The global rubber and tire industry is under double pressure, including supply concerns in Asia and European and American businesses withdrawing due to cheap imports.
World rubber price
At the end of the trading session on July 1, the price of rubber futures for July delivery on the OSE in Japan decreased by 0.4% (1.3 yen) to 312.9 yen/kg. In China, the price of rubber futures for July delivery on the Shanghai Futures Exchange (SHFE) decreased by 0.2% (30 yuan) to 13,905 yuan/ton. In Thailand, the price of rubber futures for August delivery increased by 0.9% (0.67 baht) to 73.26 baht/kg.
The natural rubber market recorded a decline despite the extreme weather conditions that are occurring in many key production areas. According to a report by Japan Exchange Group on July 1, heavy rains in southwestern China, northern Thailand, Vietnam and the Philippines have raised concerns about supply disruptions. The Thai Meteorological Department has warned of heavy rains from June 30 to July 6 in many key rubber production areas, which could slow down harvesting and transportation.
While Asian supplies are at risk, Western companies are facing increasingly fierce competition from cheap imports. French tyre giant Michelin has announced plans to close its factory in Guarulhos, Sao Paulo, Brazil, due to its inability to compete with imports from Asia. The factory, which produces inner tubes for motorbikes, bicycles, industrial tyres and semi-finished products, employs around 350 people and is expected to cease operations completely by December 2025.
In a statement on June 27, Michelin said the decision was a result of overcapacity caused by a surge in imports from Asia – at prices far below the cost of local production. The motorcycle and bicycle tire segments were particularly hard hit. “The decision to cease operations was a last resort when no other viable options could be found,” the company said.
However, Michelin still maintains a presence in Brazil with three other factories, including a truck tire factory in Campo Grande (Rio de Janeiro) with more than 4,000 employees, the Itatiaia industrial complex (production of tire reinforcement metal cores) and a facility in Manaus specializing in motorcycle and bicycle tires.
In another development, Michelin is participating in a circular economy project in the UK to reduce greenhouse gas emissions. At its Stoke-on-Trent plant, Michelin is working with Murfitts – the UK’s largest tyre recycler – to build a material recovery facility from waste tyres. The project will process around 12,500 tonnes of tyres per year (equivalent to 1.35 million car tyres), producing recycled carbon black (rCB) and pyrolysis oil (TPO) that can be reused in the production of new tyres or as an alternative fuel.
According to Murfitts, this process not only provides energy for production at the Michelin factory, saving 1,500 tons of CO₂ per year, but also plays a key role in the closed-loop recycling chain, aiming at the sustainable development goals of the global rubber and tire industry.
Domestic rubber price
At Mang Yang Rubber Company: Purchase price decreased for both latex and mixed latex.
The purchase price of latex decreased by 6 - 7 VND/TSC/kg, specifically: Type 1 was at 400 VND/TSC/kg, down to 393 VND/TSC/kg; Type 2 latex was at 395 VND/TSC/kg, down to 389 VND/TSC/kg.
Mixed latex decreased by 11 VND/DRC/kg, specifically: Type 1 at 399 VND/DRC/kg, decreased to 388 VND/DRC/kg, mixed latex type 2 at 351 VND/DRC/kg, decreased to 340 VND/DRC/kg.
Phu Rieng Rubber Company: The price of latex is 415 VND/TSC/kg; The price of mixed latex is 380 VND/TSC/kg.
Ba Ria Rubber Company: The purchase price of raw latex at Xa Bang factory today has no fluctuations, specifically:
Price of latex: Level 1 is priced at 415 VND/ TSC degree/kg applied to TSC degree from 30 and above; Level 2 is priced at 410 VND/ TSC degree/kg applied to TSC degree from 25 to under 30; Level 3 is priced at 405 VND/ TSC degree/kg applied to TSC degree from 20 to under 25.
Binh Long Rubber Company: Purchase price of latex: 386-396 VND/TSC/kg; mixed latex with 60% DRC is priced at 14,000 VND/kg.
Source: https://baolamdong.vn/gia-cao-su-hom-nay-2-7-dien-bien-trai-chieu-truoc-nhieu-suc-ep-380895.html
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