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Wednesday, July 6, 2022

Butadiene rubber industry homogenization serious and dedicated environment-friendly models to be developed

On the current butadiene feedstock prices, raw material butadiene execute foreign mining enterprises theoretical amount of loss in the 1700-2000 yuan / ton (low domestic, high CFR China), and mutual supply of raw material butadiene enterprise theoretical loss amount in 1400-2350 yuan / ton, this part of the business this month with June butadiene feedstock, June mutual supply of butadiene price in 8300-9300 yuan / ton. Obviously currently butadiene rubber production enterprises are in the red, which is butadiene producers complained the main reason the industry difficult.

Butadiene customers deficit Trader trader cry grievances

2015 Up to now, the average price year on year decline butadiene rubber near 17% market operators providers generally reflect the difficult market operations. According to family Sinopec plans to reflect, “relatively speaking, the implementation of the monthly average price of Trader is also better, we do now have to keep up, and now the market is in a state Yindie particularly difficult to ship, if you perform billing schedule, the mainstream market upside down offer open appear goods deficit then, and for the price of a loss of more down. “market intermediaries reflect,” now can not enter the market directly, in April the upstream direction relatively obvious, save some cash, but the ship is quite difficult, downlink during the terminal “do not buy or” upstream end demand procurement process, obviously, “do not buy up” and some brokers have been incorporated into the idea of ​​other industries. “

Tire user terminal loss of business was the bottleneck

Although butadiene prices overall remain low, but the profit margins of the tire is not ideal, mainly tire profitable a few years ago, the expansion means serious surplus production capacity gradually, learned that the tire has repeatedly I want to rise up but difficult, but many manufacturers continue to reduce prices or in the form of protection and promotion snatch market, evident in the fierce price war, the loss tends to be the norm. And some manufacturers reflect this financial pressure and public opinion relatively not small, limited bank loans, lack of funds, some tire companies no choice but bankruptcy, it can be said tire overall business difficult.

Production fell automotive industry losses

2015 is the year of China’s reform, the poor performance of the domestic economy as a whole, the real estate industry into a crowded bubble period, China’s logistics industry sentiment index fell to 54.9%; commercial vehicle production in China can be seen from the data in the 2015 January- production in May showed an overall downward trend, down to 17.31%. This results in steel tire sales market downturn, the factory operating rate showed a downward trend, according to Zhuo record information monitoring data show that the first half of 2015 in Shandong tire industry The average capacity utilization rate of steel tires 62.25 percent, 8.46 percentage point decline compared with the same period in 2014. Chain, National People’s Congress, chairman of Changan Automobile Group, said Yin Jiaxu, high-profit vehicles for how long depends on the market value of the law, so the decline in automobile industry operating rates resulted into a loss of anxious.

In summary, butadiene rubber industry into a top-down chain losses, is what this industry will continue this way, does it mean that it is no good starting point? Let us briefly analyze:

Operating rate fell to 5 percent under half unit parking

Butadiene rubber plant in recent years the average operating rate decreasing significantly, the main factor is the decline in capacity utilization of excess capacity, the source of cash redundancy increase, the price war, survival of the fittest, no financial strength of companies had to stop. The profitability, the investment of several hundred million on a device to continue parking will not last forever, so the industry does need innovation, we need to break through, a look at the foreign ideas:

Recently, foreign media reports, Toyo Engineering Corporation and PTIntiKaryaPersadaTehnik (IKPT) represents, PT Indonesia Synthetic Rubber Company has been located in the building contract in Indonesia Qin Zhi Gong awarded a synthetic rubber plant companies. The project will design a total annual output of 120,000 tons of SSBR and neodymium polybutadiene rubber.Synthetic rubber will be used for the production of tires. The project is scheduled to be completed in 2018.

Lanxess Germany in Shanghai held a “China Green Tire Development Study” conference that in 2020, the green tire will account for more than 60% of the tire market. Lanxess said that the development of energy-saving and environmental protection, high-tech, high value-added green tire may ease China’s growing environmental pressures and resource pressures contribute.140,000 tons / year butadiene rubber plant planned RE Germany Lanxess construction on Jurong Island in Singapore in 2015 and put into production, due to imports from China, Singapore 0 tariff butadiene rubber, butadiene means so rare in Germany, Singapore, China put into operation export the cost advantage of the enhanced quality of its rare earth butadiene global leader in Germany, market acceptance of the strong, have a certain impact in the long analysis of China’s rare earth butadiene market.

Currently the overall direction of foreign investment has been concentrated on the rubber environmentally friendly solution polymerized styrene-butadiene and butadiene rare earth research and development, and our butadiene rubber plant is facing overcapacity, stop watching, waiting for an opportunity production status, partially put into operation butadiene corporate face of the status “higher than bread flour” also highlights the frustration. So to business survival, we recommend stopping device can develop into other directions, such as rubber or the development of environment-friendly use of different grades to meet the needs of various industries. Because butadiene rubber industry homogenization serious overcapacity, mainstream business without unique advantages, financial strength continued to save parking is invisible spring, only short-term non-dawn into hibernation.

Translated by Google Translator from   http://market.cria.org.cn/25/28027.html

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