Polybutadiene rubber

Global demand for polybutadiene rubber (BR) may improve in 2013 as the automotive industries in China and the US recover from their lacklustre performance in 2012.

China, the world’s largest automotive market, saw a significant double-digit growth in its January 2013 vehicle sales. The US, the world’s second largest automotive market, has also recovered from the previous year’s lacklustre performance.

However, the sluggish automotive industries in India and Europe may continue to temper the global demand for BR in 2013.

BR is used in the production of tyres for the automotive industry.

India, which has been touted as a potential emerging growth market, has seen disappointing results in its auto sales. Rising fuel costs, high interest rates and lack of consumer confidence have weighed on demand for automotives in the Indian sub-continent.

Meanwhile, sales of tyres have dropped in the eurozone countries because of the region’s economic and political turbulence. The demand slump in Europe has prompted European BR producers to export their surplus stocks to Asia, which has pressured Asian BR producers to reduce their prices to compete with European suppliers.

Updated to mid-February 2013