Styrene Butadiene Rubber

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Special Report Chemical Weekly October 27, 2009 183 S tyrene-butadiene rubber (SBR) is a random copolymer produced, as the name suggests, from sty- rene and butadiene. SBR was the first major synthetic rubber (SR) to be produced commer- cially. Early grades produced in Ger- many by Buna S and in the United States by Standard Oil Company/The Rubber Reserve Company during the Second World War were based on the emulsion polymerization technology developed by I.G. Farbenindustrie AG of Germany. During the 1960s, the first solution polymerized random SBR grades were produced commercially by Firestone and Phillips. The original aim was to produce SBR with lower styrene con- tent than achievable by emulsion poly- merization to counteract the increase in styrene prices. SBR is the workhorse of the rub- ber industry, even though some of its properties do not match those of natu- ral rubber (NR). What it lacks in elon- gation, hot tear strength, hysteresis, re- silience and tensile strength, it makes up for in better processability, slightly better heat aging and better abrasion resistance than NR. Probably the most important factors in the commercial viability of SBR have been its wide availability, low cost compared with those of all other SRs, ability to accept high filler levels, relatively stable price compared with that of NR and overall properties on a cost/performance ba- sis. Principal applications are in tyres and tyre products, automotive parts and mechanical rubber goods. SBR technology developments have continued even though the business is mature. Developments are being prompted by tyre producers that are looking for elastomers with improved performance characteristics. The flexi- bility of solution processes has enabled producers to develop ‘tailored’ SBR grades, which improve the combination of mechanical properties (e.g. traction — grip; handling — ride, cornering performance, performance at speed; and rolling resistance) and processing characteristics. More recently, producers have fo- cused on the capability to use additives to vary the stereochemistry of the diene polymerization and to control polymer micro- and macro-structure to produce solution SBR grades with optimum properties. Chemical structure and properties The peculiar nature of the insertion of butadiene on the growing chain, i.e. the 1,4 and 1,2 additions, together with the two possible 1,4 addition isomers, cis and trans, suggests it would be more appropriate to refer to SBR as a four- monomer copolymer. This remark acquires a particular meaning if we consider the physical and rheological characteristics of the finished polymer. The balance between the structural unit content of styrene, 1,4- and 1,2-butadiene along the chain is the most important parameter affect- ing the glass transition temperature (T g ) of the material. Most interestingly, the concentration of 1,4 trans units has a strong influence on the strain-induced crystallization of the rubber, which means a reinforcing effect on the tensile ultimate properties. Moreover, the rela- tive concentration of 1,4 and 1,2 units may influence the thermal stability of the polymer. The oxidative degradation of the rubber starts from the addition of oxygen on a double bond: if the double bond is part of the main chain, as in the case of 1,4 units, the reaction will lead to a chain scission. Types of SBR There are two major types of SBR, based on the manufacturing process adopted: Emulsion SBR (e-SBR); and Solution SBR (s-SBR). At the very beginning of their devel- opment, s-SBRs suffered from process- ing problems, due to their narrow mo- lecular weight distribution (MWD). As a matter of fact, the main problem for s-SBR to overcome has always been the non-interchangeability with the e-SBRs commonly used by tyre producers; the limited number of grades coming from the emulsion process makes it easier to switch from a supplier to the other, without any re-configuration of the pro- cessing machines and procedures. So one of the main efforts of s-SBR producers has been the search for a bet- ter processability, which is obtained by modifying polymer macro-structure (i.e. MWD and long chain branching). In this sense, the use of coupling agents like SiCl 4 and SnCl 4 in the batch anio- nic synthesis provided a way to broaden the MWD, adding a star-shaped struc- ture at the same time. In order to maximize market share, automotive companies have conti- nuously developed vehicles with su- perior performance and durability (in- creased mileage). This has resulted in SerieS On rubber — part 2 Styrene-Butadiene Rubber: A Techno-commercial Profile 183

description

Styrene_Butadiene_Rubber

Transcript of Styrene Butadiene Rubber

Page 1: Styrene Butadiene Rubber

Special Report

Chemical Weekly October 27, 2009 183

Styrene-butadiene rubber (SBR) is a random copolymer produced, as the name suggests, from sty-

rene and butadiene.

