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According to Xu Yaping, the formation of this situation is mainly two points: First, the impact of the financial crisis, the decline in market demand; foreign neoprene increase in imports last year, but the price has dropped significantly, the severe impact of the the domestic market. He said an estimated Changshou neoprene production last year at 2.5 million tons, more than 3,000 tons less than last year, business inventories has reached more than 2000 tons.
Neoprene production of another domestic manufacturers Shanxi Synthetic Rubber Group Co., Ltd. is roughly the case. Wong Kwok-hing, Mountain Oak Group General Manager from September last year, the market situation worsened, companies are forced to significantly reduce production load, operating at only about 40% to the end of the year, only 800 to 900 tons per month, it is estimated that last year's production is only 2.05 tons, business inventories more than 2000 tons. He told reporters that last year, raw materials cost of enterprises increased substantially, calcium carbide, a year-on-year increase in the price of 700 yuan (t price, the same below), the price of coal rose 80%, the price of salt rose 60%, neoprene overall cost increase of more than 6000 yuan. However, Wong Kwok-hing to worry about the mountain oak Changshou difference is that located in the north, a cold climate so that companies will not dare to stop production, because once stopped the equipment is easily damaged by frost, and then resume driving difficult.
China Synthetic Rubber Industry Association learned that the normal annual demand in the domestic market neoprene 6.5 million tons last year by the financial crisis affecting demand declined slightly to 60,000 tons, but the price of imported neoprene dropped significantly, occupy the domestic market share increased significantly, resulting in substantial decline in sales of domestic enterprises, even on the verge of discontinuation. According to customs statistics, 1 to November last year, China's imports of neoprene 2.13 million tons, estimated annual import about 2.3 million tons. It is understood that the second half of last year, especially after a few months, imported neoprene prices significantly decreased, the difference of imported of neoprene and domestic neoprene in the past generally maintained at about 0.8 million to 1 million, the maximum difference of 2 million yuan, but now has been basically flat. In addition, the market also found a lot of decks glue "(good charge times neoprene), the quality is not bad, but the price is only 2.2 million to 2.4 million, compared with domestic plastic lower 10000 yuan.
XU Ya-ping told reporters that last year made neoprene prices remained stable, even in the first half of the year almost all prices are skyrocketing, the price of domestic neoprene is only slightly raised 3%, while prices of raw materials rises to 37 %. The reason why there is no substantial price increases, mainly to consider the interests of downstream users and downstream enterprises will naturally affect the interests of the upstream enterprises hurt. But they also led the enterprise in an awkward position, there is no accumulation of profit in the first half of last year, substantial loss in the second half of the year, the business facing difficulties. He also introduced the face of cheap Jin Koujiao, some users very contradictory want with cheap Jin Koujiao, worried about potential repercussions stable relationship between supply and demand with domestic enterprises, so the dilemma.
Wong Kwok-hing said last November to December, with the domestic implementation of the policy of stimulating domestic demand, the downstream production warmer, demand began to increase, but domestic production of two neoprene state of the business has gone from bad to worse, the verge of discontinuation. He was very worried, stimulating domestic demand does not bring good domestic producers gave foreign enterprise market. If the two neoprene producers out of the market, foreign enterprises simply can not meet the domestic market demand, then prices will not price now.
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