Growth in TDAE production unlikely in China - report

ERJ staff report (DS)

Beijing -- China's production of TDAE oils is unlikely to grow in the near future, meaning domestic demand will be dependent on imports. TDAE is one of at least four different types of rubber extender oil which meets the PAH-content requirements of the EU. Others include DAE, MES and paraffinic oils

A report published in the China Chemical Industry News and reproduced on the website of the China Rubber Industry Association (CRIA) suggests that demand in China this year wil lbe 15,000 tonnes, up from 12,000 in 2010, but only 1000 tonnes will be made locally; the rest will be imported. The report said total extender oil consumption in China was around 787,000 tonnes in 2010, of which only 12.7 percent was clean oil. The industry did not expect much change in this proportion in the comoing year.

The report said non-compliant oils sell for around 6000 yuan/tonne, whereas the clean oils cost around yuan 9000/tonne.

The EU requires tyres sold in the EU to be made with compliant oils, but only one producer in China -- the Binzhou refinery of CNOOC -- is certified to the appropriate standards.

Furthermore, said the report, because the clean oils change tyre performance and processing characteristics, extensive product trials are needed, and this discourages Chinese tyre makers to develop products using the clean oils.

The report gives some examples of clean oil consumptino in proportion to aromatic oil consumption at different factories. For example, said the report, Shandong Triangle (Weihai) Huasheng Tyre Co., Ltd. uses around 700 tonnes of oil each month, of which 100 tonnes is clean and 600 tonnes contains standard PAH content

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Report from CRIA (Chinese language)

Above report auto-translated from Chinese