Nitrile Rubber           

*Thousand metric tons per year of solid (S), latexes (L), and hydrogenated (H) nitrile rubber (NBR) capacity. NBR rubbers are emulsion-polymerized copolymers of acrylonitrile and butadiene. Some plants are multi-purpose, having flexibility for nitrile or styrene-butadiene elastomer.

In 1998, Uniroyal entered a JV with Girsa, a subsidiary of DESC SA de CV, to produce nitrile rubber products in a new 40,000 m.t. facility in Altamira, Mexico. Production is managed by Nitrilo S.A, and marketing is handled by ParaTec Elastomers in the US. Uniroyal later closed its 20,000 m.t. NBR production facility in Painsville, OH, in mid-1999.

In 1999, Zeon acquired DSM Copolymer's NBR business. DSM continues to produce the NBR at its Baton Rouge, LA, plant, and Zeon is responsible for marketing, and customer and technical services. Also in 1999, Zeon acquired Goodyear's NBR business. 

In mid-2000, Goodyear closed their NBR production unit in Houston, Tex., eliminating 28,000 m.t. from the market. The previous year, Goodyear had sold its NBR business to Zeon.

Profile last published 3/27/00; this revision, 6/17/02.

DEMAND
2000: 81.3 thousand metric tons; 2001: 82.3 thousand metric tons; 2005: 84.0 thousand metric tons, projected. Demand equals production plus imports (2000: 57.1 thousand metric tons; 2001: 52.2 thousand metric tons) less exports (2000: 41.3 thousand metric tons; 2001: 43.7 thousand metric tons).

GROWTH
Historical (1996 - 2001): -0.2 (negative) percent per year; future: 0.5 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $1.25 per pound, list, medium-low acrylonitrile content, bulk, works; low, $1.25. per pound, same basis. Current: $1.25 per pound, same basis; medium-high acrylonitrile, $1.35 per pound.

USES
Hose, belting and cable, 28 percent; O-rings and seals, 20 percent; latex applications, 14 percent; molded and extruded products, 14 percent; adhesives and sealants, 10 percent; sponges, 5 percent; footwear, 4 percent; other, 5 percent.

STRENGTH
Nitrile rubber is highly resistant to petroleum products such as gasoline, diesel oil and other fuels over a wide temperature range. NBR is also noted for high strength and excellent resistance to abrasion, water, alcohols and heat. Special forms of NBR continue to grow in importance. Powdered NBR finds widespread use in polyvinyl chloride and ABS resins as an impact modifier in such products as automotive dashboards and kick panels. Industry consolidation has strengthened the remaining suppliers and eliminated a net 12% of the installed capacity.

WEAKNESS
Only modest overall growth can be expected in nitrile rubber. With 50 percent of its end-use in automotive components, NBR is overly dependent on that cyclical industry. NBR latex has lost market share to styrene-butadiene and acrylic latex products in non-woven fabrics and some paper applications. Competition in hose and belting markets is intense, although superior oil resistance gives NBR the edge in some hose applications.

OUTLOOK
Nitrile rubber consumption in North America is expected to continue to be relatively flat, achieving 0.5 percent per annum though 2005. Global growth should be significantly better at approximately 3 percent per year.