SBR was the first major synthetic rubber (SR) to be produced commer-cially. Early grades produced in Ger-many by Buna S and in the United States by Standard Oil Company/The Rubber Reserve Company during the Second World War were based on the emulsion polymerization technology developed by I.G. Farbenindustrie AG of Germany.

During the 1960s, the first solution polymerized random SBR grades were produced commercially by Firestone and Phillips. The original aim was to produce SBR with lower styrene con-tent than achievable by emulsion poly-merization to counteract the increase in styrene prices.

SBR is the workhorse of the rub-ber industry, even though some of its properties do not match those of natu-ral rubber (NR). What it lacks in elon-gation, hot tear strength, hysteresis, re-silience and tensile strength, it makes up for in better processability, slightly better heat aging and better abrasion resistance than NR. Probably the most important factors in the commercial viability of SBR have been its wide availability, low cost compared with those of all other SRs, ability to accept high filler levels, relatively stable price compared with that of NR and overall properties on a cost/performance ba-sis.

Principal applications are in tyres and tyre products, automotive parts and mechanical rubber goods.

SBR technology developments have continued even though the business is mature. Developments are being prompted by tyre producers that are looking for elastomers with improved performance characteristics. The flexi-bility of solution processes has enabled producers to develop ‘tailored’ SBR grades, which improve the combination of mechanical properties (e.g. traction — grip; handling — ride, cornering performance, performance at speed; and rolling resistance) and processing characteristics.

More recently, producers have fo-cused on the capability to use additives to vary the stereochemistry of the diene polymerization and to control polymer micro- and macro-structure to produce solution SBR grades with optimum properties.

Chemical structure and propertiesThe peculiar nature of the insertion

of butadiene on the growing chain, i.e. the 1,4 and 1,2 additions, together with the two possible 1,4 addition isomers, cis and trans, suggests it would be more appropriate to refer to SBR as a four-monomer copolymer.

This remark acquires a particular meaning if we consider the physical and rheological characteristics of the finished polymer. The balance between the structural unit content of styrene, 1,4- and 1,2-butadiene along the chain is the most important parameter affect-ing the glass transition temperature (T

g)

of the material. Most interestingly, the concentration of 1,4 trans units has a strong influence on the strain-induced crystallization of the rubber, which means a reinforcing effect on the tensile ultimate properties. Moreover, the rela-

tive concentration of 1,4 and 1,2 units may influence the thermal stability of the polymer. The oxidative degradation of the rubber starts from the addition of oxygen on a double bond: if the double bond is part of the main chain, as in the case of 1,4 units, the reaction will lead to a chain scission.

Types of SBRThere are two major types of SBR,

based on the manufacturing process adopted: Emulsion SBR (e-SBR); and Solution SBR (s-SBR).

At the very beginning of their devel-opment, s-SBRs suffered from process-ing problems, due to their narrow mo-lecular weight distribution (MWD). As a matter of fact, the main problem for s-SBR to overcome has always been the non-interchangeability with the e-SBRs commonly used by tyre producers; the limited number of grades coming from the emulsion process makes it easier to switch from a supplier to the other, without any re-configuration of the pro-cessing machines and procedures.

So one of the main efforts of s-SBR producers has been the search for a bet-ter processability, which is obtained by modifying polymer macro-structure (i.e. MWD and long chain branching). In this sense, the use of coupling agents like SiCl

4 and SnCl

4 in the batch anio-

nic synthesis provided a way to broaden the MWD, adding a star-shaped struc-ture at the same time.

In order to maximize market share, automotive companies have conti-nuously developed vehicles with su-perior performance and durability (in-creased mileage). This has resulted in

SerieS On rubber — part 2

Styrene-Butadiene Rubber: A Techno-commercial Profile

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increasingly stringent tyre performance specifications. These have been partly met by redesigning the structure com-ponents (i.e. tread patterns and refor-mulating compounds). In spite of their resistance, tyre producers have found no alternative to s-SBR grades for highly specified tyre components for high performance tyres. The need for reducing fuel consumption led to the definition of specifications also for the rolling resistance of the tread material: in the US the CAFE (Corporate Aver-age Fuel Economy) regulations are gradually pushing in this direction. The market is getting more and more de-manding in the aforesaid specifications and such performances improvements cannot be achieved with e-SBR, mak-ing a gradual trend toward the use of s-SBR inevitable.

s-SBR grades now have comparable styrene content to emulsion types and these grades have superior mechanical properties e-SBR.

