◎ Gao Bo

After the whets of environmental protection tides, the rubber chemicals industry sharply improved its environmental protection level and the industry-wide operating rate was recovered in 2018. The hot issue the industry pays attention to has gradually transformed from “stable supply” in the first half year to how to keep “stable benefits” of the industry. In addition, the rubber chemicals enterprises constantly input a large amount of manpower and material resources in the aspects such as technical innovation, market service and industrial layout, the micro-reaction channel technology realized industrialization and the whole industry took another firm step in the road to a powerful country.

Industrial Operation: The sales revenue had a large growth

According to the statistics of CRIA Rubber Chemicals Special Committee on key member enterprises (same below), in 2018, the total output of rubber chemicals was 1.1725 million tons, with a year-on-year (same below) growth of 2.8%, thus ensuring stable supply of the whole industry; the sales revenue was 25.41 Billion Yuan, with a growth of 17.8%, which was mainly contributed by the first three quarters; the total industrial output value was 25.6 Billion Yuan; and a certain amount of inventory was kept. The export volume had a negative growth of 7.6%, with a fall of 25,000 tons, the export rate (volume) fell to be 26.5%, which was mainly caused by sharp reduction in export volume of medium and small-sized enterprises; the export value increased by 18.6% and the export rate (amount) was 30.2%, which was mainly caused by sharp growth in share of first-rate enterprises in export volume and relatively high export price.

See Table 1 for main economic operation conditions of China’s rubber chemicals industry in 2018.

Table 1: Main Economic Operation Conditions of Rubber Chemicals Industry

Note: The statistics data is from CRIA Rubber Chemicals Special Committee.

See Fig. 1 for growth trend of total output of rubber chemicals under the statistics of CRIA from 2002 to 2018. During the period, 2003~2004 were in a phase of high-speed growth; fluctuation started to appear in 2015, but the overall trend was still growing, only with reduction in growth, and the rubber chemicals industry entered the phase of slight growth, which matched with the development trend of China’s automobile and tire industries.

Fig. 1: Growth Trend of Total Output of Rubber Chemicals from 2002 to 2018

Fig. 2 shows the change curve of average price (sales revenue/total output) of the industry under the statistics of CRIA. The period before 2005 was the development phase of China’s rubber chemicals industry from small to large, and demand exceeding supply is the feature of this phase, and the price of rubber chemicals went up all the way; after 2005, the demand-supply relationship in rubber chemicals market began to lean, and the market layout of oversupply gradually appeared and the price also fell; from the next half year of 2016, along with the launch and implementation of new environmental protection laws of the nation, under heavy impact of environmental protection tide, in 2017, the operating rate of rubber chemicals industry had a relatively sharp fall, in addition, some raw materials of rubber chemicals were in a short supply under the influence of environmental protection, some rubber chemicals products had a tense supply, thus the price had a rational return.

Fig. 2: Change Conditions of Average Price of Rubber Chemicals

The trend in 2017 continued, in the first three quarters of 2018, the operation of rubber chemicals industry was in a good state. Along with improvement of environmental protection level of the enterprises, the operating rate was constantly released, some products had the trend of over-supply, thus the price had a rapid fall. Seen from Fig. 2, the price of the year 2018 was greatly improved, but the price trend in the fourth quarter was weak, thus bringing about uncertain factors to the market of 2019.

According to the statistics of the output and sales revenue of 47 key member enterprises, the industry concentration ratio continued to be improved, and top 10 enterprises were obviously stronger than the level of the whole industry. According to the sales revenue, it is calculated that: top 10 enterprises accounted for 66.8% and top 20 enterprises accounted for 84.5%; according to the output, it is calculated that: top 10 enterprises accounted for 61.9% and top 20 enterprises accounted for 80.4%.

