QINGDAO, China--(Business Wire)--Following the listing of the Natural Rubber TSR 20 (Rubber Valley), the BOCE-Rubber Valley Natural Rubber Exchange welcomed in a new member, the RSS 3 (Rubber Valley). The Listing Ceremony of RSS 3 at Qingdao Shangri-La Hotel at 9 o’clock on November 27, 2013 marked the realization of spot trading of the two major products of natural rubber, thus fulfilling the the trading blank of the rubber industry.
Xu WenYing, Vice President and Secretary-General of China Rubber Industry Association, together with officials of relevant departments, representatives from Southeast Asia, upstream and downstream enterprises of rubber industry attended the ceremony. After the ceremony, guests joined the Rubber Valley Natural Rubber Forum with “Cooperative and Win-Win, Sustainable Development” being its topic. The keynote speech of “Innovation and Practice of Natural Rubber Business Model”, presented an in-depth analysis of the current situation and challenges of the natural rubber industry with its causes being explored. At the forum, the Rubber Valley standpoint of focusing on the common goal, integrating industrial resources, innovating business model was put forth, with an introduction of the Rubber Valley business model featured by “circulation mode optimization, pricing mechanism perfection and three markets interaction”.
Xu Wenying, Vice President and Secretary-General of China Rubber Industry Association, said that the prices of natural rubber have fluctuated irrationally in recent years and affected the development pace of the domestic rubber industry. The industry has entered into critical moment of transformation and upgrading, and cooperation and win-win between industry enterprises has become the route one must take. Currently, Rubber Valley has made useful exploration and practice in innovating business model and promoting synergetic development of the rubber industry. The listing of the RSS is bound to reverse the poor circulation of RSS entity trading, bringing about a brand new solution for the sustainable and steady operation for business enterprises of the industry.
Zheng Yu, deputy GM of BOCE, said the listing of RSS (Rubber Valley) on the Exchange would become a new milestone of rubber industry. He also added: “As the second in-depth cooperation between BOCE and Rubber Valley, the listing of RSS (Rubber Valley) will continually adhere to the modern spot market’s operation concept of further strengthening of the resource integration, optimization of the rubber industrial layout to enhance the sustainable and sound development of rubber industry. He also noted that, BOCE is now providing a new channel for rubber trading to be inline with international practices---the RMB cross-border transaction settlement. As the first non-bank agency to offer this settlement service, BOCE has adopted the international strategy to simplify the trade facilitation, reduce international trade settlement costs, resist the interest rate & exchange risk, accelerate the operating efficiency and increase fund utilization rate for servicing enterprises of the rubber industry.
According to Zhang Yan, CEO of Rubber Valley, based on the special historical period of industrial development, in line with the purpose of serving the rubber industry and promoting the cooperative & win-win and sustainable development, Rubber Valley has carried out active explorations and practices, summarized and put forth the Rubber Valley viewpoint of “Focusing on common goal, integrating industrial resources and innovating new business model” and Rubber Valley Business Model Solution of “circulation mode optimization, pricing mechanism perfection and Three markets interaction”. He also added that guided by government, led by industrial association, and supported by BOCE and industrial clients, BOCE-Rubber Valley Natural Rubber Exchange was successfully launched on July 8, 2013. Over the past four months, the first product Natural Rubber (Rubber Valley) – TSR 20 has been listed on the Exchange. There have been fully approvals and supports from rubber industry. The aggregate transaction value exceeds RMB 170 billion, while the delivery volume exceeds 20,000 tons, initially realizing the expected results and value. The RSS (Rubber Valley) listed today has attracted great attention and aroused high expectation even during its project research period. Along with the listing of the RSS, it will further regulate the trading order, optimize the circulation method and improve the pricing mechanism of natural rubber, and enhance the comprehensive operation level of rubber industry.” Zhang Yan added.
The concept, viewpoint and business model solution proposed by Rubber Valley was fully acknowledged by the guests presented . The guests fully recognized the results and contribution achieved by BOCE-Rubber Valley Natural Rubber Exchange. Meanwhile, the industrial representatives wished a sustainable development of the Exchange so as to promote the steady transformation and upgrading of rubber industry.
It is reported that, by November 27, 2013, the first day of RSS (Rubber Valley) listing, the transaction volume of RSS (Rubber Valley) has already reached 63,888 tons with trading value of RMB 963 million, while the total trading volume of natural rubber exchange reached 11,926,408 tons and with a trading value of RMB 174.617 billion respectively.
