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According to Bloomberg News, an executive from Japan’s Gangdi Co., Ltd. said that in view of the slowdown in China’s auto sales growth, China’s natural rubber demand and prices will decline in 2012, and another major reason for the decline in natural rubber demand is Use of synthetic rubber.
Gottland China's General Epoch said that due to the weak economic situation in both developing and developed countries, more and more people are concerned about the global economic situation in 2012. Okada Co., Ltd. is the largest rubber contract broker in the Tokyo Commodity Exchange.
The OECD of the Organisation for Economic Co-operation and Development predicts that China's GDP growth will be 8.5% in 2012, the lowest increase in 11 years. According to the China Association of Automobile Manufacturers, the growth rate of China's auto sales in 2012 is likely to record the lowest increase in 13 years.
According to industry insiders, the major problems faced by Chinese tire manufacturers are declining sales volume, overcapacity, and low prices. This problem can only be resolved when the overall economic environment in China and the automotive market have improved.
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