CEH Report

Table of Contents

Abstract

Ethylene-propylene elastomers (also referred to as EP elastomers) are the third-largest synthetic rubber consumed worldwide, after styrene-butadiene rubber (SBR) and polybutadiene rubber (BR). EP elastomers are characterized by their outstanding resistance to ozone, aging, weather and high temperatures. Moreover, they possess good low-temperature flexibility and have excellent electrical properties. These combined characteristics make EP elastomers particularly useful in certain automotive parts, single-ply roofing, appliance parts, polymer modification, wire and cable sheathing, as viscosity index improvers for lubricating oils, and in hoses and other miscellaneous applications. In addition, EP elastomers have lower densities than all other elastomers and plastics and can accept high loadings of reinforcing agents, fillers and plasticizers, rendering them an economical choice for a wide range of applications.

The following pie chart shows world consumption of EP elastomers:

In 2008, North America, Western Europe and Asia accounted for 26%, 25% and 34% of world consumption of EP elastomers, respectively. The United States (accounting for all North American production) was the largest exporting country, followed by the Republic of Korea and Japan. China’s EP elastomer imports have been growing rapidly, and in 2008 the country was the largest single importing country, with imports accounting for close to 90% of the country’s consumption.

Consumption of EPDM in automotive applications is the major use for EP elastomers (including the EP content of thermoplastic olefins), accounting for approximately 45–55% of global demand. EP elastomers are used for various body and chassis parts, radiator and heater hoses, and door and window weatherstripping. Thus, the growth of EP elastomers depends heavily on the growth of the automotive industry, which was severely impacted by the 2008–2009 financial crisis.

The supply of EP elastomers was not tight in 2008. The world operating rate during this time period was 75% on average. The current capacity as of early 2009, however, will not be sufficient for the 2013-and-beyond demand for EP elastomers. This situation will be alleviated some by capacity expansions as well as the expected new EP elastomer units in the Middle East (mainly Saudi Arabia) and possibly Asia in the near future, but the market is still expected to be tight in 2013.

As of March 2009, thirteen companies produced ethylene-propylene elastomers at seventeen sites around the world. Of the U.S. producers, only Dow Chemical Company and ExxonMobil Chemical Company have captive ethylene and propylene production. In Western Europe, ExxonMobil Chemical Company and DSM Elastomers have integrated feedstock positions, while other producers purchase raw materials or have only limited captive supplies (Polimeri Europa). In Japan, all of the EP elastomer producers are associated with a petrochemical center that operates olefins units.