Global Styrene Butadiene Rubber Market Expected to Record CAGR of 6% during Forecast Period

Monday 20 February 2012, Amsterdam

The report provides the reader with detailed analysis and forecasts of the major economic and market trends affecting global SBR demand in the major global regions. It also provides analysis and description of the major drivers and restraints affecting SBR demand in various regions. Global SBR demand is assessed in terms of end-user segments, price, and a competitive landscape, at both regional and country level. Overall, the report presents a comprehensive analysis of the global SBR market covering all the major parameters. The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by a team of industry experts.

Global Styrene Butadiene Rubber Market Expected to Record CAGR of 6% during Forecast Period

The global demand for Styrene Butadiene Rubber (SBR) has been steadily increasing during the last 10 years, from 3,286,677 tons in 2000 to 4,571,201 tons in 2010. A significant portion of this increase in demand for SBR was from the Asia-Pacific region, and the same trend is expected to continue in the near future. Global demand for SBR is expected to further increase at a CAGR of 6% during the forecast period, to reach 8,201,902 tons by 2020.

See figure: SBR, Global Demand by Volume (Tons), 2000–2020

China to Drive Global SBR Demand in the Future

China has rapidly emerged as a global petrochemical products manufacturing hub. Production in China enjoys the advantage of lower operating costs, and as a result a huge potential for SBR capacity addition exists in the country. Demand and production of SBR is also rising in China, due to increased demand from end-use sectors such as tire, construction, automotive goods, mechanical goods, footwear and so on. China also imports a considerable amount of SBR in order to produce various SBR downstream products. Demand from China is currently driving the Asia- Pacific market’s demand for SBR; however, South Korea and India are also expected to drive regional SBR growth rates in the near future.

Tyre, Footwear and Construction Sectors Led Demand for SBR from End-Use Segments in 2010

Tyre, footwear and construction sectors, with 3,363,045 tons, 315,770 tons and 247,000 tons of demand respectively, were the leading end-use segments for SBR in 2010. Together they account for more than 85% of global SBR demand. In terms of end-uses of SBR, a similar trend is expected to continue throughout the forecast period.

Increased Growth of Solution Type SBR (S-SBR) from Tire Industry to Drive the Demand for SBR

The tire industry uses both emulsion SBR (E-SBR) and S-SBR for manufacturing. Historically, ESBR was more popular than S-SBR due to its superior processing properties. In addition, the superior interchangeability among the various grade of E-SBR made it easier to switch between suppliers without any re-configuration of the processing machines and procedures. However, the global increasing need of high performance tires which increase fuel efficiency, reduce rolling resistance, provide high traction during braking and so on, is driving the demand for S-SBR from the tire sector. S-SBR processing makes it possible to meet the increasingly stringent requirements or specifications for high performance tires which cannot be achieved with E-SBR.The replacement of E-SBR with S-SBR is also being accelerated in the EU region, which is coming up with new labeling rules by 2012. Therefore, the growth rate of S-SBR segment is expected to be higher than E-SBR in the future.