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Lanxess Forecasts Tight Markets for Polybutadiene & Butyl Rubber

Here are two interesting presentations from Lanxess’s Capital Markets Day on September 16.

Business Unit Butyl Rubber – The Enabler of Mobility Ron Commander, Head of Business Unit

A few observations:

  1. Lanxesss sees tire fuel efficiency standards in Europe and tire fuel efficiency labeling programs in the US and Japan as major drivers for BR demand going forward. In particular, Lanxess feels that its LXS HP rubber can be useful in improving rolling resistance in tire treads.

  2. Truck tire retreading is also a leading driver for BR demand, especially as retreaders strive to improve fuel economy and extend the tread life of retreaded tires (which will promote demand for high performance elastomers).

  3. Coupled with tire labeling programs, the continued diffusion of hybrid and electric vehicles will promote consumer awareness of the rolling resistance ratings of passenger tires. The BR presentation forecasts that 40% of global car registrations in the year 2020 will be electric/hybrid.

  4. The butyl presentation highlights the growing middle class in the BRIC countries as a key driver, along with investments in road infrastructure and ongoing radialization.

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