Typical e-SBRs contain 18% cis; 65% trans and 17% vinyl butadiene forms.

s-SBRs may be divided into two categories: Random copolymers (80%): The market for the random copolymers is completely dominated by the tyre industry (95%). These types are usually extended with compa- tible oil. They are blended with other types of rubber, including NR, and mixed with reinforcing fillers (carbon black and/or silica), oil and vulcanising chemicals to produce the tread compound where they im-prove wet grip and decrease rolling resistance, thus improving fuel con-sumption; Partial block types (20%): The par-tial block types are used in rubber flooring, carpet underlay, footwear and in many other applications.

They also find widespread use in bitumen modification and in adhe-sives.

Production technologyThere are three conventional routes

to producing solid SBR: Hot emulsion polymerization; Cold emulsion polymerization; and Solution polymerization.

Each process produces SBR grades with different properties.

Hot emulsion polymerizationHot emulsion polymerization is

the original SBR process. The major characteristic of this process is that these grades have exceptional process-ing characteristics in terms of low mill shrinkage, good dimensional stabi- lity and good extrusion characteristics. However, high levels of micro-gels are also produced, so there is a trend to-wards using the cold emulsion grades in many applications. However, they are still used in ap-plications such as adhesives and flow modifiers for other elastomers where good flow proper-ties are required.

Cold emulsion polymerization

Cold emul-sion polymeriza-tion produces SBR grades with superior mechani-cal properties, especially tensile strength and abra-sion resistance, compared to the grades produced by the hot emul-sion polymeriza-tion process. This

process has largely replaced the hot emulsion polymerization process for production of e-SBR grades.

Basics of emulsion polymerisationStyrene and butadiene monomers

polymerize in the presence of an emul-sifier (fatty or rosin acid soaps), an ini-tiator system, a modifier (mercaptan) and water. Initiator agent in case of cold polymerization is the redox reaction between chelated iron/organic peroxide and sodium formaldehyde sulphoxylate as reducing agent.

The MWD is primarily controlled by addition of mercaptan, which termi-nates the growing chains, besides initi-ating the new ones.

Polymerization takes then place at the mild conditions typical of emulsion polymerization, controlling at the same time the reactants flow rate up to the addition of the shortstop agent – when

Figure 1: Flow diagram of the e-SBR production process [Ref. 3]

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desired conversion is reached – which rapidly reacts with free radicals, block-ing reaction.

Residual butadiene and styrene are then removed from the short-stopped lattice, which is first stabilized by addition of appropriate antioxidants and then coagulated by using an inor-ganic acid and chemical aids to regulate crumb dimensions.

The coagulated crumb is then washed, dewatered, dried, baled and packaged.

The major cost in e-SBR manufac-ture is the purchase of monomers. The monomer price is dependent on the crude oil price, but can fluctuate quite widely due to other reasons.

About 70 % of e-SBR is used for the manufacture of car tyres, in particu-lar in the tread where it confers a good balance between wear resistance and wet grip. e-SBR is also used to manu-facture conveyor belts, flooring and carpet underlay, hoses, seals, sheeting, footwear and a large number of other rubber goods.

Solution polymerizationSolution polymerization grades

have superior mechanical proper-ties, particularly tensile strength, low rolling resistance and handling (encompasses traction under a vari-ety of conditions and performance at different speeds, when cornering etc.), when used in tyre applications. The ratio of butadiene configurations varies. Generally speaking, s-SBR grades have a lower trans and vinyl content and a higher cis-butadiene content than e-SBR grades.

s-SBR is of particular importance because of the improved performance and flexibility of the grade range. It is a preferred component with silica filler in

the so-called ‘green tyres’ which exhi-bit low rolling resistance and therefore improved fuel economy.

In initially making s-SBR grades producers attempted to replicate the stereochemistry of e-SBR grades. How-ever, solution polymerization differs from emulsion polymerization due to its flexibility and enables SBR grades with varying styrene/butadiene ratios and cis, trans and vinyl contents to be produced by varying the catalyst and the monomer ratios and process condi-tions. This enables s-SBR producers to produce grades specifically tailored for individual applications.

Most s-SBR producers have issued patents relating to various aspects of s-SBR production. However, there are basically two commercial processes used to produce conventional s-SBRs.

