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Although entering 2017, the rubber market changed the rally in 2016 and entered a wide range of shock adjustment stage
.
However, from the current point of view, the industry is still optimistic about the prospects of rubber, and this optimism is supported
by the following positive factors.
First of all, butadiene is still mainly extracted from the mixed carbon four after naphtha cracking, in recent years, the United States, the Middle East, including the domestic use of ethane and other light hydrocarbons as crackers, mixed carbon four output has been greatly reduced, resource constraints determine the total growth of synthetic rubber is constrained by resources
.
Secondly, at the end of 2016, the Ministry of Communications and other ministries and commissions jointly launched an anti-overload action, which led to a rapid increase in the production and sales of heavy-duty vehicles with a high tire replacement rate in China, increasing the demand
for tires.
As these demand grows, it is expected that the existing excess capacity
will be absorbed in about 3 to 5 years.
At the same time, the current low price of rubber also limits the growth of
new capacity.
Third, China's automotive industry is still growing, driving rubber demand
.
In the long run, the industry is optimistic about the domestic rubber market
.
