Why is rubber tires frequent price cuts unhappy?

On July 8, 2013, the natural rubber spot trading center jointly created by Bohai Commodity Exchange and Qingdao Rubber Valley Co., Ltd. was unveiled and traded in Qingdao. The natural rubber spot trading target of the listed transaction is No. 20 standard rubber, which is the main type of imported natural rubber, accounting for more than 80% of the total amount of natural rubber imports.

Industry insiders believe that the listing of natural rubber spot trading centers will change the traditional natural rubber trading model, provide one-stop service and supply chain overall solutions for all parties participating in natural rubber circulation, and provide an open, transparent, and efficient spot. Trading platform.

The cost reduction allows companies to enjoy the bitter fruit

In recent years, natural rubber prices have experienced "roller coaster" fluctuations. In 2011, when it reached a peak of 38,000 yuan per ton, it fell sharply thereafter. In 2013, it fell from 28,000 yuan per ton to 17,000 yuan, forcing Thailand, Indonesia, and Malaysia to become the main producers of natural rubber. Use non-market measures to maintain the stability of rubber prices.

Rubber is one of the four major industrial Raw Materials, accounting for more than 60% of the cost of raw materials for the rubber tire industry in China. For more than 900 rubber tire companies in China, rubber prices are not good news, and the answer is surprising. Du Yuxi, chairman of China's rubber tire industry giant Sailing shares, frankly stated: The cost reduction has given companies a taste of bitterness. Companies hope that the price of natural rubber will stabilize, and hopefully the stars will look forward to the moon.

Why did such an anomaly occur? Du Yuxi explained that in a short time, companies may taste the “sweetness” brought about by the cost reduction. However, in the long run, rubber price volatility is too great to cause endless harm. On the one hand, price fluctuations have greatly increased the difficulty of pricing products and are not conducive to normal product transactions. On the other hand, tire sourcing companies have also continued to struggle: Rubber prices have fallen, and tire prices have also fallen. Tire companies have been tied to combat vehicles.

"More importantly, the risk of the company's production and operation is also increasing with the price fluctuations." Du Yuxi said that due to the current natural rubber trading in the market, the traditional one-on-one trading model is still adopted, and the buyer passed rubber. The trader, or directly with the producer, signs a purchasing trade contract, and the pricing of the commodity refers to the price of the rubber futures. As we all know, futures do not reflect the real-time prices of goods, but reflect the forward prices of goods. At the same time, futures prices are actually controlled by capital and do not fully reflect market supply and demand. This caused the price of natural rubber to fluctuate greatly, and the price “roller coaster” became the norm. With price fluctuations and declines, transaction defaults that occurred in intermediate links such as suppliers frequently occurred, and the 10% margin almost lost its binding force. As a result, it is difficult for enterprises to effectively control the quality of raw materials, market distribution, etc. Trade credit risks and business risks naturally increase. "The price of raw materials is not as low as possible, but it should be stable, open and transparent," said Du Yuxi.

Rubber trading model transformation and upgrading imminent

As a tire-producing country, China's natural rubber imports account for one-third of the world's total, and frequent defaults have also caused China's enterprises to face a huge "confidence crisis" in Southeast Asia, where natural rubber is the main producing area. Zhang Wei, general manager of Qingdao Rubber Valley Co., Ltd., when he participated in a business activity in Thailand a few months ago, the question most asked by the local agricultural department and even the rubber farmers was “How much rubber is your company going to buy from Thailand?”

No matter from which side, it is imperative to realize the transformation and upgrading of the rubber trading model. Zhang Jian told reporters that the spot trading center jointly built by Rubber Valley and Bohai Commodity Exchange was an attempt to promote the transformation and upgrading of Rubber Valley.

Zhang Jian told reporters that Rubber Valley is a high-end industrial cluster area of ​​the chemical rubber industry co-sponsored by the China Rubber Industry Association, local governments, and Qingdao University of Science and Technology. After building in recent years, it has established a complete commodity trading, e-commerce, Warehousing logistics, technological innovation and other 12 platforms have gathered top-notch upstream and downstream companies in the world and become a highly integrated chemical rubber industry ecosystem. "It can be said that Rubber Valley has developed into the 'silicon valley' of the global chemical rubber industry."

The establishment of rubber spot trading center is Rubber Valley's use of this advantage, through the integration of industry resources, business model innovation and trade process reengineering of the entire industry chain, to provide a one-stop service and supply chain overall solution for all parties involved in natural rubber circulation. , To provide an open, transparent and efficient spot trading platform.

How spot trading works? Zhang Hao told reporters that spot trading center is a third-party platform, rubber producers and applications can use this platform for rubber spot trading, on the one hand to save the trader this link, on the other hand, the parties to the transaction Eliminating the cumbersome negotiations with multiple companies, and completely based on real-time spot price transactions, to achieve open and transparent transactions, reduce transaction costs. "The core of it is to push the pricing mechanism back from the futures spot."

Zheng Yu, the deputy general manager of Bohai Commodity Exchange, disclosed that in the product design, the trading center adopted the "domestic customs and customs" bonded warehouse for delivery, and used the Qingdao-bound bonded area's "exempt, tax-free, and bonded" mature imported rubber trade circulation and warehousing and logistics service system. Through the existing domestic and foreign customers of natural rubber, joint industrial giants in Southeast Asia and domestic leading companies to achieve seamless integration of cross-border transactions.

Xu Wenying, vice president of China Rubber Industry Association, commented that the landing of natural rubber varieties on the spot trading platform will promote the change in the pricing structure of natural rubber and form a multi-layered market system that interacts and interacts with futures markets, spot markets, and physical circulation markets. Promote the in-depth docking of upstream and downstream companies and promote the healthy development of the rubber industry.

The Onshore Pipeline is the RTP used on the land.

The advantage is lgith weight, high temperature resistant, high pressure resistant, corrosion resistant, abrasion resistant.

The main application of products is transportation of oil, gas, polymer and water in oil field, gas field.

The instruction is three layers or five layers.

The size is diameter 2 inch to 6 inch and the pressure is 750 PSI to 2300 PSI.

Onshore Pipeline

Onshore Pipeline,8 Inch Onshore Pipeline,Flexible Onshore Pipe,Reinforced Onshore Pipe

Changchun Gaoxiang Special Pipes Co., Ltd. , http://www.golsunpipe.com