With the rapid increase of domestic market demand for silica gel parts, China has become the world's consumption center of silica gel parts, and the main foreign countries and regions producing silica gel parts will also increase their efforts to expand the Chinese market. The production capacity of silica gel spare parts in China's neighboring countries Japan and Russia has exceeded 1 million tons per year, while the silica gel spare parts industry in South Korea, Taiwan and Southeast Asia is also developing rapidly. Silicone parts in our country, meanwhile, the main varieties, butadiene rubber (BR) have been able to meet the domestic demand, styrene-butadiene rubber (SBR) device construction is accelerated, the next few years are also likely to excess in recent years the domestic enterprise to import the silicone parts counter pin case continue to increase, the predictor for future domestic silicone parts will be increasingly fierce market competition. China's silica gel spare parts industry has four competitive advantages. The healthy development of silica gel parts industry depends on constantly accelerating its own technological progress and strengthening the development of high-performance product varieties. At present, the competitive advantages of China's synthetic rubber industry lie in:

1. Have certain core technology support. Has built in China, including seven basic analysing relatively complete product system, which has strong core technical support of soluble poly (styrene butadiene rubber (SSBR), thermoplastic styrene-butadiene rubber (SBS) and butadiene rubber (BR) and other products in the domestic market share is higher, and can timely along with the development of the market capacity expansion ability, is conducive to further expand the market share. Ethylene-propylene rubber (EPR), nitrile rubber (NBR) and butyl rubber (IIR) and other products introduced technology construction equipment, products have entered the market smoothly, and in the device capacity and product brand has certain development, for the future further expansion of capacity to lay a market and technology foundation.

There is a huge market demand in our country. The investment core of the world rubber industry has shifted to developing countries, especially China, which is becoming the manufacturing and processing base of the world tire and rubber products and the core area of the world silicone parts market competition.

3, domestic natural rubber resources are insufficient. China's natural rubber has long been in short supply, the import volume rose from 850,000 tons in 2000 to more than 1.6 million tons in 2007, increasing the degree of external dependence. Improving the proportion of silica gel parts has become an important way to solve the problem of shortage of natural rubber. Some silica gel parts that can partially or completely replace natural rubber will have a larger market.

4, butadiene and other raw materials in sufficient supply. The main raw materials for the production of synthetic rubber are butadiene and styrene and certain quantities of isobutene, acrylonitrile, ethylene, propylene, isoprene and chlorbutadiene. The continuous and rapid development of ethylene industry in China will provide sufficient butadiene resources for synthetic rubber industry. With a number of newly built and expanded ethylene plants in China have been put into operation, the supply of raw material butadiene will be greatly improved, the net import of butadiene in China decreased from 155,000 tons in 2004 to 86,000 tons in 2007, and the self-sufficiency rate increased from 82% in 2004 to 95% in 2007. In the next few years, the amount of butadiene resources will no longer be the main factor restricting the development of silica gel parts. In addition, China's styrene production capacity in 2010 will reach about 6 million tons/year, while the demand for the same period is about 5.8 million tons, the contradiction between supply and demand will be basically solved. The long-term utilization of isoprene and isobutene as low-cost fuels in ethylene plant by-products will gradually change from a technical or investment perspective. In 2010, the resource of isoprene in carbon 5 coproduced by ethylene plant in China reached more than 300,000 tons. The comprehensive utilization of carbon 5 resources and the development of isoprene rubber have attracted more and more attention in the industry. The supply and demand of acrylonitrile and chlorbutadiene raw materials will also improve.

5. Changes in import markets and downstream industries affect development. Producers from neighboring countries and regions are pouring in. China's surrounding Russia, South Korea, Japan and China's Taiwan silicone parts production capacity is mostly surplus, will accelerate the influx into the domestic market. With the further opening of China's market, foreign manufacturers have obtained the distribution right to sell their products in China, and can directly set up trade organizations and distribution systems to further reduce the circulation cost of imported products and reduce the price of imported products. In addition, foreign investors can also rely on its higher management level, mature marketing means to operate products, so the direct competition with domestic manufacturers in all aspects of the market will be more intense. Some rubber varieties in China lack core technology. There are still some rubber brands in China that lack the support of their own core technologies. The expansion of production capacity of these varieties is still restricted by the high input of imported technologies and equipment, which will aggravate the uncertainty of investment and increase risks. Rubber downstream market is facing international competition pressure. In China's synthetic rubber imports, to feed processing trade accounted for more than 50%. In recent years, the rise of rubber industry in India, Brazil and other developing countries has brought great pressure to the export of rubber products in China. Compared with foreign products, whether domestic products are competitive in terms of quality, market services and cost and price are the variable factors for China to maintain the growth of rubber exports and the expansion of synthetic rubber production capacity. Downstream industrial structure adjustment affects industry development. At present, the capital structure and product structure of domestic rubber processing enterprises are undergoing significant changes, among which the share of foreign holding or wholly owned enterprises is further rising: On the one hand, the car radial tire market with a high proportion of synthetic rubber, 70% of the output is owned by foreign-owned or foreign-owned enterprises. The domestic synthetic rubber entering foreign-owned tire enterprises is restricted by a variety of factors such as technical standards and usage habits. On the other hand, the traditional downstream market of domestic synthetic rubber is load skew tire, which is accelerating to all steel load radial tire structure adjustment, and has been a large number of BR and SBR tread rubber, most will be changed to natural rubber, is bound to intensify the domestic natural rubber supply and demand contradiction. What kind of synthetic rubber is used to produce tread rubber for all-steel radial tire and how domestic synthetic rubber can continue to occupy this part of the market have become a major concern of rubber processing enterprises and silica gel spare parts manufacturers.