Domestic butadiene rubber market has become more competitive

On September 7, 2015, LANXESS Germany's 140000-ton/year lanthanide butadiene rubber plant was officially put into operation. The new unit is mainly supplying the growing Asian market. As the world's largest tire producer, the Chinese market will undoubtedly become The main destination of its products. In recent years, more and more foreign companies have set their sights on the Chinese market. The number of China's imports of butadiene rubber has been increasing day by day, and the competition between imported and domestic products has also become increasingly intense.

Customs data show that from January to August China's total imports of butadiene rubber was 58,500 tons, an increase of 29.0%. In just a few months, China's dependence on imports of butadiene rubber has steadily increased from about 7% in 2014 to about 10%, gradually squeezing the original market share of domestic butadiene rubber.

The reason why imported products are increasingly favored is their superiority in cost competitiveness and product quality. The first is the cost. In August 2015, the average import price of China's butadiene-butadiene rubber was US$1,771/ton, which was a drop of about 25% compared with US$2,360/ton in early 2014, while the domestic price of butadiene rubber fell by only 11% in the same period. %. At present, although the prices of domestic products are still relatively competitive with those of imported goods, the price difference between the two products has been reduced by about 12% since the beginning of last year, prompting downstream buyers to pay more attention to foreign products. In addition, foreign sources also enjoy certain preferential tariffs on import duties. Following the Singapore products’ payment of no customs duties, cis-butadiene rubber imported from South Korea also enjoys zero-tariff policy preferences after the signing of the Sino-Korea Free Trade Agreement, which also adds import sources. Attractive.

On the other hand, imported goods have a slight advantage in product quality. Take the newly-launched LANXESS Singapore device as an example. The device uses advanced rare-earth lanthanide catalysts and is environmentally safe. It is an ideal raw material for green tire sidewalls and treads. In promoting green environmental protection today, green tires have increasingly attracted the attention of manufacturers. According to foreign media forecast, China's green tire market share will be increased to 50% by 2020, EU and other places have greater demand, and ordinary butadiene rubber products can not meet the performance requirements of manufacturing green tires, highlighting the advantages of rare earth products .

In contrast, China's butadiene-butadiene rubber industry had a production capacity of about 1.7 million tons in 2014, but the output was only about 900,000 tons. In terms of product quality, the domestic homopolymerization of butadiene rubber is more serious. Except for a small amount of 30,000 tons/year of rare earth butadiene rubber equipment such as Yanshan Petrochemical, most of them still can only produce ordinary butadiene rubber products, in terms of product quality. At a disadvantage. In the face of unsatisfied downstream demand and pressure from imported sources, manufacturers only have limited production prices. Currently, the operating rate of domestic butadiene rubber equipment is only around 50%, which can be described as miserable.

In summary, with the successive production of foreign butadiene rubber devices, more rubber manufacturers will hope to launch products into the Chinese market. In the long run, environmentally-friendly and high-performance butadiene rubber products will be the overall development trend of the industry. Domestic manufacturers can only explore and master high-end brands of production technology, improve product quality, ability to turn the tide, in the domestic and foreign competition Grab the high ground.

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