Yan Feng

Natural and compound rubber is mainly used in tires, shoes, hoses, tapes, insulation and sheathings of wires and cables, and other general products. But the former is primarily applied to torsional vibration damper, engine shock absorbers, machine mounts, suspension components of rubber-metal assembly, diaphragms, and molded products.

The limitations on the nature and planted areas lead to the capacity of Chinese natural rubber that can't meet actual demands, so much rubber import becomes necessary.According to the General Administration of Customs of the People's Republic of China (GACC), the imports of Chinese natural and compound rubber are analyzed from the aspects of import quantities, importing countries, regions, provinces and cities, and trade forms.

Import analysis of natural rubber

1. Changes of import volume

From 2017 to 2021, the imports of Chinese natural rubber (including technically specified rubber, ribbed smoke sheets, and other natural rubber in primary forms) showed a declining trend year by year and then took upward momentum. The top imports were 2 299 200 tons in 2017, and 1 835 300 tons in 2021, up about 6.18 percent compared with the minimum volume in 2020 (the same below). 

Pic 1 Natural rubber import changes during 2017-2021

From 2017 to 2021, the imports of Chinese natural ribbed smoke sheets initially declined for consecutive years, followed by the growth. The top imports in 2017 were 331 300 tons, while the minimum imports in 2019 were 162 500 tons, 31.72 percent lower than a year before, both of which registered about 14.41 percent and 8.57 percent of total imports respectively. The imports in 2021 were 195 100 tons, holding 10.63 percent of the total, 17.89 percent lower than the last year.

From 2017 to 2021, the imports of Chinese natural rubber in primary forms showed a trend from declining to increasing, then falling again. Among these years, the top imports in 2017 were 287 200 tons, occupying about 12.49 percent of total imports. The minimum imports in 2018 were 158 100 tons, accounting for 7.88 percent of the total, 44.95 percent lower than the last year. The imports in 2021 were 191 900 tons, 10.46 percent of the total, 16.93 percent lower than a year earlier.

2. Importing sources

From 2017 to 2020, Chinese natural rubber was mainly imported from three countries Thailand, Malaysia, and Indonesia. While in 2021, the three primary importing sources were Thailand, Malaysia, and C?te d'Ivoire, with combined imports reaching 1 331 700 tons, accounting for 72.56 percent of the total imports, up 29.82 percent year-on-year.

3. Importing provinces and cities

In 2017, the imports of Chinese natural rubber focused on three provinces, Shandong, Yunnan, and Jiangsu. But after 2018, the three main regions changed to Shandong, Yunnan, and Zhejiang. Main importing provinces and cities of Chinese natural rubber from 2017 to 2021 are shown in Table 2.

4. Import trading form

From 2017 to 2021, the most used trading form was processing with imported materials. And the imports witnessed the tendency of rising initially and declining late, then growing again. The imports in 2017 were 898 800 tons, accounting for around 39.09 percent. And the imports in 2021 were 928 500 tons, representing about 50.59 percent of the total imports, with a year-on-year growth of 11.59 percent approximately. 

Analysis on imported compound rubber

1. Changes of import volume

From 2017 to 2021, the imports of Chinese compound rubber (including unvulcanized compound rubber mixed with carbon black, unvulcanized compound rubber plates, sheets and belts, and unvulcanized compound rubber in primary forms, compound rubber solution, and dispersion) showed a trend of falling for consecutive years in the beginning and then increasing. Among these years, the top imports in 2017 were 119 900 tons while imports of 2021 was 76 800 tons, an increase of 14.8 percent compared with the minimum imports in 2020. The import volume changes of compound rubber are shown in picture 2.

Pic 2 Import volume changes of compound rubber during 2017-2021

2. Importing sources

In 2017, China imported compound rubber mainly from 4 countries and regions Thailand, Japan, Taiwan of China, and Indonesia, with combined imports reaching 65 200 tons, accounting for about 54.38 percent of total imports. In 2021, the main sources turned to Thailand, Taiwan of China, Japan, and Korea, with combined imports of 42 200 tons, accounting for 54.95 percent of imports, attaining a year-on-year growth of 1.69 percent.

From 2017 to 2021, Thailand was the biggest importing source of Chinese compound rubber, and the imports tended to decline for consecutive years. Among these years, the imports in 2017 were 27 500 tons, accounting for 22.94 percent of total imports. The imports in 2021 were 13 300 tons, taking up 17.32 percent of total imports, 12.50 percent lower than a year earlier.

3. Import trading form

From 2017 to 2021, Chinese compound rubber import forms mainly focused on general trade and processing with imported materials. During these years, the imports in 2017 amounted to 114 500 tons, accounting for about 95.50 percent of total imports. The aggregate imports in 2021 were 70 700 tons, making up about 92.06 percent of total imports, 12.94 percent higher than the last year.

General trade was the most popular import form from 2017 to 2021. And imports tended to increase in the beginning, decrease for consecutive years, and then mounted again. The imports in 2017 were 90 000 tons, making up 75.06 percent of total imports, while in 2021, the imports were 54 200 tons, accounting for 70.57 percent of total imports, 5.45 percent higher than the last year.

In summary, the imports of Chinese natural rubber took on the trend of dropping first and then increasing. Technically specified rubber took the lead. And natural rubber was mainly imported from Southeast Asian countries, such as Thailand, Indonesia, and Malaysia. Moreover, the imports from C?te d'Ivoire improved sharply. The regions needing imports mainly focused on the provinces of Shandong, Yunnan, Jiangsu, and other cities. Most of forms were general trade, processing with imported material, and logistics of special customs supervision areas.

The imports of Chinese compound rubber from 2017 to 2021 showed the trend of declining initially, followed by growth. The leading import variety was unvulcanized compound rubber mixed with carbon black. Imports were mainly from Thailand, Japan, Indonesia, and Taiwan of China. The regions which needed imports focused on the provinces of Jiangsu, Guangdong, and Liaoning and the cities of Shanghai and Beijing. The primary trade forms were general trade and processing with imported material.

With the advancement of national overall security strategy and the Belt and Road, Chinese demand for natural rubber, a strategic material widely used in the national defense and military industry, will mount gradually. However, due to small tropical areas and undistinguished natural conditions, there is little room for promoting crude rubber production. Therefore, import is still the main channel to meet the requirement of Chinese natural rubber. With sound production volume and process improvement, the imports of Chinese natural and compound rubber are expected to decrease gradually in a particular time. But the distribution of the imports will not significantly change.