EVE Rubber Is Expected to Promote the Iterative Upgrade of the Rubber Industry in the Steady Tire Industry
The tire industry has absorbed vast demand for the increasing number of automobiles, whose half cost is occupied by the rubber. At present, the consumption of the domestic market is the biggest one with the self-sufficient rate of the nature of just 20%. To settle the problem of the unbalance between the supply and the demand, it is the chief method to increase the import of the natural rubber or to find the alternative product.
Car Ownership Is an Important Guarantee for Tire Demand
The Asia-Pacific region has become the core increment in recent years, especially China. The data shows that in 2019 global car sales reached 91 million vehicles, a year-on-year decrease of about 4%. From 2005 to 2019, the proportion of global car sales in major countries in the Asia-Pacific region increased from 31% in 2005 to 48% in 2019, of which the core power comes from China from 8.73% in 2005 to 2019 28.23%.
There is still much room for car ownership in the Asia-Pacific region, especially in in China and India. The long-term determinant of automobile ownership ceiling is population, finally determined by the speed of economic development, that is, GDP growth rate. Judging from the current stage of economic development and car ownership, there is still much room for car ownership
The Replacement Market Is the Main Force in the Tire Market
The matching ratio of cars and tires is 1:5, and the matching ratio of trucks and tires is about 1:11; in the replacement market, each car needs to replace 1.5 tires per year, and the replacement coefficient of construction machinery and truckload machinery is higher than that of cars. More than 70% of the demand in the tire industry is created by car ownership. Therefore, tire demand is more rigid than the new car market, and the impact of new car sales cycle fluctuations on the tire market is relatively weak.
In 2018, the global tire market size was about 170 billion US dollars, about 1.5 billion were passenger car and light vehicle tires, and about 220 million were truck and bus tires. About three-quarters of global tire demand comes from the replacement market, and one quarter comes from the new car market.
The Global Competitive Landscape Is Constantly Changing, And the Status of Local Companies Is Constantly Improving
The world's manufacturing center of gravity is shifting to the Chinese market, bringing international competition and industry to the country. At present, China, as the world's largest automobile production and sales country, does not match the production and sales status of automobile tires and its entire vehicle. The tire companies as a whole are relatively small, but their growth rate is relatively fast. In 2019, the global tire market demand is about 1.785 billion pieces, and China's tire production reaches 652 million pieces, accounting for about 37% of the global share, an increase of about 4 percentage points from 2015.
At present, the global natural rubber cultivation area is mainly concentrated in Southeast Asia, and the cultivation area accounts for about 90% of the world. The concentration of international rubber consumption is relatively high. The consumption of the top three consumer countries accounts for about 50% of global consumption. Due to the transfer of global manufacturing to China and the rise in China's total consumption and structural upgrades, China has become the world's largest rubber consumer and importer. In recent years, the proportion of imported natural rubber in my country's rubber consumption has been rising, and the natural rubber self-sufficiency rate has dropped to 20%, which is below the strategic line of 1/3.
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The shortage of natural rubber makes the domestic choice to import rubber while actively extending the field of synthetic rubber. The research institute under Soft Control has been conducting research and development of synthetic rubber technology since 2013. The result is EVE glue, which aims to improve the three properties of wear resistance, wet slip resistance, and rolling resistance at the same time. On June 9 this year, Soft Control Holdings' subsidiary officially launched the 300,000-ton chemical refining project, which marked the industrialization of EVE rubber into the fast lane.
The three performances that EVE improves are just a few key factors that did not coexist in the past. For the reasons of three kinds of self-performance, when making tires, it is impossible to combine three major performances at the same time.
Therefore, this new chemical refining project is of epoch-making and milestone significance, without any technical experience reference. It achieves integrated innovation of multiple new technologies, multiple new materials, and multiple new processes. The industrialization of this technology is expected to greatly improve the performance of rubber tire products and promote the rapid iterative upgrade of the entire industry.