Phillips processCommercial Phillips processes are

batch (although the patents cover both batch and continuous polymerization) and produce a branched polymer with comparatively narrow molecular weight distribution. Phillips is no longer in the SBR business, but this process is being utilized by a number of European producers including Repsol, Petrochim and Dow in Italy. The process has been licensed by Petrofina in Belgium in the 1990s.

Firestone processThe Firestone process is continuous,

producing s-SBR grades with more or less linear chains and a comparatively broad molecular weight distribution.

Basics of solution polymerizationThe basic principles of the two solu-

tion processes are the same. s-SBR is made by termination-free, anionic (liv-ing) polymerization initiated usually by alkyl-lithium compounds. The ab-sence of a spontaneous termination step

enables the synthesis of polymers pos-sessing a very narrow MWD and less chain branching.

Solution rubber plants are generally integrated into larger production sites, which deliver the required feedstocks (solvent and monomers), electricity, steam, treated water and take back the solvents for purification or combustion. However, some plants generate their own steam and treated water and import the monomers and solvent.

Generally speaking, a solution di-ene rubber process can be sub-divided into the following process steps:

Purification of monomers and solvent; Polymerisation; Hydrogenation (if applicable); Blending section; Solvent removal; Product isolation; and Packaging.

The chemicals used are:

The monomers (styrene and buta-diene, in this case); The catalyst (usually n- or s-butyl lithium or Ziegler-Natta catalysts based on transition metals such as neodymium, titanium and cobalt); The solvent (commonly cyclohex-ane, hexane, heptane, toluene, cy-clopentane, isopentane or mixtures thereof); and Process additives like coupling agents, structure modifiers, extender oil, killing agents and product sta-bilisers.

Carbon dioxide, water, oxygen, alco-hols, mercaptans and primary/secondary amines interfere with the activity of alkyl-lithium catalysts, so the polymerization must be carried out in a clean, near-an-hydrous condition. Stirred bed or agitated stainless steel reactors are widely used commercially.

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Polymerization is carried out in a solution of inert aromatic or aliphatic solvent. The polymerization rate of butadiene in the presence of lithium-based catalyst is lower than styrene. However, when butadiene and styrene are mixed, the rate of polymerization is reversed, resulting in block copolymer production with a high proportion of butadiene blocks. Block formation may be suppressed since the property re-quirements of traditional SBR markets cannot be met by block copolymers. Random copolymerization is encour-aged by incorporating into the solution ‘randomising’ agents such as dialkyl and heterocyclid ethers, which act as Lewis base on the catalyst, or by con-trolled monomer charging (i.e. some of the styrene is added later in the poly-merization cycle).

The resulting copolymer is precipi-tated, separated, dried and baled.

Figure 2: Flow diagram of the s-SBR production process [Ref. 3]

Technical developmentsIn recent years, SBR developments

have predominantly been initiated by the tyre industry. This is not surprising considering several of the SBR produ-cers have put up their assets for sales in recent times (e.g., Polimeri in Europe, DSM in the US). This is partly due to the commoditization of the business and the butadiene price rise, which are difficult to pass on to the tyre industry. This has created severe pressure on margins for SBR producers.

Therefore, the majority of recent developments have been undertaken by the tyre companies themselves, rather than the SBR producers who were more active in the past.

Property optimization of SBR has been achieved, to some extent, by con-ventional s-SBR technology. By modi-fying the way in which monomers are added, the polymerization conditions and the use of co-catalysts and rando-mizing agents, the proportion of cis and vinyl isomers and the chain structure of the tailored polymers can be altered. Nevertheless, the overall properties of the tailored s-SBRs sometimes fall short of expected tyre industry requirements.

The automotive industry is under con-tinuous pressure to improve the environ-mental performance and the useful life of automotive components. s-SBR produc-ers are responding by modifying conven- tional s-SBR technology to develop grades with optimum combinations of rolling re-sistance, wear resistance, blow-out resis-tance, chipping/chunking resistance, road traction under a variety of weather condi-tions, handling, noise transmissions and other performance properties for different tyre applications.

