Although the increase in raw material prices and the reduction in export tax rebate rates have put pressure on the industry's profitability, the rubber hose and belt sector experienced a significant rise in output and economic performance last year. This growth was largely driven by the development of related domestic industries. Industry leaders remain optimistic about continued market growth this year. However, during the Third China Large-Scale Enterprise Summit held last week, executives from major domestic companies expressed concerns. While 2008 showed clear signs of market expansion, they emphasized that high costs and various risks still pose challenges. Market irregularities persist, prompting industry leaders to call for more sustainable development.
In response, top executives from large rubber belt companies proposed strategies focusing on new product development, industry self-regulation, and brand building. These measures aim to ensure long-term stability and growth. The rubber hose and belt industry, though not a massive sector, serves critical industries such as steel, coal, cement, electricity, ports, construction materials, and automobiles. With China’s rapid economic growth, demand for these key sectors has created favorable opportunities for the rubber pipe and belt industry.
According to Li Hong, secretary general of the China Rubber Industry Association, last year’s production of conveyor belts reached 180 million square meters, up 42.96% compared to the previous year. Hose production increased by 22.35% to 105 million standard meters, while transmission belts rose by 62.1% to 1.12 billion A meters. Internationally, exports also saw strong growth, with conveyor belt exports increasing by 47.31% to 19.915 million square meters, hose exports rising 12.94% to 14,544,500 standard meters, and V-belt exports growing by 49.05% to 198 million A meters.
Looking ahead, the market is expected to remain positive. Steel consumption is projected to grow by 12%, power generation capacity will expand by 85 million kilowatts (an 11.8% increase), coal demand is expected to reach 2.74 billion tons, and cement output will grow between 11% and 13%. With 10 million new vehicles expected to be produced, the total number of vehicles will reach 50 million. Based on these trends, the China Rubber Association predicts that conveyor belt output will reach 230 million square meters, V-belt output will hit 1.5 billion A meters, and hose output will reach 620 million standard meters. Vehicle hose demand is expected to exceed 250 million standard meters.
Despite this optimism, industry leaders face significant challenges. Raw material costs have surged, with oil price increases driving up the cost of synthetic rubber, carbon black, fabric cords, and chemicals. Natural rubber prices remain high, and steel cord prices have risen by 5,000 to 6,000 yuan per ton. Additionally, the lower export tax rebate rate has reduced profit margins, and RMB appreciation adds further pressure. Labor costs have also risen due to the implementation of the "Labor Contract Law," with some companies reporting a 10% increase in per capita costs.
Market regulation and self-discipline are also key concerns. While large companies have started to act responsibly, the entry of many new players has led to uneven product quality and intense competition. Some companies even offer products at unreasonably low prices, which do not cover material costs. This undermines quality and efficiency, creating an unstable environment.
To address these issues, industry leaders are pushing for stronger self-regulation and brand development. Meng Fanyou of Fuxin Huanyu suggested that industry associations should publish cost data to help both new entrants and users make informed decisions. Feng Weimin of Shanxi Fenghuang Adhesive Tape proposed fairer recommendations for quality products to regulate the market effectively.
Wang Weiqin of Yinhe Depu emphasized innovation, suggesting the development of high-value products like low-wear, high-strength, tubular, and flame-retardant conveyor belts. He also recommended improving customer service and enhancing communication with design agencies to optimize usage and reduce resource consumption.
Brand building remains a top priority. Companies like Zhejiang Sanlux, Guizhou Dazhong, Zhejiang Shuangjian, Qingdao Oak Group, Fuxin Huanyu, Wuxi Baotong, and Anhui Zhongyi have already established strong brand recognition, boosting both visibility and trust. Shen Shuliang of Zhejiang Shuangjian emphasized that brand promotion is crucial for the industry’s future.
Fan Rende of the China Rubber Industry Association also highlighted the need for improved quality credit systems to enhance product standards, reduce counterfeit goods, and protect consumer rights. Overall, the industry is moving toward a more sustainable and regulated path, with a focus on innovation, quality, and long-term growth.
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