Styrene block copolymers (SBCs) are thermoplastic elastomers made up of polybutadiene, polyisoprene, and halogenated compounds. SBCs offer properties such as good flexibility, sealing ability, and high traction which are similar to natural rubber. The major SBCs are styrene-butadiene-styrene (SBS), styrene-isoprene styrene (SIS), and hydrogenated SBCs. Styrene block copolymers have better heat, weather, and chemical resistance as compared to natural rubber. In 2022, Styrene Block Copolymers were the most important and major TPE accounting for a market share of more than 45% of the global TPE demand.
Source: Secondary & Primary Research and Prismane Consulting estimates
In the forecast period, Styrene block copolymers is anticipated to continue their dominance on account of increasing demand from the footwear industry in the country especially for SBS. SBCs serve end-use industries such as Paving & Roofing, Footwear Industry, Adhesive Sealants & Coatings, Advance Materials [Polymer Modification] and others.
Kraton Corp, Asahi Chemical, Dynasol Elastomers, LG Chemical, Korea Kumho P.C., Chi-Mei, Kuraray, Lee Chang Yung, Hainan Baling Chemical, Versalis, Taiwan Synthetic Rubber Corporation, and Zeon Corporation are some of the major Styrene block copolymers manufacturers in the world. Kraton Corp is one of the leading Styrene block copolymers producers, operating SBC plants with installed capacity of more than 170 kilotons in the Americas and 170 kilotons in Western Europe.
The footwear application is a major consumer of Styrene block copolymers globally, with APAC accounting for the largest demand for SBC in the footwear segment in 2022. SBC is used in shoe soles to provide impact resistance. China dominated the region and the world in terms of SBC demand in the footwear application in 2022. Owing to the growing footwear production in the country, increased spending power, rising e-commerce, government initiatives, and a growing population will continue to drive the demand for Styrene block copolymers in the footwear application.
Source: Secondary & Primary Research and Prismane Consulting estimates
In the long-term forecast, Styrene block copolymers demand in China is projected to witness strong growth, mainly driven by the substantial Building & Construction and Footwear industries in the country. The demand for Styrene block copolymers in the paving & roofing application is propelled by the growing building & construction and infrastructure industry, government investments, rising urbanization, and economic growth.
China boasts the world's largest construction industry, and the country's infrastructure investments play a pivotal role in its economy. China's 14th five-year plan emphasizes the development of new infrastructure initiatives, including transportation, energy, water systems, and urbanization. The total investment in the country's infrastructure development is estimated to reach USD 4.2 Trillion during 2021-2025. In 2021, China allocated USD 573 Billion for Special Purpose Bonds to support local governments, and by December 2021, around 97% of this allocated amount was issued. These funds were primarily used for key areas determined by the Party Central Committee and the State Council.
In 2022, the Chinese government expanded its investment in rural road construction and initiated a new round of rural road construction, providing job opportunities for the rural population. The country aims to build a rural road network with improved road safety and transport services by 2023, with a total investment of around USD 14.76 Billion to generate 2 million employment opportunities. Additionally, China s urbanization is steadily increasing, with approximately 65.2% of the country s population living in cities in 2022. With growing spending power and government initiatives, urbanization in the country is expected to continue, further driving the demand for Styrene block copolymers.
India also contributed significantly to the growth of Styrene block copolymers demand in 2022, and it is projected to witness strong growth between 2023-2032 due to increasing investments in the country s infrastructure industry. The government has implemented several initiatives, including incentives such as production-linked incentives and Make in India, to boost the growth of the infrastructure sector.
Furthermore, the National Infrastructure Pipeline Project, worth USD 1.3 Trillion, is at various stages of implementation in the country, offering numerous opportunities for infrastructure investment. For example, the Indian government and the government of Dubai have partnered to build infrastructure in Jammu & Kashmir, including an Industrial Park, IT Towers, Logistics centers, medical colleges, and specialized hospitals. Both countries signed the contract in October 2021.
In April 2023, Baling New Material and Sinopec Hainan Refining & Chemical Co., Ltd. successfully launched the operation of a 170-kiloton Styrene block copolymers production capacity. The companies jointly invested around USD 279.74 million to produce 120 kilotons of SBS and 50 kilotons of SEBS products.
In June 2023, Kraton Corp. announced the expansion of its Styrene Block Copolymers (SBC) plant located in Berre, France. By expanding the existing facility, the company is set to produce, up to 100% ISCC PLUS certified renewable SBC as part of the CirKular+ ReNew Series.
In March 2023, Kraton Corp. revealed plans for an expansion of its production SBS capacity by 24 kilotons at its Belpre, USA plant, set to commence in 2024 to cater to increasing demand for SBS demand in North America.
In 2022, Dynasol Group (JV between KUO and Repsol) announced to expansion of the production capacity of its Styrene block copolymers facility in Altamira, Mexico by 10 KTA.
Voronezhsintezkauchuk (SIBUR) operates a Styrene Block Copolymer plant in Voronezh, Russia with an installed capacity of 135 kilotons as of 2022. By the end of 2020, the company increased SBS production capacity from 85 kilotons to 135 kilotons an increase of 50 kilotons to cater to the growing demand of Styrene block copolymers from the Building & Construction, and footwear industries. The company exports around 35-55% of Styrene block copolymers produced to the neighboring countries. The company is increasing up production of TPE (SBS polymers) to cater to the increasing demand and improve the quality of output in road construction, roof coating, and footwear production.
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