Status Quo of China’s Rubber Antioxidant Sector

By Dai Meixia and Liang Cheng, Sinopec Nanjing Chemical Industries Co., Ltd.

Rubber antioxidants are major varieties of rubber additives. By the end of 2013 the consumption of rubber antioxidants in the world was around 500 kt, accounting for 37% of the total output of rubber additives. Rubber antioxidants can be classified by structure into p-phenylenediamine derivatives, quinoline derivatives, diphenylamine derivatives, naphthylamine derivatives, phenol derivatives and phosphite derivatives. Varieties with excellent properties suitable for use in tires and especially radial tires mainly include p-phenylenediamine derivatives (major varieties including 6PPD and IPPD) and quinoline derivatives (major variety being RD). The consumption of other varieties is relatively small. The consumption of rubber antioxidants in the world was 500 kt in 2013, including a consumption of around 210 kt in China.

1. Supply

The capacity for rubber antioxidants in China was around 400 kt/a in 2013 and the output was 315.2 kt, accounting for around 63% of the world output. Table 1 shows the major rubber antioxidant producers in China in 2013 and their capacities.
Currently, the market demand for rubber antioxidants is brisk; the capacity is making a drastic increase; the output has maintained a trend of rapid growth; the product structure has also undergone considerable adjustments. With the growing awareness in environmental protection, the output of naphthylamine derivatives has already shrunk. The output growth of p-phenylenediamine derivatives with excellent properties is quickly accelerated. Table 2 shows the output of rubber antioxidants in China in recent years. Figure 1 shows major varieties and their proportions in China.
Rubber antioxidants have a bright market prospect. With the constant maturing of clean process technologies, a long-lasting upsurge in the construction of rubber additive projects was triggered during 2009-2013. The investment enthusiasm remains to be high in 2014. The 50 kt/a antioxidant RD project constructed by Shanxi Xuangyu Chemical Industries Co., Ltd. at the end of 2013 will start production in mid-2014. The second phase of the antioxidant project in Shandong Ekesen Chemical Co., Ltd. is under construction. Tianjin Bohai Chemical Industry Group Tianjin First Organic Chemical Co., Ltd. plans to construct a unit integrating 50 kt/a rubber antioxidants and matched raw materials in Wuhai of Inner Mongolia. In addition, quite a few enterprises also plan to construct production units of new types of antioxidants.

Table 1   Major rubber antioxidant producers in China in 2013 (kt/a)

Company    Major varieties    Capacity
Jiangsu Sinorgchem Technology Co., Ltd.    6PPD, IPPD, FR    125
Sinopec Nanjing Chemical Industries Co., Ltd.    6PPD, IPPD, RD    70
Tianjin Kemai Chemical Co., Ltd.    RD    50
Shanxi Xiangyu Chemical Industries Co., Ltd.    6PPD, IPPD    40
Shandong Sunsine Chemical Co., Ltd.    6PPD, RD    30
Shandong Ekesen Chemical Co., Ltd.    6PPD, IPPD    20
Northeast Auxiliary Chemical Industry Co., Ltd.    6PPD    10
Haian Feiya Chemical Industry Co., Ltd.    Diphenylamine
derivatives    20
Others    RD, BLE, DTPD, etc.    35
Total        400


Table 2   Output of Rubber Antioxidants in China (kt)

Variety    6PPD    IPPD    RD    Diphenylamine
derivatives    Naphthylamine
derivatives    Phenol derivatives
and others    Total
2006    36    16    47    -    6.1    7.6    112.7
2007    51    19    50    1.5    1.8    12.3    135.6
2008    70    19    49    3.7    1.9    25.1    168.7
2009    77    24    74    20.3    2.0    7.8    205.1
2010    115    35    98    11.7    2.2    12.5    274.4
2011    121    29    92    20.4    4.0    15.2    281.6
2012    135    21    99    22.9    3.0    11.3    292.2
2013    174    3    95    23.3    1.4    18.5    315.2


