Thai Rubber Development Plan for the Next 20-Year Is On The Way

Recently, Toyo Tire & Rubber has developed a non-pneumatic tire, which can effectively reduce the noise, with good durability, safety, etc. Toyo Tire & Rubber said the non-pneumatic tire was named as “noair”, and it will be oriented towards regular passenger cars. The tire outside was made of rubber, and the inner core adopted carbon fiber reinforced composite. There were still some room for improvement in noise, comfortable sensation, etc. The company will focus on these issues for technical research and development.

On September 9, Director of Rubber Authority of Thailand (RAOT) said that the RAOT would conduct a final review of a draft for the 20-year Thailand rubber industry development. If the draft is passed, it will become the first Thai national rubber development plan. Thus, the rubber consumption in Thailand may be stimulated, and the rubber farmers’ income will be improved.

The 20-year Thai national rubber development plan sets the prospect of the rubber industry development, which is that Thailand will become the world’s largest country in rubber planting, processing and exporting. Thailand wants to purse a decisive role and authorities in the international rubber market. Besides, the rubber consumption volume in Thailand will take 30% of the total rubber output, and the current proportion is 14%. The annual export value of both rubber feedstock and rubber products will reach 800 billion THB. The foreign investment value attracted to the Thai rubber industry will reach 2 billion USD per year.

The 20-year Thai national rubber development plan can be divided into four stages, and every stage contains five years. In the first stage of plan, the key objective is to improve the rubber output and the production efficiency. In the second stage of the plan, the goal is to develop and explore both the Thailand and international rubber markets. In the third stage, innovation and research in the rubber related industry needs to be promoted with great effort. In the last stage, the aim set in the national rubber development plan is to improve the management capabilities in the all-round rubber industry. Make Thailand become the world’s largest country in rubber planting, processing and exporting is the final target in the plan.

The draft of the plan includes 5 strategies and 19 tactics, mainly for stimulating the rubber consumption volume in Thailand, improving the rubber prices, strengthening rubber farmers’ operation, and cultivating Smart Farmers. By cooperating with the international research institutes, the Thai rubber players can strengthen scientific innovation and develop high value-added products.

China’s synthetic rubber prices noticeably increased in Q3 of 2017. The Y-O-Y change in apparent consumption volume of styrene butadiene rubber (SBR) and polybutadiene in January–July 2017 will be shown as follows.

Overall, China’s SBR and polybutadiene industries improved from 2013. In January–July 2017, the apparent consumption volume of SBR (including emulsion styrene butadiene rubber (ESBR) and solution styrene butadiene rubber (SSBR)) was 835kt, up 6.4% Y-O-Y. Although the growth rate was slower than that in 2016, the market performed the best during this period from 2013. In the same time, the apparent consumption volume of polybutadiene (including high-cis polybutadiene (HCBR) and low-cis polybutadiene (LCBR)) was 647kt, up 3% Y-O-Y. The growth rate was faster than that in 2016.

As for the ESBR industry, the operating rate in January–August was 57.5%, up 3.5% Y-O-Y. Hereinto, the monthly operating rate for April reached a high level at 65%. According to SCI, major suppliers had finished the overhauls. Thus, the monthly operating rate in Q4 of 2017 is estimated to be 65% or above.

As for the HCBR industry, the operating rate in January–August was 53.9%, up 9% Y-O-Y. On the one hand, the unit at Sinopec Shanghai Gaoqiao Company was eliminated. On the other hand, Sinopec Beijing Yanshan Company cut the production, due to environmental protection; units at Huayu Rubber, PetroChina Dushanzi Petrochemical and Shandong Wanda Chemical had shutdowns. But the operating rates at Sinopec Yangzi Petrochemical and Sinopec Maoming Company greatly increased from last year, and those at some private producers went up. Thus, monthly operating rate in Q4 of 2017 is expected to approach 60%.

All in all, the apparent consumption volume of SBR may stay at the same level as that in 2016. That of polybutadiene may rise by 3%–5%. The overall industrial performance will keep improving from 2014–2015.