Natural rubber tax cuts or symbolic meaning

The day before, by the Tariff Commission of the State Council, and approved by the State Council, since January 1, 2013, China will make some adjustments to the import and export tariff. Among them, the natural rubber import tariff proposal: latex 10% provisional tax rate or 720 yuan / ton, both from the low smoke film and technology; classification of natural rubber is 20% or 1200 yuan / ton, both from the low.

Will the downstream enterprises, with natural rubber as the main raw material, benefit from it?

Little impact on downstream enterprises

The tax cuts had little impact on tyre companies." A large domestic rubber tire enterprise procurement staff revealed that the tire enterprises are using composite adhesive glue, because the tariff is zero, in contrast, the price of imported rubber is still relatively high.

The so-called composite refers to natural rubber content in 95%-99.5%, and add a small amount of stearic acid, styrene butadiene rubber, butadiene rubber, isoprene rubber, carbon black, Zinc Oxide or peptizer, by mixing and compounding rubber.

According to the tariff implementing plan issued by the Ministry of Finance in 2009, the domestic tariff on the composite rubber of ASEAN countries has been reduced in different ways. Among them, Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Kampuchea, Laos and Burma agreed to tax rates from 5% to 0%, while Vietnam remained at 5%.

An industry insider said that after the adjustment of the amount of tax and the composite rubber Zero Tariff compared to the gap is still great, therefore, enterprises will still mainly choose imported composite rubber. As for the use of raw rubber, most enterprises rely on export verification and use of home-made glue to reduce costs.

The industry also said that, in fact, the domestic use of imported natural rubber enterprises in other industries, but also the use of verification methods, and therefore, in fact, the actual amount of natural rubber involved in very few.

Natural rubber futures did not fluctuate significantly

"Natural rubber import tariff reduction, in theory, for the futures market is bad news, but there is no significant fluctuations in the disk."." CSI futures Rubber Research Institute researcher Liu Bin said.

In December 18th, HuJiao closing: 1301 main contract closed at 24565 yuan / ton, up 20 yuan / ton; 1305 contract closed at 25290 yuan / ton, up 35 yuan / ton; 1309 contract closed at 25090 yuan / ton, up 145 yuan / ton. The futures market barely responded to the new deal.

The broad way rubber Information Analyst Xie Lingzhi said that in addition to the macro economy was not good news for pulling, the recent natural rubber spot market shipment is not positive, does not constitute a strong support of the futures market, so the recent HuJiao operation remains low. In addition, the futures market has been on the bad news of tax reduction "digest", which also led to limited futures market reaction.

Industry consensus view is that natural rubber import tariff decline can be seen, the impact of domestic futures delivery subject - Thailand three cigarette adhesive delivery costs have been reduced. But because the tariff reduction is small, its symbolic significance or greater than practical significance.

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