China’s PBR Capacity to Be Surplus

By Xiao Ming

Polybutadiene rubber (PBR) has the advantages of great elasticity, strong abrasion resistance, good low-temperature resistance, low heat generation, small lag loss, flex resistance, cracking resistance and good dynamic performance, etc. It can be used together with natural rubber, chloroprene rubber and nitrile rubber. PBR is therefore extensively used in tire production, impact modification and in the production of other rubber products such as rubber belts, rubber hoses and rubber shoes.

1.Constant growth of the output
Sinopec Beijing Yanshan Petrochemical Co., Ltd constructed China's first nickel-series PBR production unit in 1971. By the end of December 2012, China had 14 PBR producers with a total capacity of 1.195 million t/a, up around 24.09% year-on-year.
   China’s production of PBR is conducted in Sinopec, PetroChina and private or joint venture enterprises. The capacity to make PBR in Sinopec has reached 458 thousand t/a, accounting for around 38.33% of the national total, PetroChina’s capacity to produce PBR has been 275 thousand t/a, accounting for around 23.01% of the total, and the capacity to make PBR in private or joint venture enterprises has reached 462 thousand t/a, accounting for around 38.66% of the total. Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd is the largest producer of PBR in China today and has a capacity of 178 thousand t/a, accounting for around 14.90% of the total. In addition to the traditional nickel-series PBR, the product varieties of PBR include rare earth PBR as well as cobalt-series PBR and low cis-PBR. China’s major PBR producers in 2012 are listed in Table 1.

Table 1   China’s major PBR producers in 2012
Producer    Capacity (kt/a)
Sinopec Beijing Yanhua Petrochemical Co., Ltd    150
Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd    178
Sinopec Qilu Petrochemical Co., Ltd    60
Sinopec Baling Petrochemical Co., Ltd    60
PetroChina Jinzhou Petrochemical Co., Ltd    50
PetroChina Dushanzi Petrochemical Co., Ltd    65
PetroChina Daqing Petrochemical Co., Ltd    160
Sinopec Maoming Petrochemical Co., Ltd    10
TSRC-UBE (Nantong) Chemical Industrial Co., Ltd    72
Fujian Fuxiang Chemical Co., Ltd    50
Shandong Yuhuang Chemical Co., Ltd     160
Xinjiang Tianli Lande Fine Petrochemical Co., Ltd    50
Shandong Huamao New Materials Co., Ltd    100
Shandong Wanda Chemical Co., Ltd    30
Total    1 195

   With the capacity expansion, China’s output of PBR has increased continually. In 2012, the output reached 750 thousand tons, up around 8.07% year-on-year.

2. Surplus capacity of PBR

It is expected that by 2016, China’s capacity to make PBR will reached around 1.9 million t/a, resulting in the overcapacity, and the market competition will be fierce. China’s PBR units being planned for construction or expansion during 2013-2016 are shown in Table 2.

Table 2   China’s PBR Units Being Planned for Construction or Expansion during 2013-2016 (kt/a)
Producer    Newly-added capacity    Product variety    Expected startup time
PetroChina Sichuan Petrochemical Co., Ltd     150    Nickel-series PBR    2013 (new)
Sinopec Maoming Petrochemical Co., Ltd    100    Nickel-series PBR    Completed in 2013 (new)
YPC-GPRO (Nanjing) Rubber Co., Ltd    100    Nickel-series PBR    2013 (new)
Sinopec Zhenhai Refining and Chemical Co., Ltd    60    Nickel-series PBR    2015 (new)
Shandong Zibo Qixiang Tengda Chemical Co., Ltd    50    Rare earth PBR    2013 (new)
Zhejiang Transfar Co., Ltd    100    Nickel-series PBR    2013 (new)
Liaoning Shengyou Rubber Technology Co., Ltd    30    Nickel-series PBR    2014 (new)
Formosa Plastics (Ningbo) Co., Ltd    50    -    2013 (new)
Shanghai Huayi Acrylic Acid Co., Ltd    70    Nickel-series PBR    2014 (new)
Shandong Shouguang Junteng Synthetic Rubber Co., Ltd    50    Nickel-series PBR    2014 (new)
Total    760

3.Consumption growth

With the rapid development of the industries, China’s demand for PBR has also increased rapidly. The apparent consumption of PBR in China was 685.8 thousand tons in 2007 and increased to 766.9 thousand tons in 2009, up around 27.39% year-on-year. In 2012, China’s apparent consumption of PBR reached around 950.3 thousand tons in 2012, a year-on-year growth of around 6.20%. The self-sufficiency rate of PBR in China was 70.14% in 2007, dropped to 62.20% in 2009 and then climbed to around 78.92% in 2012. China’s supply and demand of PBR in recent years are listed in Table 3.

Table 3  China’s Supply and Demand of PBR in Recent Years (kt)
Year    Output     Import     Export     Apparent consumption     Self-sufficiency rate (%)
2007    481.0    219.5    14.7    685.8    70.14
2008    440.9    186.5    25.4    602.0    73.24
2009    477.0    306.1    16.2    766.9    62.20
2010    605.0    262.0    30.6    836.4    72.33
2011    694.0    246.8    46.0    894.8    77.56
2012    750.0    235.6    35.3    950.3    78.92

   At present, PBR in China is mainly used in tire production, shoemaking, and HIPS (high impact polystyrene) and ABS (acrylonitrile-butadiene-styrene) resin modification. The demand for PBR in tire production accounts for around 70.3% of the total, while the proportion is around 9.1% for shoemaking, around 10.2% for HIPS and ABS resin modification, around 6.8% for cycle tires and around 3.6% for other sectors like rubber hose and rubber belt. With the product portfolio of tires in China being transformed from bias tire to radial tire and from inner tire to tubeless tire, the demand for high performance tires and the “green” tires will climb continually, as a result the demand for PBR, especially high performance rare earth PBR will therefore increase constantly. In addition, with the rapid development of electrical and electronic sector, the consumption of HIPS and ABS will grow rapidly, and PBR, as the plastic impact modifier will also be widely applied.
   It is expected the demand for PBR in China to be ranging 1.1 million-1.15 million tons by 2016. China’s capacity to make PBR would reach around 1.9 million t/a at that time, resulting in the overcapacity, and the market competition will be fierce.