Should waste tires be recycled or not?

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In the two sessions, Jia Kang, director of the National Committee of the Chinese People's Political Consultative Conference and the Institute of Fiscal Science of the Ministry of Finance, stated in his two-party proposal that with the rapid development of China's auto industry, the comprehensive utilization of waste rubber represented by end-of-life vehicle tires has become an important development of the reclaimed rubber industry. direction. Moderately loosened restrictions on the import of used tires, using foreign sources of supply, and actively promoted regular enterprises to obtain used tire raw materials matching the production capacity at a low price, and operate normally and stably.

Cao Qingxin, secretary-general of the Waste Rubber Comprehensive Utilization Subcommittee of the China Rubber Association, said that the proposal evaded the growing status of China’s existing waste tire production and did not meet China’s national conditions.

Coincidentally, on the "two sessions" in 2010 and 2011, Ding Yuhua, chairman of the Triangle Group Co., Ltd., which proposed the inclusion of used tires in the list of banned imports, stressed: "Companies engaged in the recycling of waste tires should use domestic waste tires as sources. "And pointed out: The "Guidelines for the Comprehensive Utilization of Waste Tires" promulgated at the end of 2010 made it clear that it was necessary to "build and standardize waste tire recycling systems", and "Importantly import illegal tires in disguised form".

One economist and two industry experts, from the perspective of “authority” called for from different angles, are diametrically opposed. Whose views are closer to the facts, whose views are more in line with market needs?

In fact, carefully reading the proposals of the three parties may seem to explain the fact behind them.

Jia Kang’s viewpoint is based on the fact that China’s natural rubber is highly dependent on foreign countries, and domestic rubber production grows slowly to ensure that the rubber industry maintains rapid and stable development. At the same time, his statement also revealed a hidden problem in the industry:

The formal rubber production enterprises that use waste tires as raw materials have insufficient supply of raw materials and the acquisition cost is high. In other words, as Jia Kang mentioned in his speech, "China's used tires are recovered through formal channels less than 50%, and more than 90% of used tires come from private individuals." The waste tires collected through formal channels can form an effective return-to-recycle, and individual acquisitions are very likely to breed the black industrial chain of used tires.

Cao Qingxin's point of view is that the amount of domestic automobile waste tires, even if they can not meet the consumer demand of the rubber market, but in the long run should present a situation where supply exceeds demand.

However, I would like to raise some questions here. Is it true that all waste tire production can be effectively converted into raw materials for recycling in the rubber market? Will the growth of domestic waste tire production lead to more “small workshops” and “black dens”? .

Ding Yuhua called for the use of used tires to digest domestic production and build a standard waste tire recycling system.

The author can not help but ask: "Whether it is possible to understand the current system has many problems when it comes to building a standardized waste tire recycling system.

The above remarks just want to express: The key to whether or not the import policy is to be liberalized is to see whether the waste tire resources can meet the demand for normal renewable development of the rubber industry. Before market supervision is in place and no standardized recycling system has been established. It is difficult to establish a proportional relationship between the volume of imported tires and their own production. Only clear the market, find out the true supply and demand status of scrap tires. Under the background of a steady increase in domestic production, even if it is to liberalize imports, it will not appear so terrible. We must fully believe in the resource allocation rules of the market mechanism.

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