Abstract:Natural rubber is not only an important agricultural product alongside grain, cotton and oil, but also the four major industrial raw materials and important strategic materials alongside steel, petroleum and coal, which has an important position in the mainland, and the mainland has a large demand for it and relies on imports to meet consumer demand. In 2022, the mainland will import 2,636,100 tons of natural rubber, export 24,200 tons, and the apparent demand will be 3,430,300 tons.
1. Definitions and Classification
The rubber industry is mainly divided into natural rubber and synthetic rubber, of which natural rubber refers to the natural rubber latex collected from rubber trees, which is made of elastic solids after rubber tapping, rubber collection, latex purification, latex solidification, thinning and crepe cleaning, granulation, drying and baking, baling and packing, inspection, stacking and other processing processes. Natural rubber can be divided into two main categories according to its form: solid natural rubber and concentrated latex. Solid natural rubber is divided into traditional manufacturing methods and standard manufacturing methods: traditional manufacturing methods to produce film (cigarette film, Zou film glue, etc.), and standard manufacturing methods to produce standard rubber (CV, L, WF, etc.).
Second, industry policies
The policy situation of the natural rubber industry in mainland China can be summarized as follows: the government has jointly issued policies to provide support from planting, production, standardization construction, taxation, rural revitalization and other aspects, aiming to promote the high-quality development of the natural rubber industry and ensure the stability and safety of the national natural rubber supply chain. At the same time, the government also pays attention to environmental protection and sustainable development, strengthens the prevention and control of volatile organic compound pollution, and promotes the green development of enterprises. The introduction of these policies will help enhance the international competitiveness of the mainland natural rubber industry and promote the high-quality development of the natural rubber industry.
Third, the development process
The development process of the natural rubber industry in mainland China has gone through a stage from the beginning to the rapid development and then to the gradual maturity. In the early days of the founding of the People's Republic of China, in the face of the extreme shortage of rubber and the dilemma of the Western blockade, the country began to attach importance to and restore the old rubber plantation, marking the beginning of the industry. Subsequently, in the 80s of the 20th century, with the rise of private rubber and technological breakthroughs, the industry expanded rapidly and formed three stable production bases. After entering the 21st century, state-owned farms and private capital have jointly promoted the industry to maturity, made breakthroughs such as the success of large-scale rubber planting in northern latitudes, and improved the industrial technology system.
Fourth, industry risks
1. Risk of natural disasters
Rubber trees are long-term crops, and the rubber production capacity can be slowly recovered after natural disasters, but the rubber trees with serious damage can not fully recover their rubber production capacity, and the cold disaster, drought, pests and diseases affect the production capacity of rubber plantation. At present, mainland rubber is mainly concentrated in Hainan Province and other places, Hainan Island is located in the typhoon through the area, under normal circumstances, the impact of typhoons below level 8 on the rubber forest is very small, but a few strong typhoons that occur once in decades will have a more serious impact on the production capacity of the company's rubber forest, if typhoons, insect pests, drought and natural disasters occur, it may affect the production of the mainland natural rubber industry.
2. Price fluctuation risk
Natural rubber is a basic industrial raw material and bulk commodity, with a global pricing system, and its demand is closely related to economic fluctuations, and its cyclicality is more obvious. Natural rubber prices can sometimes fluctuate dramatically in the short term due to factors such as low supply elasticity of agricultural production, natural disasters, monopolies by international producers, and increasing speculative capital activities.
3. Manage risk
Rubber cultivation is the basis of our business, and rubber trees are long-term crops that can be produced for more than 30 years. In addition, the rubber tapping link is labor-intensive, and the majority of rubber workers need to work in the field. It is very important for the sustainable development of enterprises in the industry to improve the incentive and distribution mechanism for the majority of glue workers, improve the management efficiency of enterprises in the industry, and establish a good balance between the interests of rubber workers and the interests of enterprises in the industry, and between the current income and long-term development of enterprises.
4. Market competition risk
Continental Natural Rubber is facing increasingly fierce market competition from domestic and foreign rubber producers and traders. The main natural rubber producing countries in Southeast Asia have a relatively long cutting period and are less affected by typhoons, so their natural endowments are more superior. The mainland's natural rubber industry is a product of the planned economy, and has been guided and protected by planning in the past, which has increased the disadvantages in terms of cost and efficiency. After China's accession to the WTO, it has abolished the import quota management of natural rubber, further implemented zero tariffs on composite rubber imported from major ASEAN countries in 2009, and lowered the tariff rates of some imported rubber products such as standard rubber since 2010, and mainland natural rubber producers are facing greater competitive pressure from the international market.
Fifth, the industrial chain
The upstream of the industrial chain of the natural rubber industry is mainly the rubber planting industry (pastoral glue, cup glue and raw film) and rubber processing equipment (rubber plastic refining equipment, rubber molding equipment, rubber vulcanization equipment, etc.), the midstream is the production and processing of natural rubber, and the downstream is rubber products, including tires, adhesives, latex gloves, rubber hoses, rubber shoes, etc. Upstream planting enterprises and equipment manufacturers provide basic support for industrial development, midstream enterprises such as rubber processing and sales companies promote the expansion of industrial scale, and downstream products are widely used in tires, adhesives and other fields, forming a complete industrial chain.
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