BEIJING, Jan 26, 2011 (Xinhua via COMTEX) --
China Petroleum and Chemical Industry Federation (CPCIF) has called for regulatory measures taken by related authoritative departments on natural rubber prices in a bid to ease tire industry's cost pressure including selling of reserve rubber, and cut or cancellation of import tax.
Since the fourth quarter of last year, domestic natural rubber prices have been rising persistently and have already topped 40,000 yuan/tonne. With soaring rubber prices, the downstream tire industry has incurred losses on the whole.
Decreasing self-sufficiency of natural rubber is a key reason to trigger price rise. In 2005, the self-sufficiency rate dived under the internationally recognized security line of 30 percent, and continued to remain at low levels in the following years, 25 percent in 2007, 22 percent in 2009 and likely 20 percent in 2010.
CPCIF held that cost pressure, demand expansion and adverse weather are three factors to prop up prices of natural rubber.
As natural rubber prices are rising crazily, tire industry will suffer losses and the downstream automobile and machinery industries are expected to be affected given the 20 percent of import tax rate on prices and 2,000 yuan/tonne on volume, many tire enterprises said.
In the short term, rubber prices can only be stabilized by selling state stockpiles and removing import tariff, an unnamed industry noted. (Edited by Liu Xiaoyun, liuxy08@xinhua.org)
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