There are a number of ways in which these improvements are being achieved: Reformulating compounds using high performance additives in conjunction with tailored s-SBR grades; Developing novel additives/modi-fiers that can be added to the SBR at the compound stage; Further modification of polymeriza-tion conditions to enable both block and random copolymerization; Introduction of post-polymerization steps to enable better control of co-polymer end-group structure, thus significantly altering the properties of the resulting SBR; Introduction of post-polymerization

steps to facilitate better interaction with the reinforcement system. This is one of the most radical developments affecting the rubber industry, since it enables silica to significantly displace carbon black as the favoured rein-forcement for tyre applications.

SBR is generally compounded with a vulcanization system, reinforcing fil-ler (usually carbon black), processing/extending oil, and an antioxidant/stabi-lizer package, prior to molding/fabrica-tion. Tyre compounds frequently use a combination of elastomers in order to achieve optimum properties in the final application.

Markets for synthetic rubber (SR)World consumption of SR grew by

4.6% in 2006 to reach 12.4-mt, compared to 11.9-mt in the previous year, and by a further 6.7% in 2007 to 13.2-mt. How-ever, the consumption in 2008 fell by 5%, compared to consumption in 2007, ac-cording to the International Rubber Study Group (IRSG). Global production of SR also fell by 5% in 2008 over 2007.

SRs share of the total rubber market edged up slightly from 56.7% in 2005 to 57.3% in 2006 and 57.5% in 2007. This share however, fell to 55.5% in 2008.

Consumption of SR in North America declined by 0.5% from 2.228-mt in 2005 to 2.217-mt in 2006 with the decline accelerating a further 3.5% in 2007 to 2.14-mt. The consumption in 2008 declined further by 11% to 1.89-mt, according to IRSG statistics. In contrast, SR consumption in Asia/Oceania grew by 9.4% from 5.24-mt in 2005 to 5.73-mt in 2006 and by 11.1% to 6.37-mt in 2007, but de-clined in 2008 by 4% in 2008. The European Union also recorded strong growth in SR consumption, increasing by 7.5% from 2.52-mt in 2006 to 2.71-mt in 2007, but declined by 6% in 2008.

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Table 3Synthetic rubber consumption

[kilotons]

20072008

20082009

Q1 Q2 Q3 Q4 Q1

North America 2,129 492 494 482 429 1,897 361

Latin America 864 222 228 233 207 890 180

European Union 2,514 692 678 543 459 2,372 419

Other Europe 1,014 249 256 233 174 911 168

Africa 105 29 27 26 23 105 22

Asia/Oceania 6,527 1,607 1,704 1,594 1,370 6,274 1,405

Total 13,284 3,314 3,411 3,142 2,719 12,586 2,566Source: IRSG

Table 2Synthetic rubber production

[kilotons]

20072008

20082009

Q1 Q2 Q3 Q4 Q1

North America 2,790 675 655 595 485 2,410 410Latin America 684 183 189 177 143 691 122European Union 2,684 688 674 602 538 2,502 495Other Europe 1,289 363 338 295 211 1,207 228Africa 71 21 22 19 17 78 16Asia/Oceania 5,916 1,454 1,577 1,493 1,403 5,926 1,453Total 13,434 3,383 3,454 3,180 2,796 12,813 2,724

Source: IRSG

Table 1Technical parameters for a typical s-SBR plant

Product type s-SBR, batch or continuous type

Reactor type and size Continuously stirred tank reactors in series or batch reactors, 10-100m3

Monomer addition Simultaneous addition of styrene and butadiene

Number of reactors in use Up to 10 depending on the process

Polymerization pressure Up to 5-bar

Polymerization temperature and control system

30-100oC; control system based in external evaporators, cooling coils, adiabatic

Catalysts/initiators Various anionic initiators (usually n-butyllithium)

Structure modifiers Various ethers, e.g. THF, TMEDA

Shortstops Water and/or fatty acids

Conversion of monomer to polymer 95-99%

Antioxidant p-Phenylenediamine derivatives, phenolic types, phosphite types

Extender oil Highly aromatic, treated distillate aromatic extract (TDAE), mild extract solvent

Capacity per reactor line Typically 30,000-tpa

Table 4World consumption of elastomers —

by region [2006]

Market size [tons]

Share[%]

Asia-Pacific 11,637 54

Europe 4,895 23

N. America 3,344 16

Rest of world 1,510 7

Total 21,386 100Source: Reference 4; IISRP

Table 5World consumption of synthetic elastomers — by region [2006]

Market size [tons]

Share[%]

