QinRex according to foreign research report shows that since 2011 of the global natural rubber market in an oversupply state. 2011 supply surplus of 220 thousand tons, in excess of 140 thousand tons in 2015. The tapping area increased, as well as the slowdown in the effect of tire industry, is expected to 2020, the excess supply of 110 thousand tons. The price of natural rubber has been hovering at a low level due to the slow growth of the global economy and the excess supply of natural rubber.
As of the end of 2015, the price of natural rubber China has fallen to $1140 / ton, which is tapping the cost price. 2016, the global average price of natural rubber in the 1200 U.S. dollars to 1500 U.S. dollars / ton between. China's natural rubber production in 2015 fell by 5.5% to 794 thousand and 200 tons. On the one hand is to increase the weather factors limiting rubber plantation area, on the other hand, rubber prices hovering at the cost of the line, a lot of people abandoned the production of rubber adhesive. In 2016 China natural rubber production is expected to decline further in 5.3% to 752 thousand and 100 tons. China, as the world's largest consumer of rubber, in 2015 reached 4 million 682 thousand tons, accounting for 38.5% of the world's total. Due to limited domestic production, China has to import a large number of rubber to meet their own needs.
2015 imports increased by 4.8% to 2 million 736 thousand tons, while prices have dropped by 24.5% to 1431.6 U.S. dollars / ton. The decline in rubber prices and acreage reduction under the background of Chinese automobile industry developed rapidly, which is conducive to enhance the rigid demand of the tire, rubber consumption upgrade. 2016-2020, China rubber supply and demand contradiction will be further intensified; to 2020, the gap between supply and demand will reach 5 million 142 thousand tons, compared with 2015 growth of 32.3%. Natural rubber industry, regional characteristics, mainly concentrated in Thailand, Malaysia and other Southeast Asian countries, such as Dong, Hong Manli, China and other countries are representative of the industry enterprises. In the downturn in the price of these companies to speed up the strategic layout, in order to improve product competitiveness and gross margin. Increase the planting area in the main countries on the one hand, the expansion of the plant, so as to enhance its production capacity, on the other hand, focus on rubber tires and other high-end market, such as the military.