In 2017, materials including rubber chemicals and carbon black saw a sharp rise in prices and were faced with tight supply, causing it a matter of primary importance for companies producing rubber products such as tires to guarantee the stable supply of raw materials. Environmental protection is the main reason for the rise in raw material prices: Firstly, the surging prices and tight supply of chemical raw materials for producing chemicals and carbon black not only pushed up the cost of producing chemicals and carbon black, but also affected the stable supply of products; Secondly, a batch of businesses that were not compliant with the environmental standard halted production and shut down, and many businesses were ordered to stop or limit production under the influence of environmental supervision. For example, many leading companies producing rubber chemicals and carbon black that were concentrated in the areas surrounding Beijing-Tianjin-Hebei region were greatly affected by environmental supervision of the state; Thirdly, against the background of even stricter environmental protection regulation, many companies were investing heavily in environmental protection, which also caused the rise of production cost; Fourthly, some places raised the environmental protection index based on the national standard, causing companies’ cost in environmental protection to rise further.
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