Asia-Pacific 5,954 48

Europe 3,462 28

N. America 2,113 17

Rest of world 889 7

Total 12,418 100Source: Reference 4; IISRP

Markets for SBRSBRs are the largest-volume SR,

accounting for about 46% of world

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consumption of SR in 2006, accord-ing to the International Institute of Synthetic Rubber Producers (IISRP). Historically, this percentage had been steadily declining (it was 57% in 1976) because of the following major reasons:

The increasing popularity of radial tyres, which use less SBR and more NR than other tyre designs (e.g., bias-belted tyres); and

Faster growth of other SR as a sub-stitute for SBR (e.g., EPDM, nitrile and polybutadiene rubbers), espe-cially in non-tyre applications.

As a result, world SBR production and consumption showed little or no growth in the 1980s and 1990s, but have shown steady growth since 2000 with consumption steadily increasing as a result of growing consumption in emerging regions (such as China, India, South America, Russia and other parts of Asia).

With global demand of about 5.8-mt per year in 2006, SBR is the

most popular SR. However, demand for natural rubber (NR) is still higher.

SBR are the largest commodity rub-ber consumed in China, Western Eu-rope, North America, Japan and the Republic of Korea. China is the major consumer of SBR, followed by Western Europe, the United States, Japan and the Republic of Korea.

North America (United States and Canada) is the only region in the world that is expected to see a decrease in SBR consumption in the period from 2006 through 2011. The decrease is

due mainly to a decrease in tyre produc-tion – closing/idling of tyre plants and tyre p r o d u c t i o n moving off-shore.

Nearly, 70% of SBR is con-sumed by the automobile in-dustry for tyres and tyre pro-ducts where it

is most widely used in the manufacture of tread.

Industry structureGlobally, SBR is a fragmented in-

dustry with little leadership. The situ-ation in s-SBR is better than e-SBR, where there is generally more market discipline and technology is harder to obtain.

Global over-capacity in e-SBR has led to a flood of low cost exports from Eastern and Central Europe and Asia into North America and Western Eu-rope, which has depressed prices and production.

Healthy market for EuropeDemand for SBR in Europe was re-

ported to be healthy in 2007, with the tyre sector performing strongly. Total SBR demand in Europe is expected to grow around 2%/year with e-SBR growing at 1%/year and s-SBR by 4%/year.

The massive build-up of tyre capa-city in central and eastern Europe has continued. Manufacturers including Bridgestone, Continental and Pirelli are investing in extra production in Hun-gary, Romania, Poland, Slovakia and Russia over the next two years.

European SBR producers are fac-ing new EU regulations, due to come in force in 2010, which will prohibit the use of high aromatic oil-extended products in the manufacture of tyres. For vehicles sold in the EU, this means a phased switch from the 1712 grade, specifically for tyres, to grades using other products such as treated distillate aromatic extract.

China drives demandThe growth market in Asia is

China. According to China Chemical Reporter, Chinese SBR demand rose by 21% in 2006 to reach 747-kt. How-

Table 6World consumption of synthetic elastomers –

by type [2006]

Market size[kilotons]

Share[%]

SBR 5,775 47

Butyl rubber 3,311 28

EPDM rubber 1,664 11

NBR 620 5

Chloroprene rubber 496 4

Polyisoprene 312 3

High performance elastomers 240 2

Total 12,418 100Source: Reference 4; IISRP

Figure 3: World consumption of SBR by region

Source: SRI Consulting

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ever, production only increased by 11% to 571-kt, resulting in imports increas-ing by almost 60% to 187-kt.

Significant new SBR capacity is planned for China.

Lanzhou Petrochemical started up a 100-ktpa unit at Lanzhou in March 2008;

Bridgestone started up a 50-ktpa plant in Huizhou, Guangdong in Q2 2008;

Qilu Petrochemical is building a 100-ktpa facility at Zibo scheduled for 2009 completion;

A100-ktpa unit is being built by Du-shanzi Petrochemical in Xinjiang, due to for start up in 2010; and

A 200-ktpa facility is being built by Fushun Petrochemical in Liaoning, due to for start up in 2010.

Indian SBR marketsThere is no local production of SBR

in India (with the only plant of Syn-thetics and Chemicals at Bareilly (Ut-tar Pradesh), having closed down) and the entire requirements are being met through imports.

