Synthetic: to enter the peak production year

Jan. 28 from China Synthetic Rubber Industry Association that, at home to tire as represented by the rapid development of rubber processing industry of driving under the 2007 Synthetic booming production and marketing industry, all were products seller's market. The market outlook in 2008, the Association of Synthetic Qirun-Secretary-General said that this year is the "11th Five-Year Plan" Synthetic installation of the first peak in production during the year Synthetic production capacity will increase more than 400,000 tons, the national total production capacity will be expanded to 2,000,000 Tons. Qirun Tong stressed that the supply of butadiene not increased by a large margin, a large number of devices Synthetic butadiene production will be increased raw material supply situation; at the same time the domestic market for new devices Synthetic products meet the need for a process of synthesis Plastic-related enterprises should be carried out ahead of time to open up the market.

According to the China Synthetic Rubber Industry Association statistics, in 2007 the National Synthetic production of 1,633,000 tons (in addition to isoamyl rubber outside of the basic kinds of rubber and thermoplastic styrene-butadiene rubber SBS), a production last year 174,000 tons, an increase of 11.9 percent. Compared with the previous year, with the exception of butyl rubber plant as a result of a unified arrangements for production and repair 5.4 percent, the other types of rubber production are higher. Among them, and SBR rubber production increased a total of 155,000 tons, accounting for 89% of the total output. In 2007 all major types of rubber production are as follows: SBR 701,000 tons (one-dissolved SBR 54,000 tons), an increase of as much as 20.7 percent; butadiene rubber output of 481,000 tons, an increase of 7.9%; SBS output of 302,000 Tons, an increase of 4.4 percent; neoprene production of 52,000 tons, an increase of 7.7 percent; acrylonitrile-butadiene rubber production of 40,000 tons, an increase of 15.4 percent; ethylene-propylene rubber output of 20,000 tons, an increase of 0.5 percent; butyl rubber production of 37,000 tons.

By the high price of natural rubber and pulling the market demand driven, in 2007 the lower reaches of the industry Synthetic surge in demand, particularly in larger capacity, the supply of better protection of domestic SBR, butadiene rubber demand. According to the Association of Synthetic estimated that in 2007 the National Synthetic consumption of 2,960,000 tons, an increase over last year 280,000 tons. Of these, seven basic kinds of rubber consumption of 2,210,000 tons, an increase 315,000 tons; SBR, SBS and rubber consumption was 940,000 tons, 686,000 tons and 470,000 tons more than last year increased 120,000 tons, 106,000 tons and 07,000 tons. Synthetic production at a higher rate of increase, is still in short supply.

According to the Association of Synthetic analysis, in 2008 China Synthetic market will face the situation as follows:

Into the peak production period in 2008, is located in Lanzhou, Gansu, Guangdong's Huizhou plant SBR, Jiangsu's Nantong SEBS (hydrogenated SBS) and butadiene rubber plant and other projects will be completed and put into production, coupled with the expansion of SBS Maoming and Shanxi neoprene, Jilin ethylene-propylene rubber and other new devices, new this year, China Synthetic plant capacity will be more than 400,000 tons, at the end of the National Synthetic devices will exceed the total capacity of 2,000,000 tons, the downstream user to select Synthetic made to provide more opportunities.

However, due to capacity constraints in the country this year butyl rubber, ethylene-propylene rubber, nitrile rubber, neoprene, plastic isoamyl will continue to be the shortage of products on the market.

The market has to digest the process of Qirun Tong said that this year's SBS and SBR in the new capacity of about 150,000 tons, may be higher than the domestic market to absorb the capacity, short-term product supply capacity may be too large. Domestic rubber processing enterprises of different production of different grades of Synthetic use of a process of adaptation, not to say that the production capacity up, you can immediately replace imported products. In his view, the market for a short period of time such a large number of incremental Synthetic have a balance of the digestive process. To this end, he suggested that Synthetic manufacturers should take active measures on the one hand to carry out the work to replace imported products, on the other hand, actively seeking to export channels, as soon as possible the establishment of mechanisms for export, China Synthetic products to the world.

Due to tight supply of raw materials will be the year of ethylene capacity is not a major growth in the domestic supply of butadiene will be only a slight increase in 2007. Synthetic a large number of new installations put into operation, will enable the supply of butadiene tight, the price is likely to continue strong.

It is reported that in June 2007 with the Nanjing Yangzi Petrochemical Co., Ltd. rubber Kimpo 100,000 tons / year of the new SBR plant production, domestic consumption of butadiene supply and demand balance has changed. Second half of last year, butadiene imports began to rise, the market prices to edge upwards. According to the Association of Synthetic estimated that in 2007 domestic production of butadiene to 1,360,000 tons, from a net import volume in 2006 of 62,000 tons of pick-up in 2007 to 86,000 tons. At the same time, the market price of butadiene from the 2007 high at the beginning of the year to the whereabouts of the trough after the end of the year rose to a new high.

Completed and put into production in 2008 as a result of the new Synthetic devices, supporting projects in the early design of butadiene has been the basic resources into the consumer market, the new production unit did not add too many resources butadiene, Qirun pass of the view that in 2008 domestic Succinimide -Imports will continue to rebound, the market prices will continue strong.