Butadiene rubber (BR) market demand is strong and industry concentration is high

Butadiene rubber (BR), also known as cis-1,4-polybutadiene rubber, is a subdivided product of polybutadiene rubber. Butadiene rubber generally refers to synthetic rubber with a cis structure content of more than 95.0%. It has the advantages of aging resistance, cold resistance, wear resistance, etc., and is widely used in the manufacturing of tires, rubber shoes and other products.

According to the “2022-2027 China Butadiene Rubber Industry Development Prospects and Investment Risk Avoidance Suggestions Report released by the Industrial Research Center, As the severe situation of the COVID-19 epidemic is gradually brought under control, major butadiene rubber production companies have begun to resume work and production, leading to a gradual recovery in my country’s butadiene rubber production. In 2021, my country’s butadiene rubber output reached 1.062 million tons, a year-on-year increase of 1.8%. As market demand gradually releases, the demand for butadiene rubber will further increase, causing the price of butadiene rubber in my country to continue to run at a high level. In November 2021, the price of butadiene rubber in my country reached 15,961.0 yuan/ton, setting a record high.

Based on the type of catalyst, butadiene rubber can be divided into five categories: titanium series, nickel series, cobalt series, lithium series and rare earth series (neodymium series) butadiene rubber. According to the different cis structure content, butadiene rubber can be divided into three categories: low cis, medium cis and high cis butadiene rubber. Rare earth butadiene rubber has the advantages of flex resistance, wet slip resistance, high strength, etc., and its overall performance is better than other types of butadiene rubber. However, due to the high cost of raw materials and difficult production technology, the output of rare earth butadiene rubber in my country is relatively high. Low and unable to meet local market demand.

In terms of import and export, butadiene rubber has a wide range of applications and is in strong demand in the global market. my country is the world’s largest producer and consumer of butadiene rubber. Driven by factors such as strong market demand, high-end products such as rare earth butadiene rubber and low-silicon butadiene rubber must rely on the import market. According to statistics from the General Administration of Customs of China, in the first half of 2022, my country’s import volume of butadiene rubber was 80,000 tons, a year-on-year decrease of 18.3%; the export volume was 65,000 tons, a year-on-year increase of 28.1%. South Korea and Japan are my country’s main importers of butadiene rubber, while Southeast Asia is my country’s main exporter of butadiene rubber.

Driven by policies such as deepening the supply-side structural reform, China’s small and medium-sized butadiene rubber production enterprises with backward production capacity are gradually eliminated by the market, and the concentration of the butadiene rubber industry continues to increase. China National Petroleum Corporation and China Petrochemical Corporation are my country’s leading butadiene rubber companies. Among them, Sinopec accounts for nearly 30% of my country’s total butadiene rubber production capacity.

Industry analysts said that butadiene rubber is the second largest synthetic rubber after styrene-butadiene rubber, with excellent performance and wide application Extensive advantages. my country is the world’s largest producer and consumer of butadiene rubber. Driven by market demand, the scale of my country’s butadiene rubber industry will continue to expand. As a subdivided product of butadiene rubber, rare earth butadiene rubber has broad application prospects. With continuous breakthroughs in research and development technology, the industry will continue to develop in the future.