In 2018, the per capita sales revenue of the industry reached 1.564 Million Yuan, with a growth of 12.8%, among it that of top 10 enterprises was 1.638 Million Yuan, 4.7% higher than that of the whole industry, which indicates that the industry had a progress year by year in the aspects of automation and enterprise lean management. Jiangyin Sanliang Rubber and Plastic New Materials Co., Ltd. had the highest per capita sales revenue, which reached 4.428 Million Yuan; and Red Avenue New Materials Group Co., Ltd. had the second highest per capita sales revenue, which reached 3.616 Million Yuan. Those with a per capita sales revenue of over 2 Million Yuan also included Nanjing Shuguang Chemical Group Co., Ltd., Nanjing Chemical Industry Co., Ltd., Ningbo Actmix Rubber Chemicals Co., Ltd., etc.

Development Features: Cleaner Production and Intellectualization

In 2018, environmental pollution and safety production were still two risks faced by the enterprises, and affected the existence and development of the enterprises. Therefore, the industrial development will still take cleaner production and energy conservation and emission reduction as the center to promote greening and intellectualization. The main features are as follows:

Firstly, the environmental protection level was improved and the capacity was recovered to break through the record of highest monthly output. Under the influence of the cleaner production concept advocated by Rubber Chemicals Special Committee for years, in 2018, the input of the backbone enterprises in the industry in environmental protection and safety achieved good effects. The back-bone enterprises took the opportunity of entering the park and zone to upgrade the level of technology, environmental protection and safety, especially the innovation in accelerant process and “three wastes” recycling technology greatly improved the environmental protection level of rubber chemicals industry and made the industry keep a good operation state under the high pressure of environmental protection and break through the monthly output of 120,000 tons in October.

Secondly, constantly carry out technical innovation and promote green chemical process. In the aspect of innovation of technological process, industrialization in micro-reaction channel technology was realized. In May 2018, onsite exchange on industrialization of micro-reaction channel of Weilin New Materials and Stair Chemical was held, the accelerant TBzTD and the anti-aging agent TMQ achieved continuous and automatic production of micro-reaction channel to lay a good foundation for intelligent development of the industry in the future. In the technological innovation of cleaner production, the leading and backbone enterprises increased the technological innovation input in the fields such as accelerant, anti-aging agent and vulcanizing agent, independent innovation of the enterprises became a proactive action and formed the true source power for industrial development.

The key technologies and common technologies that still need to be solved at present are: firstly, the research and development of cleaner production process mainly focuses on development and promotion of the cleaner production process of the accelerant MBT as well as oxygenating and peroxide oxidation process of sulfenamide accelerants, innovation and promotion of continuous production technology and micro-reaction channel technology of high thermally stable insoluble sulfur, etc. Secondly,  industrialized promotion of micro-chemical reaction channel technology. Thirdly, industrialization of cleaner production process technology by pipeline continuity method, even innovation of composite reaction technology combining micro-reaction, pipeline reaction and kettle reaction. Fourthly, break through the bottleneck in research and development of new products to research and develop more new products. Fifthly, innovate eco-friendly and ultra-low emission technologies, such as VOCs and ultra-low emission standard.

Thirdly, constantly perfect the standardization system of rubber chemicals industry. In 2018, CRIA carried out the formulating work of the group standard Rubber Accelerant TBBS, deeply explored the innovation of product standard and highlighted the technological indexes of product effect, and the first draft of the standard had been completed.

Target of 2019: Environmental Compliance and Stable Benefits

In 2019, the largest difficulty of rubber chemicals industry will be co-existence of environmental compliance and “stable benefits”. Since environmental protection factors have many uncertainties, continuing to improve the environmental protection survival ability of the leading and backbone enterprises is still the key work of the industry; “stable benefits” is the basis for sustainable development of the industry, which is also indispensable.

Although the enterprises showed a good level in responding to the national supervision on environmental protection in 2018, the “Blue Sky Protection Campaign” of the nation still continues and VOCs and ultra-low emission standards are also under intensive development, therefore the enterprises still need to enlarge the innovation input in environmental protection, including source innovation and end treatment innovation.

Innovation is the source power for enterprise development, which requires input of a large amount of manpower and material resources as well as support of “stable benefits”. In 2019, CRIA will continue enhancing the communication between the leading backbone enterprises, strengthening the building of communication platform for upstream and downstream industrial chain, publicize and implement the importance and necessity of “stable benefits” for industrial development and gradually transform this concept into a proactive action of the enterprises.