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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 Chinese tire manufacturers, putting them at a disadvantage in the EU market. This is a widely recognized issue.
According to a tire industry expert, the main reason behind the rising costs is 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 affects the final product.â€
Rubber is the primary component in tire manufacturing. Natural rubber, styrene-butadiene rubber (SBR), and butadiene rubber—these are the "fabrics" that determine the quality of the "clothes" we call tires. However, China's synthetic rubber technology still lags behind global standards, making it difficult to meet international requirements.
Currently, many new domestic projects for butadiene rubber and SBR are based on outdated or copied technologies, with little innovation in processes or product varieties. For example, China's butyl rubber production is over 50 years behind multinational companies, and there are significant gaps in both technology and operational experience. Although some domestic firms have adopted Italian and Russian technologies, this only brings them up to the world’s average level.
"The production process isn’t advanced enough, so the product performance remains at a low end," said one tire technician. "At this stage, China’s synthetic rubber technology is not keeping up with the development of the tire industry. Upgrading is now urgent."
To meet the EU labeling regulations, many companies have had to rely on imported synthetic rubber, which is expensive and leaves little room for negotiation. A tire company employee admitted, “We have no choice but to use foreign products, and we can't bargain much on price.†He added, “If we use domestic SBR, the tire quality might not even meet EU standards.â€
For instance, when it comes to polybutadiene rubber, Japanese, South Korean, and U.S. products are of higher quality, with an average price of around 30,000 yuan per ton, compared to about 20,000 yuan for domestic alternatives. The price gap is clear.
Some insiders suggest that while the difference in raw material quality can be compensated for through formula adjustments, it often requires additional high-quality additives, such as novel silane coupling agents. These can increase costs significantly.
With the growing demand for "green" tires, the pressure on synthetic rubber technology is increasing. Industry analysts believe that the development of tire technology will force the synthetic rubber sector to catch up. Domestic manufacturers should also take the initiative to introduce, absorb, and innovate new products to better meet market needs.
Xiong Yunjun, head of the Tire Marketing Department, noted, “In the short term, synthetic rubber development may lag behind tire technology. But with the maturation of green tire technology, China’s synthetic rubber industry will eventually align with the trend. The current cost issues will gradually be resolved.â€
Industry experts agree that improving synthetic rubber technology is essential. It’s not just about solving cost problems—it’s about ensuring long-term competitiveness in the global market.