China tire companies worries decreasing rubber inventory

By May 16, there were only 62,600 tons of natural rubber, 106,200 tons of synthetic rubber in Qingdao Free Trade Zone, and keeping decreasing trend.

Actually, synthetic rubber in Qingdao were broken tire manufacturers' chattel mortgage belonging to banks, an insider told Tireworld.com.cn.

Those rubber cost is no more than 20,000 yuan/ton. If market price were lower than 20,000 yuan/ton, banks were hard to sell them out. 

In that case, rubber inventory in Qingdao Free Trade Zone were lower than 100,000 tons.

2018 Shanghai Cooperation Organization Summit will be held in Qingdao Shandong Province in June.

Qingdao will arrange companies stopping operation at that time.

And tire companies has kept high operation ratio to prepare productions ahead, which will further consume rubber。

Middle-size and small-size tire companies who highly depend on other inventories showed their worries on decreasing rubber inventory,while large-size tire company prepared adequately said no worries about the inventory.