Despite the strong upward trend in the rubber market since August coming to an end and prices experiencing a temporary decline, the market remains supported by tight supply-demand dynamics and persistently high oil prices. As a result, rubber prices have remained relatively stable across different types. It is expected that this supportive environment will persist for the foreseeable future, with price fluctuations becoming the norm rather than the exception.
In 2005, domestic rubber resources saw a modest increase. According to statistical data, the total new rubber resources produced in the first three quarters of the year reached approximately 3.43 million tons, marking a 4.7% year-on-year growth. Natural rubber production stood at 1.42 million tons, up 5.6%, while synthetic rubber output reached 201 million tons, rising 4.1%. In September alone, new rubber resources increased by about 470,000 tons, reflecting a 13.2% rise compared to the previous month.
However, China’s natural rubber production faced challenges due to severe natural disasters, particularly in Hainan, where typhoons and droughts disrupted output in some areas. The estimated natural rubber production for the first three quarters was around 430,000 tons, showing a year-on-year decline. With the fourth quarter being a low season, annual natural rubber output is expected to be around 590,000 tons, slightly below the previous year's level.
In contrast, synthetic rubber production grew steadily throughout the year. By the third quarter, the national output of synthetic rubber reached 1.19 million tons, a 9.5% increase from the same period last year. September output was 139,400 tons, up 17.4% year-on-year. The annual synthetic rubber output is projected to reach approximately 1.6 million tons, representing an 8% increase over the previous year. Overall, total rubber production in the first three quarters reached about 1.62 million tons, a 6.3% year-on-year increase. Annual production is expected to exceed 2.2 million tons, up 5.7% from the prior year.
China’s rubber imports remained slightly positive in 2005. Customs data showed that the country imported 1.81 million tons of various rubber types in the first three quarters, up 2% year-on-year. While this growth was slower compared to previous years, imports surged significantly in the third quarter. For example, in September, imports reached 247,900 tons, up 13.8% from the previous month and 17.7% year-on-year. Natural rubber imports totaled 990,000 tons in the first three quarters, an increase of 7%, while synthetic rubber imports rose 2.8% to 820,000 tons. September imports of natural rubber reached 140,000 tons, up 16.7% year-on-year, and synthetic rubber imports hit 110,000 tons, up 10.3% from the previous month.
China’s economy continued to grow rapidly in 2005, with GDP increasing by 9.4% in the first three quarters. Fixed-asset investment, industrial output, and foreign trade all maintained robust growth. Tire production in the first three quarters reached 223.8 million units, up 29% year-on-year, with September output hitting 242.7 million units, a 19% increase. Annual tire output is expected to approach 300 million units, reflecting a 5% growth.
With strong growth in rubber product output, domestic rubber consumption has also risen sharply. Total rubber consumption in the first three quarters reached at least 3.6 million tons, a more than 15% year-on-year increase. Natural rubber consumption exceeded 2 million tons, while synthetic rubber use surpassed 600,000 tons.
Market prices have continued to climb, driven by supply-demand imbalances and rising oil prices. According to the Ministry of Commerce’s monitoring system, the average price of natural rubber No. 5 in key areas reached 16,350 yuan per ton in September, up 28.3% from the start of the year. Prices for styrene-butadiene rubber and butadiene rubber also rose, reaching 14,925 yuan and 15,720 yuan respectively, up 11.6% and 12.7%.
Due to the sharp increase in natural rubber prices, by the third quarter, natural rubber had become more expensive than synthetic rubber, reversing the previous abnormal price inversion between the two categories.
In August, dry rubber prices in Hainan and Yunnan were 1,157,660 yuan and 15,393 yuan respectively, showing slight increases from the beginning of the year but rising significantly compared to the same period last year—by 23.56% and 25.56% respectively. Prices continued to climb in September.
The spot price surge also drove up futures prices on the Shanghai Futures Exchange. By the end of September, the average settlement price of the three-month contract reached 17,390 yuan, up 7.6% from the previous month and 45% from the start of the year. The upward trend remained strong, signaling continued bullish sentiment in the rubber market.
Typical Pre Expander
ordinary intermittent pre expander,Foam Pre Expander Machine,EPS Foam Pre Expander Machine
Hangzhou Sutuan Machinery Co.,Ltd.
Leading EPS EPP ETPU machinery manufacturer , https://www.sutuanmachinery.com