China's rubber industry braces for uncertainties

摘要

We are in a situation unprecedented in a century,"China Rubber Industry Association(CRIA)chairman Deng Yali set out at the China Rubber Conference 2020."Changes in supply-chain,technology,products and business models lie ahead of us."Deng's cautionary message at the event-this year streamed online 28 May from Beijing-was accompanied by data showing that China's major rubber-industry companies recorded a 21 % dip in first-quarter sales and profits down 41 % compared with a year ago.A fifth of the 367 major rubber companies CRIA surveyed reported loss in Q1,and the conditions would be worse for smaller firms,reported CRIA deputy chairman and secretary general Xu Wenying.During the first quarter,such companies'export delivery-value declined by 9.7%.Tire makers outperformed the average with just a 5% drop.Other stronger segments included reinforcement and moulds.The latex segment's profits jumped 141 % compared with a year ago,on account of surging demand for gloves,especially for nitrile rubber products,said Xu Wenying.Indeed,latex is also the only segment that upped its profit margin in Q1,from 2.4% a year ago to 6.7%,and the April results were even better,she said.