Weak auto market: China’s demand for natural rubber will decline next year

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The last edit to this post was made by Plower on 2011-12-28 at 17:20. An executive at Okachi Corporation in Japan said that given the slowdown in the growth rate of car sales in China, both the demand for natural rubber and its prices in China will decline next year. Another major reason for the decrease in demand for natural rubber is the use of synthetic rubber. The head of Okuchi Corporation’s China branch said that as economic conditions in both developing and developed countries are showing signs of weakness, more and more people are concerned about the global economic situation next year. Kondi Co., Ltd. is the largest rubber contract broker at the Tokyo Commodity Exchange. The Organization for Economic Co-operation and Development (OECD) predicts that China’s GDP growth rate will be 8.5% next year, the lowest level in 11 years. According to the China Association of Automobile Manufacturers, the growth rate in automobile sales in China next year is likely to be the lowest it has been in 13 years. Industry experts say that the main problems facing Chinese tire manufacturers are declining sales, overcapacity, and low prices. This issue can only be resolved when the overall economic environment in China as well as the conditions in the automobile market improve