BERWYN, Pa.—The Chemical Marketing and Economics group of the American Chemical Society’s New York Section has selected Trinseo CEO and President Christopher Pappas as the recipient of its Leadership Award for Outstanding Corporate Reinvention.
This observation — by Yuka Kimoto, director of marketing for Lion Elastomers — is the accepted wisdom in the synthetic rubber market, and with good reason.
Prices for a wide swath of synthetic rubbers have gone sharply up in the past few months, sparked by equally sharp increases in butadiene, methanol and other petrochemical feedstocks.
Considering oil prices alone, there is no reason to believe that feedstock prices — and, with them, SR prices — are coming down any time soon. As of March 30, futures for both West Texas Intermediate Crude and Brent Crude were at a three-week high, at around $50 or so per barrel, indicating bullish prices for anything based on petroleum.
The reason is another well-known factor, in SR and in every other commodity: supply and demand. In the case of butadiene, there was another issue: location, location, location.
Scheduled and unscheduled maintenance shutdowns for butadiene facilities in Asia and Europe placed limits on the availability of butadiene, according to sources who spoke to Rubber & Plastics News and European Rubber Journal.
An unexpected surge of demand for butadiene in China, starting in the fall of 2016 and continuing into 2017, caused Asian butadiene prices to soar as high as $3,000 per metric ton. North American and European prices, though never as high as in Asia, rose accordingly.
Cologne, Germany – Arlanxeo, the 50:50 synthetic rubber joint venture between Lanxess and Saudi Aramco has reported a 5.2% decrease in sales to €2.71 billion in the full fiscal year 2016.
In its financial results for the year 2016, German-based parent company Lanxess said the drop in sales was due to “persistently difficult competitive environment.”
NEW YORK, March 15, 2017 /PRNewswire/ — On Tuesday, benchmark US indices were in bearish colors as the NASDAQ Composite closed the trading session down 0.32%; the Dow Jones Industrial Average edged 0.21% lower; and the S&P 500 was down 0.34%. …
On Tuesday, shares in Berwyn, Pennsylvania headquartered Trinseo S.A. ended the session 0.07% lower at $70.30 with a total volume of 532,964 shares traded. Trinseo’s shares have advanced 0.50% in the last one month and 17.36% in the previous three months. Furthermore, the stock has rallied 106.35% in the past one year. Shares of the Company, which manufactures and markets synthetic rubber, latex binders, and plastic products in Europe, North America, Latin America, and the Asia/Pacific, are trading at a PE ratio of 10.47. The stock is trading 5.55% above its 50-day moving average and 25.26% above its 200-day moving average.
Tokyo – Sumitomo Rubber Industries (SRI) has developed a winter tire using Kuraray-supplied liquid farnesene rubber (LFR) as a performance enhancing additive, the Japanese synthetic rubber supplier announced 20 Feb.
Tokyo-based SRI has used the additive in the production of its latest studless tire Winter Maxx 02, according to Kuraray’s announcement.
LFR is a liquid rubber developed by Kuraray using farnesene, a new biologically derived diene monomer developed by US biotech company Amyris.
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.
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.
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.
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.”
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.