Rubber Consumption to Grow 10% in 2006 is expected to consume
more than 5.5 million tons of rubber in 2006, an increase of over
10 percent year on year, the International Business Daily
reported.
The newspaper, which is affiliated to Chinese Ministry of
Commerce, based the estimate on China's fast economic growth,
and the huge amount of China's rubber-related exports.
Increasing infrastructure construction, accelerated
industrialization, the improvement of people's living standards and
more vehicle purchases have led to the continuous growth of China's
rubber consumption in recent years, and the momentum will carry
over into 2006, the newspaper said.
It expected China's rubber output in 2006 to grow more than 5
percent to 2.3 million tons, 1.7 million of which will be synthetic
rubber.
In 2006, China will import at least 3 million tons of rubber, an
increase of 20 percent over 2005, it said, predicting a continued
high rubber prices in 2006.
The domestic rubber price could still drop during the year if
China lowers the rubber import tariff, or if the international
crude oil price falls considerably, it said.
If the Renminbi appreciates further, rubber import costs will go
down, which will also lead to lower rubber prices in China, the
newspaper said.
(Xinhua News Agency January 6, 2006)