Lately, the strict environmental investigation in the localities has come to an end and producers of rubber powder and reclaimed rubber started production again in succession.
However, the production in the scrap tire market is limited after the resumption of work and steady is the key tone of the market price.
Industry insiders expect that the sentiment of the scrap tire market will increase later.
Sun Xiaoye, an analyst with SC199.com, said since March, the localities launched strict environmental investigations one after other.
In March, Chongqing municipal government asked local industrial parks of reclaimed rubber to move away, and local producers haven’t resume production so far.
In April, the World Horticultural Exhibitions were held in Tangshan, Hebei province. Half a month before the event, local government asked the producers of rubber powder and reclaimed rubber to stop production.
In May, the producers of rubber powder and reclaimed rubber in Heze, Shandong province, and Fuyang, Henan province, stopped production because of strict environmental investigation.
In June, the “poisonous track” event reported by China Central Television caused significant impact on the scrap tire market. The rubber particle market was hit strongly and the capacity utilization plunged to less than 20%.
In July, the scrap markets in Jiangsu, Henan, and Hebei provinces kept weak because of investigation by the environmental investigation team from the central government.
In Henan province, because of the arrears of the producers and a traditional weak season, the producers of rubber powder and reclaimed rubber either stopped production or closed down from July to late-Aug.
The phenomenon continued until Aug. 15 when the environmental investigation team left and producers resumed production. But the scrap tire market’s overall output has been limited.
Sun analyzed that by the end of Aug. the strict environmental investigation came to an end and producers resumed work in succession, and the sales were good in spite of limited output.
In Sep., it is cooler in the morning and the evening, which makes it easier for producers of rubber powder and reclaimed rubber to product at night, and the weak season of reclaimed rubber will be ended in autumn.
SC199.com predicts that as scrap tires increase, the prices may grow, and the scrap tire market is likely to rise later.
