Downstream products decide aids boom and environmental protection is the key to competitiveness

Antioxidant, accelerator, plasticizer and flame retardant agent  is  mainstream products of additives. Rubber accelerator and rubber antioxidant is the mainstream products of rubber additives . Antioxidant production in China accounted for 40% in 2010 and accelerator accounted for 35 percent. Plasticizer and flame retardant is the main plastics additives species, together accounting for about 50%.

Chemicals industry has a significant cyclical, downstream products industry restrict the chemicals industry boom. From the perspective of industry chain, PVC products is the main downstream of the plastic additives industry, accounting for about 75%, tires, rubber and other industrial areas are mainly downstream of the rubber chemicals industry, accounting for about 83% of upstream and downstream products the volatility of the industry boom of the chemicals industry, is expected to rubber chemicals industry, the growth rate of about 10%.

Overcapacity in the industry, competition will be fierce, the product has environmental advantages and broad prospects. From the capacity point of view, the 2011 China plasticizer production capacity of approximately 3.51 million tons, and consumption is about 2.2 million tons near the plasticizer production capacity far exceeds demand. 2011, rubber chemicals (not including processing aids) output of about 650,000 tons, the production capacity of approximately 948,000 tons, the significant excess capacity. Products and antioxidant capacity expansion and demand growth in the basic synchronization and supply will be tight in the future, to promote the agent's capacity is much larger than the demand, the future will become more competitive. European Union through the introduction of the Act of RoHS and REACH legislation to force the chemicals business to enhance the product's environmental products has environmental advantages and broad prospects.

International leader in industry consolidation to enhance the competitiveness of our country has a geographical advantage enterprises will gradually win. In 2009, the leading enterprises of the International Plastics Additives Ciba Specialty Chemicals, BASF acquired Rohm and Haas Dow Chemical acquisition, international giants to enhance their competitiveness through the powerful combination. From the perspective of regional distribution, the rubber chemicals business near the downstream tire industry production bases in Shandong and Jiangsu, the rubber chemicals business will have the obvious advantage of the region.