Overcapacity Biggest challenge for Synthetic Rubber

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Overcapacity is one of the biggest challenges facing the global synthetic rubber (SR) industry. This has been driven mainly by over-investment in China during the past years. This situation of overcapacity has forced many facilities to work with reduced operating rates and delay or cancel several expansion projects. Some facilities have been deactivated or dismantled and others are in the process of switching over to produce other elastomer types such as SBS. This is most noticeable in China and the Asia Pacific region.
Even so, the SR industry is expected to continue to grow moderately compared to the previous years. By 2016, the installed capacity is expected to grow by 2 per cent, according to our information. To this situation of overcapacity, if we add dull world economic growth, the situation becomes more complicated.

Uses in key industries

Synthetic rubbers have been leading the global rubber market since the 1940’s and are used in the manufacture of many types of products that we use every day which make our lives more comfortable. The automotive and tyre sectors will keep driving the SR demand. The construction sector generates significant demand of synthetic rubber in many end-uses such as paving/roads, waterproofing membranes, and adhesives and sealants. It is also very useful to the food industry with several end uses such as labelling, packaging, and more. Synthetic rubbers are also the material of choice for appliances, footwear, personal care, medical applications and others.
The SR industry has an important and extensive business relationship with all these key industries, and therefore, has been influenced by the performance and situation of its trading partners. The global SR market experienced a sharp downfall in demand during the global economic crisis. However, coming out of the deep recession impact, it expects a moderate growth rate close to 2 per cent CAGR in the upcoming years.

Read the source article at Rubber Asia

Trinseo backing new rubber technologies

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London – Trinseo expects to commercialise its neodymium BR (Nd-BR) production by end of 2017 or early 2018 depending on customer feedback, according to Samer Al-Jabi, global business director for synthetic rubber.

The Berwyn, Pennsylvania-based company announced in April 2014 that it planned to convert its nickel butadiene rubber (Ni-BR) production train in Schkopau, Germany to manufacture Nd-BR.

Read the source article at European Rubber Journal

Apollo Tyres’ revenue surges but margins skid as costs rise

No doubt, Apollo Tyres Ltd’s December quarter performance raced past Street expectations on all fronts. But rising raw material prices tempered the company’s profitability and the bigger concern is there is no sign of them cooling off.

In fact, Apollo Tyres’ management in the analysts’ call cautioned investors that there could be a 10% increase in overall raw material costs in the March quarter too. This is not surprising given that RSS Grade-4 rubber prices (used in tyre manufacture) alone surged by about 40% over the last 12 months. Other commodity prices like synthetic rubber, whose price is linked to crude oil, are up too.

No wonder then that the December quarter’s operating margin fell by about 270 basis points year-on-year to 14.4%, although higher than Bloomberg’s forecast. A basis point is one hundredth of a percentage point.

What came to Apollo Tyres’ rescue was its robust sales, which grew by 17.3% to Rs3,457 crore at the consolidated level.

Read the source article at Global Rubber Markets News

Trinseo and Sumitomo Chemical Enter into Share Transfer Agreement Regarding Polycarbonate Joint Venture in Japan

Trinseo Holding B.V., a wholly owned subsidiary of Trinseo S.A. (NYSE: TSE), and Sumitomo Chemical Co., Ltd, have signed a definitive agreement for Trinseo to sell all of its 50 percent share in their Sumika Styron Polycarbonate (SSPC) joint venture to Sumitomo Chemical for an undisclosed price.

Sumika Styron Polycarbonate currently produces polycarbonate resins at production facilities in Niihama City, Ehime, Japan, and serves customers and markets throughout Asia. In addition to the sale of Trinseo’s ownership in the joint venture, the parties have agreed to continue long-term supply of polycarbonate resin to Trinseo’s Performance Plastics businesses and as such will maintain the strategic relationship between SSPC and Trinseo.

“Sumitomo Chemical is a natural owner for this Japan-based polycarbonate plant, and as an industry leader in the region, Sumitomo Chemical is better positioned to manage and deliver value from this asset in the future,” said Tim Stedman, Senior Vice President and Business President for Basic Plastics and Feedstocks, Trinseo. “At the same time, Asia Pacific continues to be an important growth region for Trinseo, and the company is strongly committed to growing our Performance businesses in the region.”

Read the source article at Stock Market

Demand for Tires in China Is Making Your Rubber Gloves Pricier

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Demand for Tires in China Is Making Your Rubber Gloves Pricier by China’s tire demand has helped a rubber ingredient surge 117% Rubber glove makers’ raw material costs jumped 45% since Sept. Consumers across the globe donning gloves to do the dishes may soon feel the heat from rubber being burned on China’s roads. Surging car sales in China in the last few months have more than doubled the price of a little-known chemical called butadiene.

Read the source article at Bloomberg.com

Synthetic Rubber Market to Exceed US$ 45 Billion by 2023

Press release from: Market Research Engine (MRE) Reports New York, January 12: Market Research Engine has published a new report titled as “Synthetic Rubber Market by Product Type (Nitrile Butadiene Rubber, Ethylenean Propylene, Polybutadiene, Styrene Butadiene Rubber), by End-Users and by Geography – Global Industry Analysis and Forecast 2015 – 2023”How Big is the Global Synthetic Rubber Market? The global synthetic rubber market is expected to exceed more than US$ 45 Billion by 2023; Growing at a CAGR of more than 5% in the given forecast period.

Read the source article at openPR.com

Iran to build synthetic rubber plant near Turkish border

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Tehran – Iran is planning to build a major petrochemical plant with synthetic rubber production units in its north-western city of Tabriz, near the border with Turkey, according to energy news website Shana.

The Islamic republic broke ground on an ethylene pipeline project in the city on 6 Jan, which according to oil minister Bijan Zangeneh will be a cornerstone for building a “major” petrochemical hub in the region.

Read the source article at European Rubber Journal

Tatneft selling synthetic rubber business

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Almetyevsk, Russia – Russian petrochemical giant PJSC Tatneft has agreed to sell its shareholding in the Nizhnekamskneftekhim synthetic rubber business to TAIF PSC, a capital investment company focused on developing industry in Russia’s Tartarstan region.

The transaction price is $525 million (€503 million) for Tatneft’s 402.8 million shares. TAIF already owned the majority share.

Read the source article at European Rubber Journal

Major tire makers raising prices as materials go up

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Major tire makers raising prices as materials go up By Kuo Chia-erh / Staff reporter Major tire makers are planning to raise prices by between 8 and 12 percent next year on the back of soaring synthetic rubber and natural rubber prices. Federal Corp (泰豐輪胎) said in a Taiwan Stock Exchange filing that it would increase prices by between 9 and 12 percent, days after Nankang Rubber Tire Corp (南港輪胎) said it would increase prices by the same percentage, while Hwa Fong Rubber Industry Co (華豐橡膠) said it would hike prices by 8 to 10 percent. Global rubber prices soared 100 …

Read the source article at Taipei Times

Fluoroelastomers market to grow 4% to 2021

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Hyderabad, India – The fluoroelastomers market is pegged to grow at CAGR of 4.0% during 2016 and 2021, according to a recent report by Indian research group IndustryArC.

The research states that synthetic rubber would continue to grow in the automotive and aerospace industry thanks to its “light weight feature and other excellent properties.”

Read the source article at European Rubber Journal