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Chinese Synthetic Rubber Technology "Stand Alone"
The implementation of the European Union’s "Tire Labeling Act" has significantly increased production costs for domestic tire manufacturers, making it harder for Chinese tires to compete in the EU market. This is a well-known challenge in the industry.
According to a tire technician, the main reason behind the rising costs lies in the need for higher-quality raw materials. “It's like trying to make good clothes from rags,†he explained. “The quality of the raw materials directly determines the final product’s performance.â€
Rubber is the key ingredient in tire manufacturing, with natural rubber, styrene-butadiene rubber, and butadiene rubber serving as the primary components. The quality of these “materials†ultimately defines the quality of the final product — the tire.
Currently, China’s synthetic rubber technology is still largely dependent on imported processes. Most new projects are based on existing domestic equipment, without significant innovation or advanced technologies. For instance, domestic butyl rubber production lags by over 50 years compared to multinational companies. There are also major gaps in technical expertise and operational experience.
Even though some companies have adopted foreign technologies from Italy and Russia, this only brings them up to the global average level. “The production process isn’t advanced, so the product quality remains at a low end,†one technician noted. “At this stage, the development of synthetic rubber technology is lagging behind the tire industry, and upgrading is urgently needed.â€
This gap has forced many companies to rely on imported synthetic rubber to meet EU labeling standards, which comes at a high cost. “We have no choice but to buy foreign products, and there’s very little room for negotiation,†said a company representative. “Using domestic styrene-butadiene rubber could result in tires that don’t meet EU requirements.â€
For example, the price of solution polybutadiene rubber from Japan, South Korea, and the U.S. averages around 30,000 yuan per ton, while domestic alternatives are priced at about 20,000 yuan per ton. Though cheaper, the domestic version lacks the performance needed for high-standard tires.
Some experts suggest that while the quality gap can be addressed through formulation adjustments, it often requires expensive additives like advanced silane coupling agents, which increase overall costs.
Industry analysts believe that the push for “green tires†will accelerate the need for synthetic rubber upgrades. As tire technology evolves, domestic producers must take the initiative to innovate and adapt to market demands.
Xiong Yunjun, head of the Tire Marketing Department, believes that while synthetic rubber development may lag in the short term, the growing maturity of green tire technology will eventually lead to improvement. “The current cost issue will gradually ease as the industry moves forward,†he said.
In conclusion, the industry agrees that improving synthetic rubber technology is essential to addressing the rising costs and enhancing competitiveness in international markets.