2. Demand

The sustained rapid output increase of automobiles and tires has promoted the market demand for rubber additives in China. The rubber additive sector is closely related to the development of automobile and tire sectors.
According to the analysis made to the statistics of China Automobile Industry Association, the production of automobiles was 22.1168 million vehicles, an increase of 14.8% over the previous year. The total amount of automobiles was more than 137 million vehicles. It is expected that the output and the sales of automobiles in China can hopefully make an increase of 8-10% in 2014 to reach around 24 million vehicles. The major economic indexes of the tire industry in China were stable with some increase in 2013. The profit in 45 major tire producers was 18% higher than the previous year. Data from the National Bureau of Statistics show that the total output of tire casings in China reached 965.0 million pieces in 2013, an increase of 7.2% over the previous year, the consumption of raw rubber was 13.7% higher and the export volume of tires was 9.4% higher.
The stable development of automobile and tire sectors indicates the sound market demand and the bright prospect of the rubber additive sector. The demand growth of rubber additives in China will be kept at over 7% in next few years. It is expected that the demand (including export) for major rubber antioxidant varieties in China in 2015 will be 200 kt for p-phenylenediamine derivatives, 115 kt for quinoline derivatives and 50 kt for other varieties, totaling 365 kt.

3. Market

The market trend of rubber antioxidants in China is on the whole quite stable. Due to the rapid capacity expansion, competition in the domestic market is getting fiercer.  Figure 2 shows the recent price trend of major rubber antioxidants in China.

4. Foreign trade

By the end of 2013 China already became a major producer and supplier of rubber antioxidants in the world. Products were exported in great quantities. In export applications to customs, rubber antioxidants are under different categories; some varieties are categorized as rubber antioxidant and others are categorized as chemical compounds. Therefore, export data from China’s customs statistics is much smaller than the actual export volume. According to the China Rubber Industry Association Additives Branch, the export volume of rubber additives in China was 276 kt in 2013, including around 105 kt of rubber antioxidants. The import volume of rubber antioxidants to China was 19 kt and the import value was US$62.02 million.

5. Suggestions

Although the market demand prospect of rubber antioxidants in China is still quite promising, the enormous capacity expansion in the past several years greatly intensified the competition among the sector. Industrial layout, product portfolio and synthesis technology in the rubber antioxidant sector will undergo considerable adjustments. The survival of the fittest will start full functioning in the sector. In order to get the upper hand in future competition, enterprises are suggested to:
(1) Adopt greener processes
Enterprises are suggested to highlight the development and application of green processes and effective wastes treatment technologies, to improve and upgrade process technologies for the synthesis of p-aminodiphenylamine (the intermediate to synthesize p-phenylenediamine antioxidants) through the nitrobenzene process and the synthesis of methyl isobutyl ketone through the acetone one-step process, to promote the commercialization of clean technologies such as the synthesis of antioxidant RD through the solid acid process, the synthesis of antioxidant DTPD from mixed amines and the catalytic synthesis of p-phenylenediamine antioxidants in the presence of noble metal catalysts.
(2) Emphasize energy conservation and emission reduction
Specific measures include the energy consumption reduction during the production of RD, the recovery of byproduct alcohol during the production of 6PPD, the use of new catalysts to reduce the reaction temperature during the production of DTPD, the development of lignin antioxidants with biomass as raw material and the recovery of catalysts in the synthesis of p-aminodiphenylamine. In addition, to avoid redundant construction and reduce logistic cost, the industrial layout should be rationalized.
(3) Optimize product portfolio
Enterprises should conduct constant R&D of new antioxidant varieties such as p-phenylenediamine antioxidants 7PPD, 77PD and 44PD, quinoline antioxidant FR, anti-caking compound antioxidant 6PPD, new phosphite and phenol antioxidants with hydrolysis and high-temperature resistance, and closely follow the application of antioxidant TAPDT and anti-ozone protecting agent BIMS developed in developed countries.
(4) Move towards globalization
With the constant upgrading of the capacity and the technology of rubber antioxidants in China, large antioxidant producers should focus on international production and market distributions, acquire or construct production units abroad, implement globalization strategies.