Here is a bit of relevant news that might affect CHRB's prospects
in the near term.Courtsey to Douglas Grier, one of the participants
here on the board, who sent this to me.Thanks Douglas.
Dow Jones Business News -- February 12, 1997
China Rubber Glut Seen Pressuring '97
Prices Lower - Report
AP-Dow Jones News Service
BEIJING -- Weak domestic rubber demand will depress domestic
prices further in 1997, following a sharp plunge last year, the China Daily reported Wednesday.
Although domestic production is pegged at 1.05 million tons, last
year's inventories and imports are expected to contribute to a market glut.
The oversupply will push domestic prices under the average of about
13,000 yuan a ton last year, the China Daily reported. Prices reached record highs of 18,000 yuan in 1995 and 1994.
Total rubber demand in 1997 is estimated to increase 5% to 1.47
million tons, the official newspaper reported, citing industry experts and government officials.
According to the newspaper report, total rubber supply surged
22.6% last year to 1.89 million tons while consumption grew 7% to
1.4 million tons.
While imports have accounted for about half of China's annual
consumption in the past, that amount may decline slightly this year
because of the domestic glut, said Chen Guoying, secretary general
of the Chinese Rubber Industry Association.
Imports in 1996 jumped 45.1% to 917,000 tons, mainly due to falling
international prices.
Other unnamed experts predicted that China's rubber imports would
remain relatively stable because of cheap prices.
China is one of the world's top four rubber consumers, but a sluggish automobile industry has caused a slump in tire production - the main component of domestic rubber consumption.
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