Currently, trade frictions between China and United states are showing signs of easing, which is relatively beneficial to the export of tyres and other rubber products in future, but the later stages are not clear, synthetic rubber downstream industry production and consumption still has a certain degree of negative impact.
On the one hand, China production capacity of SBR has been over-produced in the past two years. On the one hand, the overall plant operating rate has been below 60% for a long time due to low demand . On the other hand, the production capacity of cis-1,600,000 tons of rubber has reached 1.6 million tons, and there is almost excess capacity. At present, there are only 40,000 tons per year in Zhenjiang and the production plan of Shandong ShengXing unit. However, as it is still at the early stage of planning, the possibility of putting it into production in the next two years is not very likely, production capacity is expected to be stable in the synthetic rubber, while the operating rate depends on market supply pressure and profit.(data from www.yunken.com)
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