Demand for synthetic rubbers, which are used to manufacture tires, in Asian market is expected to recover from slump, following improvement in the economic condition in countries like China and India, according to a new report.
According to GBI Research's report, the demand for synthetic rubbers that include polybutadiene and styrene butadiene rubber (SBR)has slumped in the region due to reduced car manufacturing levels.
The report revealed that Asia-Pacific demand for butadiene, which is the chemical required to manufacture synthetic rubber, is expected to rise at a Compound Annual Growth Rate (CAGR) of 5.1% to 8,411 thousand tonnes in 2020 from the current 5,396 thousand tonnes in 2011.
Demand of butadiene in China is highest in Asia, representing 39% of the total amount and is expected to mount to 46% by the end of the 2020.
In 2014, acrylonitrile butadiene styrene (ABS) is expected to over take the polybutadiene and SBR demand and be the ideal end-use segment in the Chinese butadiene industry, the report revealed.
Due to industrial expansion and a strong importance on manufacturing, Asia is claimed to have the highest butadiene demand in the world.
The report revealed that Butadiene production in Asia-Pacific is expected to rise at a CAGR of 4.4% to 7,946 thousand tonnes in 2020 when compared to 5,594 thousand tonnes in 2011.
