EPR Is Short of Supply

By John Zheng

Ethylene-propylene rubber (EPR) has excellent resistance to
ozone, aging and chemical corrosion and excellent electric
insulation and steam resistance. Its monomers are also easy to
get. It therefore has extensive applications in automobiles,
waterproof coil materials, electric wire/cable sleeves, polymer
modification and oil product additives.
    The total capacity of EPR in the world was around 1.46
million t/a and the total output was over 950 thousand tons in
2004. Producers are mainly distributed in the United States,
Japan and Western Europe and the capacity in these 3 regions
accounts respectively for 38.40%, 27.72% and 24.64% of the world
total. Major EPR producers in the world today include Exxon Mobil
and DuPont Dow Elastomers of the United States, DSM of Holland,
Mitsui Chemical of Japan and Bayer of Germany.
   China is one of the countries with the most rapid demand
growth of ERP in the world. With the rapid development of the
automobile industry and the construction industry in recent
years, the demand of EPR has increased drastically. The demand
of EPR reached 156 thousand tons in 2005, an increase of around
32.9% over 2004. The average annual growth of the apparent
consumption was around 46.8% from 2000 to 2005.

Rapid demand growth

In China only CNPC Jilin Petrochemical Company Ltd. has a 20
thousand t/a EPR unit today. The output was 19 237 tons in 2005,
being 11.6% less than 2004.
   As the output of EPR in China falls far short of the actual
domestic demand, import has to be made from the United States,
Korea and Japan each year and the import amount presents a trend
of constant rise. The total import amount of EPR in China reached
around 138 thousand tons in 2005, an increase of 42.7% over 2004
and accounting for 88.2% of the domestic market demand. The
average annual growth of the import amount was around 25% from
2000 to 2005. While making import, China also exports small
amounts of EPR. The export amount was 813 tons in 2005.
    The consumption distribution of EPR in China in 2005 was
around 42.5% for the automobile industry, 10.3% for waterproof
coiled materials, 8.1% for electric wires and cables, 10.3% for
oil product additives, 11.5% for polymer modification, 9.2% for
plastic runways and 8.1% for other sectors.

Automobile industry:
In the automobile industry in China, EPR is mainly used to
produce radiator tubes and sealing strips. EPR/PP modified
materials are used to produce steering wheels, bumpers and
dashboards. The automobile industry in China has developed
rapidly in recent years. The consumption of EPR in the sector
was around 66 thousand tons in 2005 and is expected to reach
around 120 thousand tons in 2010.

Waterproof coil materials:
EPR is one of waterproof coil materials with the best application
property. Compared with traditional asphalt, it has the features
of long service life, great strength, good elasticity, reliable
water resistance, convenient operation and small risk. EPR has
already applied in the waterproof sector and is extensively used
in waterproof projects such as houses, bridges, tunnels,
reservoirs and dams. The demand of EPR waterproof coil materials
in China is around 9.0 million m2 a year today. High-grade
products are mostly imported from abroad. The consumption of EPR
in the sector was around 16 thousand tons in 2005 and is expected
to reach around 21 thousand tons in 2010.

Oil product additives:
Ethylene/propylene copolymer anchoring agent has strong
thickening power, good anti-shear stability, low-temperature
resistance and oxidization resistance. It is one of the major
additives used in the production of multi-stage engine gear oils.
The consumption of EPR in lubricant additives was around 16
thousand tons in 2005 and is expected to reach around 22 thousand
tons in 2010.

Electric wires and cables:
The consumption of EPR in electric wires and cables was around
13 thousand tons in 2005 and is expected to reach around 18
thousand tons in 2010.

Polymer modification:
EPR is mainly used in automobile bumpers and dashboards. It can
also be used as polymer modifier. The consumption of EPR in
polymer modification was around 18 thousand tons in 2005 and is
expected to reach around 24 thousand tons in 2010.

Plastic runways:
The consumption of EPR in plastic runways was around 15 thousand
tons in 2005 and is expected to reach around 30 thousand tons
in 2010.
   When the demand in other sectors is added, the total demand
of EPR in China is expected to reach around 250 thousand tons
in 2010. Although CNPC Jilin Petrochemical Company Ltd. plans
to expand its EPR capacity to 60 thousand t/a at the end of 2006,
the output still can not meet the domestic demand. A considerable
amount of EPR will still have to be imported from abroad to bridge
the gap. EPR therefore has a bright development and application
prospect in China.

Supply and Demand of EPR in China in Recent Years
                                       (t)
Year    2000    2001    2002    2003    2004    2005
Output    7 450    15 028    20 034    20 400    21 756    19 237
Import    15 606    23 244    27 577    63 431    96 676    137 951
Export    119     469     481     762     804     813
Consumption    22 937    37 803    47 130    83 069    117 628    156 375
Source: CNCIC Chemdata