Knowledge of Synthetic Rubber

What Is Synthetic Rubber?

Synthetic rubber, also known as synthetic elastomer, is a highly elastic polymer synthesized by man, and it is one of the three major synthetic materials. Its output is only lower than that of synthetic resins (or plastics) and synthetic fibers.

Types of Synthetic Rubber

Synthetic rubber can be divided into general synthetic rubber and special synthetic rubber.

The rubber with similar properties and applications to natural rubber, good processing performance and can be widely used in tires and other general rubber products is called the general type.

All rubber with special properties and specially used for specific occasions such as heat resistance, cold resistance, chemical corrosion resistance, solvent resistance and radiation resistance is called special synthetic rubber, but there is no strict boundary between the two.

Synthetic Rubber Advantages

The main purpose of industrial synthetic rubber materials is to save costs and improve the characteristics of rubber products. Because the price of general natural rubber products is relatively expensive, in order to reduce the cost of enterprises, a large number of low-cost synthetic rubber materials are invested.

Synthetic rubber materials also have excellent heat resistance, cold resistance, corrosion resistance and are less affected by environmental factors.

Company News in Synthetic Rubber Industry

1) Trinseo sells synthetic rubber business for US$491 million

On May 21, Trinseo announced that it had reached a final agreement with Synthos to sell its synthetic rubber business for US$491 million.

Trinseo's synthetic rubber business in Schkopau, Germany, will be transferred to Synthos SA and its subsidiaries. After deducting transaction-related costs, the net cash income is expected to be approximately US$400 million.

2) Bridgestone sells synthetic rubber plant in China

On June 15th, Bridgestone announced that it had reached an agreement with LCY Chemicals, deciding to sell all the shares of its subsidiary Bridgestone (Huizhou) Synthetic Rubber Co., Ltd. (BSRC), which produces synthetic rubber in China, to Li Changrong Chemical Company (LCY Chemical Corporation), the transaction value was not disclosed.

3) Sumitomo Chemical withdraws from EPDM rubber business

Recently, Sumitomo Chemical announced that it will stop the production of 40,000 tons/year of synthetic rubber ethylene propylene rubber (EPDM) at its Chiba plant, and terminate sales of this product at the end of March 2023. 

4) Trinseo acquires Arkema PMMA business for 1.137 billion euros

Trinseo is looking for potential customers to divest the synthetic rubber business. Bozich said: "Our synthetic rubber business is a very valuable asset. There are huge growth opportunities in the tire market. We believe that the industry will continue to develop and there are other parties that can better take advantage of these growth opportunities."

Global Synthetic Rubber Market Trends

1) The market value of liquid synthetic rubber will grow

Recently, Global Market Insight predicts that the market value of the liquid synthetic rubber market in 2019 will be US$10.54 billion, and it is expected to exceed US$12 billion by 2026, with a compound annual growth rate of 4.7% from 2020 to 2026. The increase in usage in many end-user industries, including construction, automobiles, paints and coatings, and electronic products, is the most important factor driving the overall market growth.

2) The automotive industry faces the pain of a rubber shortage

Although petroleum synthetic rubber is the first choice in some applications, the properties of natural rubber are crucial to products such as gloves and packaging tapes, and demand for both products has increased during the outbreak. As a key component in tires and anti-vibration components under the hood, the demand for rubber is even more prominent. 

3) IRSG predicts: rubber demand will increase by 7.1% in 2021

World synthetic rubber (SR) demand is expected to drop by 7.9% to about 14 million tons, and is expected to recover by 7.2% by 2021. IRSG said that in 2020, the global tire industry's demand for rubber will shrink by 10.2%, while the demand for latex gloves and other rubber in non-tire products will surge, and this figure will only drop by 5%.

4) IRSG: 2020 global rubber demand plummets by 12%

In 2019, the global demand for synthetic rubber was 15.18 million tons, down 1.0%. The IMF predicts that in 2022, the global demand for synthetic rubber is expected to drop by 14% to 13.06 million tons. In 2021, the global demand for synthetic rubber is expected to resume growth at 8% higher than the 7.8% of natural rubber.

Quality Synthetic Rubber Manufacturers

AURORA CHEMICAL CO., LTD 

AURORA CHEM is the world’s leading manufacturer and supplier of Xanthan Gum, Oil Driling Chemicals, Drilling Fluid Additives, Rubber Plastic Additives and Cosmetic Ingredients. AURORA CHEM has invested own plants to satisfy customers worldwide since the year 1997.