Compound rubber imports set to soar

China, the world's largest rubber consumer, is expected to import 950,000 tons of compound rubber this year, a surge of nearly 71 percent from last year, an industry report said yesterday.

Compound rubber contains 99 percent natural rubber and although prices are a few cents higher, it only attracts a 5-percent import duty in China versus up to 20 percent for natural rubber.

"Compound rubber import volume was increasing in recent years because the Customs tax was lower than (that on) natural rubber," China's Rubber Research Institute said in a report prepared for an international conference in Ho Chi Minh City, Vietnam.