China’s Natural Rubber Imports to Grow

Typhoon Sarika landed in Wanning, Hainan province, on Oct. 18, crossing the entire province and caused severe damage to the island.

The rubber output of China was 840,000 tons in 2014, including 430,000 tons by Yunnan province and 390,000 tons by Hainan province.

Because of the special geographic location, Hainan is vulnerable to disastrous weathers, such as typhoon. Therefore, its rubber outputs are always more fluctuated than Yunnan.

This year’s typhoon Sarika swept the major rubber producing regions in Hainan, and the market is very concerned about the damage to the rubber trees in Hainan.

Judging from the photos taken during the rescue, many rubber trees toppled or cracked, showing the impact cannot be underestimated.

The situation this year is similar to typhoon Damrey's attack to Hainan in 2005, when the rubber output lessened 80,000 tons from 2004.

Because of the draught weather early this year, China's rubber output in Jan.-Sept. totaled 520,000 tons, lessening 37,000 tons from 2015.

The typhoon was expected to cut the rubber output in Hainan in Oct.

The Chinese rubber producers stop rubber tapping in Nov. and Dec., and the output capacity starts to decline. Accordingly, China's rubber output this year is very likely to be lower than in 2015.

Currently, the demand in the downstream is vigorous, the inventories are low, and the expected output has declined. As the rubber tapping is to stop, China's import of natural rubber is likely to hike.