CEH Report

Table of Contents

Abstract

Styrene-butadiene elastomers (SBR) are the largest-volume synthetic rubber, accounting for about 32% of world consumption of synthetic rubber in 2009, according to the International Institute of Synthetic Rubber Producers. SBR is produced through the copolymerization of butadiene with styrene at a ratio of about 3:1. In addition, there are two major types of SBR—emulsion and solution. Emulsion grade continues to lose ground to solution grade, which is better able to meet the increasingly stringent specifications of high-performance tires. There is a need worldwide for more solution SBR capacity as demand is outpacing demand for emulsion-grade.

The tire industry is the dominant consumer of SBR, accounting for 70% of output. Apart from this, SBR is also used in conveyor belts, industrial hoses, various molded and extruded rubber goods, footwear and other consumer goods. Some grades of SBR—those that are waterproof and free from impurities—are also utilized in the cable industry. Protective rubbers resistant to y-radiation are also SBR-based.

The following pie chart shows world consumption of SBR:

As with most of the chemical industry, the market for SBR was hit by the global economic crisis/recession during 2008/2009. In consequence, demand for essentially all end uses suffered from the impact of the crisis. Currently, recovery is fastest in China and a few other Asian countries.

The world’s largest SBR consuming regions were China, the United States, Western Europe, and Central and Eastern Europe, accounting for two-thirds of total world consumption. China became the world leader in SBR consumption in 2009, overtaking North America. China’s vast capacity additions, linked with increased demand in the domestic automobile industry and high demand for tires, raised its consumption of SBR to the highest in the world. This will remain true in the forecast period from 2009 to 2014. The world average annual growth rate for SBR consumption during 2009–2014 is expected to be about 5% as a result of high demand in regions such as China, India, Central and South America, Central and Eastern Europe (including Russia), and other Asian countries.

China is expected to drive much of the SBR demand and is the fastest-growing market (based on volume), at roughly 6% per year during the forecast period. From 2007 to the end of 2009, China added nearly 400 thousand metric tons of SBR capacity. From 2010 to 2014, China plans to add another 400 thousand metric tons of SBR capacity. Other countries planning SBR capacity additions during 2010–2014 include Russia and India. Saudi Arabia has a few developments that may introduce SBR capacity beyond 2014.