China, the world's largest rubber consumer and importer, will continue to see double-digit annual growth in rubber consumption and imports through 2010, as strong growth in tyre exports outpaces moderate gains in domestic rubber output, a senior industry official said on Tuesday.
Rubber consumption will grow by 12 percent in both 2007 and 2008, but will slow to 10 percent growth in both 2009 and 2010, Fan Render, vice chairman of the China Rubber Industry Association (CRIA) told a conference. "The development of the automobile industry will be the major driver for the growth," Fan said at the rubber conference, which was organised by the association.
Chinese production of tyres, especially of radial tyres, has grown by more than 20 percent per year over the past few years. Tyres account for 60 percent of the rubber consumption. Tyre production is expected to grow by about 15 percent in 2007 and 2008, slowing to 10 percent in 2009 and 2010, Fan said.
China is expected to consume 5.05 million tonnes of rubber in 2007, including 2.35 million tonnes of natural rubber and 2.7 million tonnes of synthetic rubber, Fan said. China's rubber consumption could reach 6.83 million tonnes in 2010, including 3.18 million tonnes of natural rubber and 3.65 million tonnes of synthetic rubber, he said.
It will need to import more rubber to meet the demand growth because of lower domestic production, Fan said. Domestic natural rubber production was forecast to rise by merely 2 percent in 2007 to 600,000 tonnes and to reach 780,000 tonnes by 2010. "China's reliance on the world market for natural rubber will become heavier and heavier," he said. China was expected to import 1.75 million tonnes of natural rubber in 2007, up from 1.61 million tonnes in 2006.
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