, or 1,500 yuan / ton, an increase of 300 yuan / ton; imported natural latex temporary tax rate by 10 percent or 720 yuan / ton adjusted to 10% or 900 yuan / ton, an increase of 180 yuan / ton.
In addition, since January 1, 2015, "2015 tariff implementation plan" began, synthetic rubber importing tariffs were made some adjustments.