Styrene-Butadiene Rubber Status & Trends

By Wang Yuying, Research Institute of PetroChina Jilin Petrochemical Co., Ltd.
Zhang Wei, Organic Synthesis Plant of PetroChina Jilin Petrochemical Co., Ltd.

Styrene-butadiene rubber (SBR) is the most in-demand variety of general-purpose synthetic rubbers. SBR is generally categorized according to its production process – emulsion-polymerized SBR (ESBR) and solution-polymerized SBR (SSBR).

Production

As of the end of 2015, China had 17 SBR producers with a combined capacity of 1.88 million t/a, including 11 large producers with a combined capacity of 1.46 million t/a (around 77.3% of the country’s capacity). Two new units provided most of the newly added capacity – a 100 kt/a ESBR unit of Shandong Huamao New Materials Co., Ltd. and a 100 kt/a SSBR unit of Liaoning North Dynasol Synthetic Rubber Co., Ltd. China’s SBR producers in 2015 are listed in Table 1.


Table 1    China’s SBR producers in 2015

Variety    Producer    Capacity (kt/a)    Product brands    Output (kt)
ESBR    Sinopec Qilu Petrochemical Co., Ltd.    235    1500, 1502, 1712, 1778, 1721, 1714, 1779    257
    PetroChina Fushun Petrochemical Co., Ltd.    200    1500, 1502, 1712    92
    Jiangsu Nantong Shenhua Chemical Industrial Co., Ltd.    180    1500E, 1502, 1712E, 1723, 1721    164
    PetroChina Lanzhou Petrochemical Co., Ltd.    150    1500, 1502, 1712    72
    PetroChina Jilin Petrochemical Co., Ltd.    140    1500, 1502, 1712    95
    YPC-GPRO (Nanjing) Rubber Co., Ltd.    100    1500, 1502, 1712, 1778    56
    Tianjin Lugang Petroleum Rubber Co., Ltd.??    100    1500, 1502, 1712    33
    Fujian Fuxiang Chemical Co., Ltd.    100    1500, 1502, 1712    67
    Bridgestone (Huizhou) Synthetic Rubber Co., Ltd.????    50    1500, 1712, 1723, 1739    35
    Hangzhou Zhechen Rubber Co., Ltd.???    100    1500, 1502, 1712    40
    Zhejiang Vitile Rubber Co., Ltd.    100    1500, 1502, 1712    20
Subtotal of ESBR    ?    1 455    ?    931
SSBR?
?    Sinopec Gaoqiao Petrochemical Co., Ltd.    67    T2003, T1534, T2530    7
    PetroChina Dushanzi Petrochemical Co., Ltd.    100    ?    37
    Shandong Huamao New Materials Co., Ltd.    100    ?    0
    Liaoning North Dynasol Synthetic Rubber Co., Ltd.    100    ?    -
    Sinopec Beijing Yanshan Petrochemical Co., Ltd.    30    ?    -
    Sinopec Maoming Petrochemical Co., Ltd.    30    ?    -
Subtotal of SSBR    ?    427    ?    44
Total        1 882    ?    975



In 2015, China had excess ESBR, as before, the situation did not improve, and demand was slack. Output was around 931 kt, basically equal to that of 2014, and the operating rate of ESBR units was around 62.9%. In 2015, domestic output of SSBR was low, as before, being around 44 kt.
Despite slump of the ESBR sector overall, the SBR unit of Sinopec Qilu Petrochemical Co., Ltd. ran at full load in 2015, mainly due to the company's long-term commitment to new product development and technological innovation. The company recently developed a kind of irradiated SBR-SBR1502F which is produced by the co-coagulation of irradiated vulcanized latex and styrene-butadiene latex SBR1502. The product can be used to make high performance automobile tires, improving the tires’ production process and application performance.

Consumption

In 2015, China's apparent consumption of SBR reached 1.30 million tons, up 2.2% YoY. Domestic SBR output was basically equal to that in 2014, and the domestic market share of domestic product was 75.1%. China’s supply and demand for SBR during 2010-2015 are shown in Table 2.
In China, SBR is used mainly to make tires and other tire products, requiring an estimated 908 kt in 2015, around 70.1% of the total. Around 218 kt was consumed in making mechanical products (including rubber tubes & tapes), accounting for around 21.8%, and other sectors (footwear, toys, household utensils, etc.) consumed around 169 kt, or around 13.1%.

Price

In 2015, the market price of SBR rose with fluctuation in the first half but decreased in the second half. In detail, after dipping to the historical low of nearly six years at the end of January, the price shot high with some fluctuation, but fell after June 24. In August, the price rebounded slightly, but the growth was limited. In November, the price plummeted, hitting the lowest level in seven years. Mainstream market prices of SBR1502 were RMB8 700-11 100/t. The year’s highest price of RMB11 100/t appeared in early and mid June, and the lowest price of RMB8 700/t appeared in early November. With prices staying low, profit margins are very small. However, with low oil prices, weak demand and oversupply, prices are expected to fluctuate at a low level for a while.


Table 2    China’s supply & demand for SBR, 2010-2015

Year    Output (kt)    Import (kt)    Export (kt)    Apparent consumption (kt)    Self-sufficiency rate (%)
2010    881    329    105    1 105    79.7
2011    1 044    298    109    1 233    84.7
2012    1 194    324    79    1 439    83.0
2013    1 165    360    87    1 438    81.0
2014    972    367    73    1 266    76.7
2015    975    370    50    1 295    75.3
Note: In the first 11 months of 2015, 341 kt was imported and 41 kt was exported. The import volume for the whole year is estimated.


Foreign trade

In 2015, China imported 341 kt of SBR, up 11% YoY, and exported 41 kt, down 31% YoY, according to customs statistical data. Within that, 55 kt of SSBR was imported, around 16.1% of the SBR total.
In recent years, China’s import volume of SBR has increased stably, mainly because imported products are superior to the domestic products in branding, quality and performance. Also, China dropped anti-dumping measures formerly imposed on SBR imported from Russia, Japan and Korea, enhancing the price advantage of these products. However, considering factors like the slowdown of growth in the entire tire sector, the import volume is expected to remain stable.