RJA January-February 2015 Synthetic Rubber

Rubber Journal Asia Synthetic Rubber

Growth path for synthetic rubber Amidst the volatilities in raw materials

What is certain is that the downward trend for rubber materials will result in higher gross margins for tyre makers and dealers, according to industry analysts.

supplies and costs, demand for synthetic rubber is continuing to move forward, according to Angelica Buan in this market report.

NBR – strong contender in automotive he automotive sector, as well as other industrial sectors will continue to post high demand for nitrile butadiene rubber (NBR), according to a report by Research and Markets. The Global Nitrile he new year opened with a fete for sectors Butadiene Rubber (NBR) Market 2015-2019 report using rubber. With the continuing drop in says NBR will have a CAGR of 6.85% from 2014prices of crude oil, projected to bottom to US$49/ 2018. barrel, it is expected that prices of raw materials, Commonly known as nitrile rubber, NBR is including prices of rubber, will drop further. formed by the copolymerisation of butadiene The situation may justify the forecast from the and acrylonitrile. NBR is mainly used for recently released World Rubber Industry Outlook rubber products in key segments and in various (WRIO) by Singapore-based International Rubber applications owing to its suitable properties, Study Group (IRSG). It predicted that world total including resistance to heat, puncture, fuel, and rubber demand will jump 1.8% or 30.3 million many chemicals. tonnes in 2016 from 4.1% or 29.1 million tonnes in For the automotive sector, the synthetic rubber 2015. is widely used in the manufacture of brake liners, With this increase, IRSG says that demand for dashboards, brake pads and kick panels, given that synthetic rubber (SR) this year will reach 16.8 there is an increase in the demand for automotive million tonnes, climbing to 17.5 million tonnes in components.

2016.

“The tyre segment will largely benefit Likewise, it is also Come 2023, this in many demand could even from the cheap oil, since raw materials suited other applications, soar to 21.5 million such as hoses, tonnes; topping the will be cheaper…” belts/cables, consumption figures O-rings and seals, industrial and medical gloves, for natural rubber (NR). The latter is pegged at moulded and extruded products, adhesives and 12.3 million tonnes this year and expected to climb sealants, sponges, footwear and others.

12.9 million tonnes in 2016, further increasing to The report forecasts the market to witness 16.5 million tonnes in 2023, according to the study. continuous investments in capacity additions.

Manufacturers are investing in new machinery to maximise the use of raw materials and to minimise On track with tyre segment costs. he tyre segment will largely benefit from the While the requirement for NBR is generally cheap oil, since raw materials will be cheaper, forecast to surge, substitutes such as thermoplastic causing in a price drop for tyres. However, some polyester elastomers and thermoplastic polyolefins tyre manufacturers are refusing to enforce the are replacing NBR in the PVC modification sector, price cuts. according to Research and Markets, specifying In India, large tyre producers including MRF, the North American market to be experiencing a CEAT, JK Tyres, and Apollo Tyres have relented sluggish growth in this area. to reducing the tyre prices across segments to as much as 4% in light of the declining price of raw Asian growth in other applications materials. rowth in synthetic latex is also continuing MRF has cut prices of its commercial tyres by to prop up demand, say analysts. Southeast 1%-2% and Apollo Tyres by 2%-3% across the Asia is the fourth largest market for synthetic board on its tyres. In the truck and tyre segments, latex polymers, accounting for 8% of the global JK Tyres brought prices down by 1%-2% and consumption, according to a study presented by CEAT, also reduced prices for its truck tyres by Kline & Company.

1%-1.5%.

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Rubber Journal Asia Synthetic Rubber Malaysia, Thailand, “Malaysia, Thailand, and Indonesia US$45.8 billion and Indonesia by 2020, driven make up for 82% of synthetic latex by technology make up for 82% of synthetic latex polymer polymer consumption in the region” advancements, and consumption in the stringent safety region. policies aimed at Of the polymers, acrylonitrile butadiene (AB reducing hazardous leaks in process industries. nitrile) is the leading product type, accounting for New materials developed are also making headway 44.6% of the total consumption in the region by into the gaskets and seals market, for eg, EMI volume, followed by styrene acrylics, according to shielding gaskets launched by US-based Stockwell the Synthetic Latex Polymers: Southeast Asia Market Elastomerics. The custom gaskets are fabricated from Analysis and Opportunities report. closed cell silicone foam, closed cell silicone sponge It says that latex consumption in Malaysia and and fluorosilicone sponge with edge bonded knitted Thailand is dominated by AB nitrile due to the large monel mesh. importance of the glove dipping application in these In the healthcare segment, silicones are either used two countries. alone or combined with other materials to enhance Meanwhile in Indonesia, the product mix is functions. Leading silicones firms like Dow Corning dominated by styrene acrylics. Thailand dominates and Shin-Etsu Silicones have developed products in consumption of pure acrylics, which is the thirdthat are combining silicones with other materials largest type of synthetic latex polymers consumed to render more effective results and compliance to in the region. standard safety guidelines.

Kline & Company said that the positive GDP Recently, Michigan-headquartered Dow Corning, growth in these country markets makes up for the announced that its TPSiV materials, a hybrid of region’s synthetic latex polymers growth, forecast to thermoplastic polyurethane (TPU) and crosslinked rise at a CAGR of 6.5% through 2018. silicone rubber have been tested according to US Pharmacopeia’s (USP) guidelines. They have shown to Silicones gearing up for transport and healthcare be non-irritating and non-sensitising in skin contact eanwhile, another class of SR, silicone applications, thus making them suitable options for elastomers are likewise carving a niche in wearable electronics applications, such as wrist bands various segments including automotive, electrical for smart watches and fitness trackers, as well as for & electronics, device accessories healthcare, and such as ear buds. “…Asia Pacific region is the largest consumer goods.

Meanwhile, market for silicone elastomers, globally, Shin-Etsu According to a report from Silicones has both in terms of volume and value..” research analysts introduced the MarketsandMarkets, the Asia Pacific region is the Select-Skin RTV elastomer series for applications largest market for silicone elastomers, globally, requiring a skin-like material with tough performance both in terms of volume and value. It is followed by properties.

Europe, China, India, South Korea, Brazil, and the Middle-East. Its fast growth is driven by substantial Select-Skin RTV ventures across the aforementioned industries. elastomers from The current market size of silicone elastomers Shin-Etsu in terms of value is estimated to shoot up to US$11,014.26 million by 2019, from US$6,500.60 million in 2013, and is projected to reach a CAGR of 9.28% between 2014-2019.

Seen to boost these industries is the focus on R&D to develop future advancements and technology modifications of silicone elastomer applications to replace natural rubber and other rubber substitutes in broader applications.

Silicones are posting gains in the automotive and transport sectors, whereby the polymer is used in parts such as gaskets and seals.

Global Industry Analysts (GIA) project that the global gaskets and seals market will reach

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