SBS Consumption Increases Constantly
Year:2006 ISSUE:31
COLUMN:MARKET REPORT
Click:222    DateTime:Nov.08,2006
SBS Consumption Increases Constantly
By Cui Xiaoming

SBS (styrene-butadiene-styrene block copolymer) has the
features of great strength, good flexibility and little
permanent deformation. It also has elasticity like rubber. SBS
is suitable for use as an adhesive and sealing material in hot
melt processing. It has gained extensive applications in
shoemaking, polymer modification, asphalt modification,
waterproof coatings, liquid seal materials, electric wires,
electric cables, automobile components, medical apparatuses,
household electric appliances, office automation and adhesives.
The prospect for further development and application is very
bright.

1. Stable consumption growth in the world

By the end of 2005, more than 30 producers in 15 countries and
regions of the world, including the United States, China, Taiwan
province, Britain, France, Germany, Italy, Japan and Korea had
made the production of SBS. The total capacity reached around
1.507 million t/a and the output was around 1.150 million tons.
The capacity in Western Europe was 418 thousand t/a, accounting
for around 27.8% of the world total. The capacity in North
America was 269 thousand t/a, accounting for around 17.8%. The
capacity in Latin America was 65 thousand t/a, accounting for
around 4.3%. The capacity in the Asia-Pacific region was 755
thousand t/a, accounting for around 50.1%.
   The average annual growth of SBS consumption in the world was
around 6.5% from 1995 to 2003. Total consumption reached around
887 thousand tons in 2003 and further increased to around 988
thousand tons in 2005.
   It is expected that SBS consumption worldwide will increase
at an average annual rate of 5% - 6% in the next few years and
reach around 1.23 million tons in 2007. The growth of consumption
in advanced countries and regions such as the United States,
Western Europe and Japan will slow down, whereas the
Asia-Pacific region will become a new-round center for SBS
consumption.

2. Rapid growth of output in China

By the end of 2005, China had had three SBS producers with a total
capacity of 240 thousand t/a. The 100 thousand t/a unit in the
synthetic rubber factory of Hunan Yueyang Baling Petrochemical
Company Ltd.  is the biggest SBS unit in China today and its
capacity accounts for around 41.7% of the national total. The
SBS capacity in the synthetic rubber factory of Beijing Yanhua
Petrochemical Company Ltd. is 90 thousand t/a. The SBS capacity
in Ethylene Industry Co., Ltd. of Guangdong Maoming
Petrochemical Company Ltd. is 50 thousand t/a. Besides, SBS
production technology developed by China has also been
transferred to Enichem Elastomer of Italy and Synthetic Rubber
Co., Ltd. of Taiwan province. Synthetic Rubber Factory of
Beijing Yanhua Petrochemical Company Ltd. can produce 11
varieties of SBS. The synthetic rubber factory of Yueyang Baling
Petrochemical Company Ltd. can produce 20 varieties of SBS.
Ethylene Industry Co., Ltd. of Maoming Petrochemical Company Ltd.
can produce 13 varieties of SBS.
   With constant expansion of capacity, the output of SBS in
China has kept increasing. The output of SBS was 284 thousand
tons in 2005, an increase of around 17.16% over 2004.

  3. Stable consumption growth in China

SBS is mainly used in shoemaking, asphalt modification, polymer
modification and adhesives in China. The actual consumption of
SBS was 484 thousand tons in 2005, an increase of 9.5% over 2004.
The consumption distribution in 2005 was around 45.45% for
shoemaking, around 23.76% for asphalt modification, around
12.4% for adhesives, around 10.33% for polymer modification and
around 8.06% for others.

    (1) Shoemaking

Shoemaking is one of the most important consumption sectors for
SBS in China. In the shoemaking sector, SBS is mainly used to
make shoe soles. Shoe soles made from SBS instead of vulcanized
rubber and PVC (polyvinyl chloride) have the features of nice
appearance, comfortable wear, good tactile feel, great
elasticity, an excellent anti-skid property and abrasion
resistance, a high friction coefficient on wet and snowy asphalt
road surfaces, small weight, convenient recycling of scrap soles
and moderate cost. They are therefore highly acclaimed by
processing and application companies both at home and abroad.
SBS granules for shoemaking have already become the leading shoe
sole material in coastal areas. Exporters typically request SBS
as the shoe sole material.

    (2) Asphalt modification

In asphalt modification, SBS is used in modified asphalt
waterproof coiled material and road asphalt modification.
   Waterproof coiled materials made from SBS-modified asphalt
have the features of great low-temperature flexure,
self-healing ability, good durability, high-temperature flow
resistance, aging resistance, thermal stability and impact
resistance. SBS can greatly improve the property of waterproof
coiled materials and extend the service life of such materials.
It can therefore be extensively used in wall bodies of various
structures, toilets, bathrooms, basements, cold storage
chambers and bridges, as well as underground pipelines and
corrosion resistant and wetness-proof packaging materials.
China has a lot of modified asphalt waterproof coiled material
producers. There are 15 production lines introduced from abroad
and more than 50 production lines developed by China itself. The
total capacity has reached around 140 million m2/a.
   SBS is a good asphalt modifier. High-grade road surface
coated with SBS-modified asphalt has excellent performance and
a long service life. It has therefore aroused great interest of
more and more clients.

    (3) Polymer modification

SBS is a good polymer modifier and can be blended with PP
(polypropylene), PE (polyethylene), PS (polystyrene) and ABS
(acrylonitrile-butadiene- styrene) to improve the impact
resistance and flexibility of products. It is extensively used
in electric components, vehicle steering wheels/bumpers and
sealing parts.

    (4) Adhesives

SBS adhesives have excellent oil charge property and
compatibility. They are extensively used in the bonding of
leather, shoes, canvas, plastics, rubbers, ceramics, timber,
cement products, metals, paper and other non-metallic materials.
Their market prospect is bright.

    (5) Others

In other sectors, SBS is mainly used in brilliant oils, medical
apparatuses, household electric appliances, pipelines,
electric wires and electric cables.
   It is expected that the consumption of SBS in China will
increase at an average annual rate of around 6.1% from 2005 to
2010 and reach 650 thousand tons in 2010.

Table 1  Consumption of SBS in Major
                 Countries and Regions  
                                     (thousand tons)
Country/region    Consumption    Proportion (%)
USA     294    29.8
Western Europe    255    25.8
Japan