The long-anticipated SNR 20 rubber was officially traded on Bohai Commodity Exchange (BOCE) on July 8, 2013, which’s major step forward for the rubber industry.
BOCE-Rubber Valley Natural Rubber Exchange Grand Opening & Natural Rubber (Rubber Valley) Listing Ceremony was solemnly inaugurated at Qingdao Shangri-La Hotel in the morning on July 8. Pinij Charusombat, former Vice Prime Minister of Thailand and Honorary President of Thai-Chinese Culture and Economy Association, Liu Mingjun, Vice Mayor of Qingdao Municipal Government, Xu Wenying, Vice President and Secretary-General of China Rubber Industry Association, officials of relevant departments, and upstream and downstream enterprises representatives, attended the ceremony.
Li Shiqiang, General Manager of Sri Trang China, the world’s largest producer of natural rubber, pointed out that the trading of natural rubber variety on Bohai Commodity Exchange will change the traditional trading fashion of natural rubber and promotes the healthy and stable development of the rubber industry. Li added that SNR 20 rubber, as the primary item of the Natural Rubber Exchange, is the main variety of imported natural rubber and accounts for more than 80% of the total natural rubber imports, which has been long expected to be traded on the exchange center by the market.
Vice Mayor Liu Mingjun, said that as China’s important regional economic center to the world and the shipping center in Northeast Asia, Qingdao has been at the leading level in domestic rubber industry. The opening and listing of Natural Rubber Exchange co-built by Bohai Commodity Exchange and Rubber Valley is an important milestone in the development of Qingdao rubber industry. The Exchange will instill new vitality into the establishment of a new mechanism of rubber prices for China and create a new type of rubber trading platform for rubber producers, traders and manufacturers.
According to Zhang Yan, CEO of Rubber Valley, by integrating industrial resources, innovating business model and reengineering trading process, Natural Rubber Exchange wishes to provide one-stop supply chain solutions including spot trading, settlement, delivery, inspection, warehousing, logistics, financing, information, data, training, consulting, and other services for all parties involved in the circulation of natural rubber.
Zheng Yu, BOCE Deputy General Manager, revealed that natural rubber (Rubber Valley) adopts “within the territory, but outside customs supervision” during bonded warehouse delivery in product design, takes full advantage of the mature “free license, tax exemption and bonded” import rubber trade flowing, warehousing and logistics service systems of Qingdao Free Trade Zone, and unites industry giants in Southeast Asia as well as domestic leading tire factories through the existing customer base both at home and abroad, to effectively realize seamless joint of cross-border trade.
Xu Wenying, Vice President and Secretary-General of China Rubber Industry Association, said that the prices of natural rubber have fluctuated irrationally in recent years and affected the development pace of the domestic rubber industry. The establishment of Natural Rubber Exchange provides an open, transparent and efficient spot trading platform for the rubber industry, and will drive changes in the pricing patterns of natural rubber to form a multi-level market system which the futures market, the spot market and the physical distribution market interact with each other. “Faced with industry development status, the upgrading of natural rubber trading patterns is imminent, and BOCE-Rubber Valley Natural Rubber Exchange has made a rewarding attempt on how to transform and to which direction the industry transformation turns.” Xu said.
It is understood that in recent years, the continuous fluctuations of natural rubber prices have resulted in a vicious cycle that over high price could harm the interest of the enterprises and over low price could harm the interest of rubber plantation owners. Especially, since 2013, the natural rubber industry as a whole has not been optimistic, for example, the continuous sharp decline of natural rubber prices, the backlog of a large number of imported spot goods, the sustained release of upstream capacity, intensified trade credit risks, frequently-occurred trading defaults, etc., and the pressure within the industry has been dramatically highlighted.
The enterprises and investors all wished that BOCE-Rubber Valley Natural Rubber Exchange could really play the anticipated role and achieve its effects to promote the healthy and sustainable development of the rubber industry.
Source: globaltimes.cn