Imports have increased steadily to about 100-kt and are mainly from Taiwan, Korea, Russia, Thailand and Brazil.

Table 7Imports of SBR into India

[Kilotons]

Year Imports

2000-01 36

2001-02 49

2002-03 63

2003-04 76

2004-05 70

2005-06 93

2007-08 106

2008-09 100

According to reports, Japanese SBR producers are planning to re-enter India about 10 years after they moved out of the market to focus more on their stable domestic market and the burgeoning Chinese and Southeast Asian markets. JSR, for example, has been making at-tempts to offload their surplus stocks in India. Zeon, another producer, has also expressed interest to participate in the Indian market.

India is a spot-driven and price-sen-sitive market that usually does not hold much attraction for contract-oriented and higher-priced premium products. The Japanese SBR producers entered the Indian synthetic rubber market in the 1980s, but Korean producers sub-sequently dominated the market be-cause of a more competitive pricing strategy.

India’s proximity to Europe and the Middle East also attracts supplies of Iranian, Russian, Italian and German SBR.

Indian tyre industryTotal vehicle production including

two-and-three-wheelers in India stood at 10.8mn in the fiscal year ending March 2008, according to the Society of Indian Automobile Manufacturers, while the country’s current annual SBR demand is estimated at around 100,000 tons.

India is among the few countries in the world that has achieved self-suffi-ciency in manufacturing of automotive tyres. Little wonder, almost all inter-national auto-majors present in India have rolled out their vehicles on Indian- manufactured tyres. Interestingly, while

Table 8Imports of SBR into India

Quantity[Tons]

Value[Rs. Lakh]

Country 2006-07 2007-08 2006-07 2007-08

Argentina 1,430.28 278.9 973.38 207.47

Brazil 9,833.92 5,209.10 7,174.45 3,764.76

Taiwan 13,051.97 9,353.00 9,559.46 6,573.91

France 1,697.58 879.52 1,369.85 761.92

Germany 6,426.96 7,258.86 4,788.07 5,243.53

Indonesia 1,027.46 529.61 618.95 240.58

Japan 1,455.19 3,743.04 1,459.61 3,377.98

Korea 25,233.36 49,744.62 18,036.86 35,309.25

Russia 15,092.40 9,578.87 10,173.80 8,121.65

Singapore 1,192.49 21.13 614.82 16.41

Spain 819.27 789.76 700.63 751.88

Thailand 5,728.04 5,966.34 4,155.07 4,200.78

UK 2,041.88 4,256.33 1,481.55 2,636.32

USA 3,067.34 4,497.11 2,710.55 3,529.87

Total 93,015.09 106188.1 67,391.74 77,991.04

Source: DGCISNote: Only countries supplying more than 1,000-tons are listed

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the growth in auto sector has largely come from the entry of international auto giants, the concomitant growth in tyre industry has been driven largely by domestic majors.

The tyre industry is highly raw material intensive with raw materials accounting for 60% of industry turn-

over. The sharp volatility in raw ma-terial prices, in particular NR prices, has been the bane of the industry. The industry is also faced with a situation wherein import of rubber as raw ma-terial is discouraged, while import of tyres, as a finished product, is encour-aged. The import duty on NR is a hefty 20%, while that on tyres is 10 %. The

industry has repeatedly asked for rec-tifying this aberration of inverted duty structure, either by decreasing the im-port duty on NR or by increasing im-port duty on tyres.

Another area that is a cause of con-cern for the industry is the dumping of cheap tyres into the country. Subsequent to the economic meltdown and dip in demand in developed nations, countries such as China are looking at potential markets and India is seen as a lucrative one. Already, we have seen more than 1,000% increase in imports of tyres from China over the last few years.

The reason why the tyre industry is important is that it provides value-addi-tion in a long chain from the plantation (for NR) to the end-product (tyre). As much as 58% of the total NR produced in India is consumed by the tyre sector and roughly over 0.6-mn NR growers, are dependent on the tyre sector.

Table 9Indian tyre industry at a glance

Turnover Rs. 22,500-crore

Production (Tonnage) 1.175-mt

Production – All cate-gories (Nos.)

82.1-mn

Exports (Value) : Rs. 3,500-crore

Number of companies 36

Industry structure 10 large companies account for 95% of production

Radialisation Level - Current (as a % of total tyre production)

Passenger car tyres: 98% Light commercial vehicles: 18% Heavy vehicles (truck & bus): 8%

Figures are estimates for 2008-09

Table 10 Tyre production in India

[Lakh nos.]

Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Truck & bus 9,863 10,821 11,092 11,941 12,367 13,137 12,839

Passenger car 8,544 9,959 11,862 13,605 14,264 16,437 16,571

Jeep 1,384 1,440 1,462 1,272 1,368 1,467 1,469

Light Commercial Ve-hicles (LCV)

2,844 3,271 3,945 4,529 4,820 5,320 5,298

Tractor front 1,125 1,148 1,311 1,383 1,754 1,814 1,842

Tractor rear 825 842 1,096 1,134 1,296 1,234 1,315

Tractor trailer 470 415 408 596 823 886 758

ADV 456 295 197 325 381 409 281

Scooter 9,875 9,274 9,992 9,519 9,643 11,604 10,882

Motor cycle 15,654 16,688 18,127 21,053 26,079 27,921 30,148

Moped 185 168 124 55 0* 0* 0

Industrial 309 295 377 514 635 733 568

OTR 51 74 89 106 115 141 136

Aero 0 0 0 0 0 0 0

Total 515,585 54,690 60,082 66,032 73,545 81,103 82,107

Source: ATMANote: * From April 2006 moped tyre production included in scooter category

Page 9: Styrene Butadiene Rubber

Special Report

Chemical Weekly October 27, 2009 191

Raw materialsThe tyre industry is highly raw-

material intensive. Raw material costs accounts for about 63% of tyre industry turnover and 70% of production costs. The cost of rubber is the single largest component of raw material costs.

ReFeRenCeS1. Chemsystems PERP program,

New Report Alert, January 2004.2. Chemical Industries Newsletter,

SRI Consulting.

Table 13Composition of automotive tyres

Raw material Radial tyres1 Tyres2 Tubes3

Natural Rubber 34.8 44 5

SBR 0.06 8.604

Vinyl-pyridine latex 0.020 0.40

Polybutadiene rubber 12.36

Carbon black 22 23 30

Nylon tyre yarn/cordwrap/sheet/fabric

0.393 13

Bead wire 3.36 4

Butyl rubber 0 53

Steel tyre cord 15.48

Rubber chemicals 2 2 2

Zinc oxide 2 2 2

Misc. materials 7.5 8.0 8.0

Total 100 100 1001: Automobile steel belted radials per 100-kg tyre2: Automobile tyres reinforced with nylon/rayon tyrecord/wrap sheet per 100-kg3: Automobile tubes per 100-kg4: Includes SBR and PBR

Table 11Tube production in India

Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Truck & bus 7,982 8,851 9,439 10,522 11,257 12,016 11,911

Passenger car 4,762 5,331 5,947 6,990 8,509 11,490 10,773

Jeep 1,038 1,056 1,040 1,066 1,132 1,416 1,411

Light commercial Vehicles (LCV)

2,147 2,633 3,100 3,775 4,156 4,147 4,213

Tractor front 835 907 1,053 1,232 1,425 1,443 1,334

Tractor rear 231 187 140 165 213 181 184

Tractor trailer 5,750 5,624 6,439 7,044 7461 9,128 8,242

ADV 13,978 15,415 18,671 22,263 28,067 30,817 31,526

Scooter 176 270 347 227 0* 0* 0

Motor cycle 65 50 71 99 108 112 79

Moped 15 19 26 38 48 60 60

Total 36,979 40,342 46,273 53,421 62,376 70,810 69,733Note: * From April 2006 moped tyre production included in scooter category Source: ATMA

Table 12Raw material composition of tyres

Raw material Raw material cost [%]

Natural rubber 42

Nylon tyre cord fabric

16

Carbon black 11

Rubber chemicals 5

Butyl rubber 5

Polybutadiene rubber 6

SBR 5

Others 10

Total 100Represents cost as a percentage of total raw material cost

3. Best available techniques in the production of polymers, European Commission, Oct. 2006.

4. An overview of the high perfor-mance elastomers market, Martin W. Lee, High Performance Elasto-

mers Conference, Frankfurt, Ger-many 2007.

5. Polimeri Europa, Technical Bulle-tin on e-SBR process technology.

6. China Chemical Reporter, Feb 6, 2009.

[Lakh nos.]