China rubber industry to pick up in second half

ERJ staff report (DS)

Beijing -- China's rubber industry is on a downward trend, but the momentum has slowed, according to a report from the China Rubber Industry Association on the first six months of 2011. However, with higher selling prices, the value of the business is sharply up on last year.

According to CRIA, the total output of its 400 member companies involved in all aspects of the rubber industry increased sales by 20 percent, to Yuan 144.2 billion (euro 15 743 million) in the first six months, compared to the same period last year. Exports were up by 33 percent, to yuan 40 billion. Aggregate pre-tax profit increased slightly, while aggregate after-tax profit fell

While total industrial output increased by 21 percent, output of tyres increased by only 2.4 percent. Sales revenue, however, increased by 20.3 percent, reflecting higher sellingprices. Export revenues increased by 33 percent. Radial tyre production increased by 5.9 percent

In general industrial rubber goods, the value of industrial output grew by 40 percent, while exports almost doubled, . Within this growth, O-ring production grew by 45 percent and automotive AVS products increased 40 percent.

In the carbon black segment, exports more than doubled

Overall, the CRIA saidd growth was slower than this time last year, largely due to the increased cost of raw materials, but also due to the downturn in the automotive sector. However, the signs are that automotive sales may be recovering, as June figures showed a slight rebound. The CRIA said it expects growth to [ick up in the second half due to improved raw material prices and increased automotive sales.

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6-month report from CRIA (Chinese language)

Above report auto-translated into English from Chinese