New China rubber standard likely to hurt major producers in Malaysia, Thailand

BEIJING: China has approved a new standard for compound rubber that cuts the amount of natural rubber allowed in the formula, a move that is expected hurt major producers in Thailand and Malaysia, analysts and traders said.

Compound rubber, which includes small amounts of powdered carbon, has become popular in China as it can be imported tariff-free, compared with a 1,500 yuan (US$242) per tonne tariff for natural rubber.