Hangzhou, China – Chinese tire and rubber makers are hoping for an upturn in fortunes after the problems that beset them in 2015, according to the organisers of a conference on the supply of rubber oils for the sector.
Last year saw issues including trade barriers like antidumping and countervailing duties from the US and antidumping duties from the Eurasian Economic Commission, said EnMore in a release about the 7th China International Rubber Oil Summit 2016.
There were also negative developments, such as the bankruptcies of Deruibo Tyre and Capital Tyre and the shutdown of Giti Chongqing factory, added the 10 Jan release.
Meanwhile, it said, as China’s national standards for compounded rubber took effect on 1 July 2015, the new criteria and changes in natural rubber tariffs placed the industry under cost pressure.
On the other hand, the Chinese tire industry did achieve some significant milestones in 2015, especially overseas:
Last November, Linglong Tyre started TBR tire manufacture at Rayong, Thailand, its the first overseas manufacturing unit, while Doublestar’s plans to set up a new tire plant in Kazakhstan, the first overseas manufacturing base, were approved by the local government.
The join the ranks of other tire manufacturers such as Sailun Jinyu, Zhongce, Sentury and O’Green that already have plants overseas.
Against this backdrop, EnMore believes its summit, on 6-8 April in Hangzhou, China, will serve as “a bridge between RPO producers, traders and end users worldwide with a foothold in the local market.”
According to EnMore, the summit will look into the Chinese tire industry and measures to deal with “existing troubles” and the role of RPOs in the country.
EnMore went on to forecast that a current trend towards the use of TDAE oils would continue in the future – helped by the EU’s REACH chemical safety regulations.
REACH Amendment (EU) No. 1272/2013, extended the PAHs limit from extender oils to rubber and plastic parts on a wide range of consumer articles, it noted.
Apart from tires, said the release, other downstream sectors, such as shoe materials, modified bitumen, TPE/TPR , hot melt adhesives and lubricant blendstock are also attracting investment.