China Rubber Association: 2012 Rubber Industry Export Pressure Increases

According to the report of the China Rubber Industry Association, the pressure on the rubber industry's exports will increase in 2012. It is expected that the growth rate of exports will continue to decline this year in 2012, but the decline rate will be narrowed, and the export delivery value is expected to be annual. The rate of increase will be about 20%, and the increase in the export volume of main products tires will continue to decline, and it will be at a level of risk. However, benefiting from the improvement in the domestic demand market, it is expected that the industry will continue to maintain steady growth. The main economic indicators will maintain growth of more than 20%, and the production of main products tires will increase by more than 8%.

According to the report, China's auto industry will recover in 2012 after undergoing a significant fall in sales growth in 2011. It is expected that the growth rate of the auto industry in 2012 will reach 6% to 8%, and the estimated sales volume will be around 20 million. This will have a significant pulling effect on the rubber industry.

In the international market, with the gradual implementation of the EU REACH Regulations and the EU Tire Labeling Act, which will be formally implemented in November 2012, the domestic tire companies exporting to the EU will face increasing pressure on safety and environmental protection. Some domestic key leading enterprises have already made relevant preparations, but there are also a considerable number of products produced by enterprises that do not meet the relevant regulatory requirements. In the U.S. market, the implementation of the China Tyre Special Protection Case that began in 2009 may be postponed, and the haze of the double-barreled case against all steel tyres has not been exhausted. It is expected that the trade friction situation in the future will escalate, and it is likely that the China Tyre will be tainted once again. . To this end, tire export companies must attach great importance to this trend.

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