Asia’s synthetic rubber sector is expected to recover from the slump after the car production has dropped, according to a report from the Petrochemical experts GBI Research.
The demand for synthetic rubber, commonly used in tyre production has fallen since the level of car manufacturing dropped, but as the Asian economies such as China and India get back to the race, the demand for synthetic rubber will come back.
The Asia-Pacific demand for synthetic rubber is expected to jump to 8,411 thousands tonnes in 2020 with a Compound Annual Rate of 5.1%.
China is still the large importer of synthetic rubber in the region, getting a share of 39% of the demand which is expected to rise to 46% by the end of 2020. However, the GBI Research is anticipating that the acrylonitrile butadiene styrene (ABS) to become the first type of rubber to be used in the Chinese Butadiene industry in 2014.
ABS is thought to be the country’s fastest growing butadiene segment because of its function to household appliances, automotive and electronics which are all expected to grow at the end of the decade.
The Asian region has the highest demand for butadiene in the world as the industries are expanding. Butadiene production in the Asia-Pacific is 5,594 thousands tonnes last year and is predicted to jump higher at a Compound Annual Growth Rate of 4.4% to 7,946 thousand tonnes in 2020.