Global Halogenated Butyl Rubber (HIIR) Market, 2023-2028
Halogenated butyl rubber is an enhanced form of regular butyl rubber that is produced through the reaction between butyl rubber and halogenating agents. This process results in the formation of chlorinated and brominated butyl rubber. The resulting halogenated butyl rubber is typically found in the form of white to light amber blocks.
Halogenated butyl rubber possesses several desirable characteristics, including fast vulcanization speed, good compatibility with other unsaturated rubbers, and high self-adhesiveness and mutual adhesiveness. As a result, it finds primary application in the inner liners of tubeless tires. Additionally, it is used in heat-resistant hoses and conveyor belts, pharmaceutical bottle stoppers, shock absorbers, adhesives, and sealing materials.
In recent years, the prices of halogenated butyl rubber have reached their highest levels in nearly five years, experiencing a 14% increase compared to the previous year. The global production capacity of halogenated butyl rubber in 2022 is estimated to be approximately 1.64 million tons, with a production volume of 1.16 million tons and a consumption of 1.13 million tons. The global market size is projected to grow from $3,644 million in 2022 to $5,038 million in 2028, with a compound annual growth rate (CAGR) of 5.5%.
Segmentation & Insights
The global halogenated butyl rubber market can be segmented into the key application categories of pharmaceutical closures, tires, and other uses. Of these segments, tires accounted for the largest share of revenue generated in the halogenated butyl rubber market in 2022, representing approximately 90% of total market value.
The vast majority of demand for halogenated butyl originates from the automotive industry, where the rubber is used in inner liners and inner tubes of tubeless tires. Halogenated butyl provides an airtight barrier that enables tire inflation and pressure retention. It also offers flexibility and durability to tire inner liners.
Other major applications for halogenated butyl rubber include pharmaceutical closures, adhesives, vibration dampening, conveyor belts, among others. Brominated butyl rubber’s low gas permeability makes it well suited for seals, stoppers, and lining in medication vials and syringes to maintain sterility and prevent contamination. This segment accounts for approximately 5% of demand.
The primary producers of halogenated butyl rubber are located in the United States, Canada, Belgium, the United Kingdom, Japan, Russia, China, Singapore, Saudi Arabia, and India. Among these, the Asia-Pacific region is the largest consumer, accounting for 40% of global consumption in 2022.
China is the most important demand country in the Asia-Pacific region for halogenated butyl rubber. According to data, in 2022, China’s total import volume of butyl rubber reached 289,500 tons, a year-on-year increase of 35.36%. The import value was $659 million, up 42.94% year-on-year.
In recent years, with the continuous increase in production capacity and gradual improvement in technology, the operating rates of China’s butyl rubber production facilities have steadily increased, and output has also increased significantly. However, as domestic products cannot yet meet the actual production needs in terms of product variety and specifications, high-performance, multi-purpose products still rely on imports.
Specifically for the halogenated butyl rubber industry, China’s current major manufacturers include Sinopec Yanshan Petrochemical Company, Zhejiang Cenway Materials Co., Ltd., and Shandong Chambroad Sinopoly New Materials Co., Ltd.
The large demand and still growing reliance on imports demonstrates the need for continued expansion of domestic halogenated butyl rubber production in China. Chinese manufacturers are focused on improving their product portfolios through advancing technologies and building additional capacity. This aims to better substitute for imported products over time, especially higher-end specialty grades.
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The major global manufacturers of halogenated butyl rubber include ExxonMobil Corporation, ARLANXEO Holding BV, and PJSC Nizhnekamskneftekhim. Other manufacturers in this industry include Reliance Sibur Elastomers Private Limited, Sinopec Yanshan Petrochemical Company, Zhejiang Cenway Materials Co., Ltd., Shandong Chambroad Sinopoly New Materials Co., Ltd., Japan Butyl Co., Ltd., etc.
Halogenated Butyl Rubber Industry Developments
The Ministry of Commerce of China issued Announcement No.31 of 2023 on the initiation of expiry review investigation concerning the anti-dumping measures on imports of halogenated butyl rubber originating in the United States, European Union, United Kingdom and Singapore.
On August 10, 2018, the Ministry of Commerce issued Announcement No.40 of 2018, deciding to impose anti-dumping duties on imports of halogenated butyl rubber originating in the United States, European Union and Singapore from August 20, 2018. The anti-dumping duty rates were 75.5% for the United States, 27.4% – 71.9% for the European Union, and 23.1% – 45.2% for Singapore, with a duration of 5 years.
On November 19, 2019, the Ministry of Commerce issued Announcement No.52 of 2019, deciding to initiate an interim review investigation concerning the anti-dumping measures applicable to imports of halogenated butyl rubber produced by Exxon Mobil Corporation and ExxonMobil Chemical Company. On November 19, 2020, upon request by interested parties, the Ministry of Commerce issued an announcement terminating this interim review investigation.
On January 29, 2021, the Ministry of Commerce issued Announcement No.3 of 2021. According to this announcement, the trade remedies previously imposed on the European Union shall continue to apply to the European Union and the United Kingdom after the end of the Brexit transition period on December 31, 2020, with the duration unchanged.
On June 19, 2023, the Ministry of Commerce received an expiry review application concerning the anti-dumping measures submitted by Zhejiang Cenway Materials Co., Ltd. on behalf of China’s halogenated butyl rubber industry. The applicant proposed that the United Kingdom has the halogenated butyl rubber industry and has been dumping exports to China, requesting that the United Kingdom be included as a country (region) under investigation in this review. The applicant argued that if the anti-dumping measures are terminated, the dumping of imports of halogenated butyl rubber originating in the United States, European Union, United Kingdom and Singapore to China may continue or recur, and the damage to China’s domestic industry may continue or recur. The applicant requested the Ministry of Commerce to conduct an expiry review investigation on imports of halogenated butyl rubber originating in the United States, European Union, United Kingdom and Singapore, and to maintain the anti-dumping measures on imports originating in these countries/regions. Shandong Chambroad Sinopoly New Materials Co., Ltd. supports the application.
Key Questions Answered
What is the projected global market size for halogenated butyl rubber by 2028?
The market is forecast to reach $5.04 billion by 2028.
Which application segment exhibits dominant influence?
The tires segment accounts for ~ 90% of global demand, making it the dominant application.
Which region holds the largest market share?
Asia-Pacific leads with around 40% share of global consumption.
Who are the key players with the largest market share?
ExxonMobil Corporation, ARLANXEO Holding BV, and PJSC Nizhnekamskneftekhim hold majority share.
What is the estimated global market size in 2023?
The market is estimated at $3.64 billion in 2023.
What are the main drivers of market growth?
Key factors are rising automotive production and industrial activity, particularly in Asia-Pacific.
What is the expected growth rate over the forecast period?
The market is projected to grow at a 5.5% compound annual growth rate from 2022-2028.
USD 3644 million in 2022
Europe, North America, Asia-Pacific, Rest of World
ExxonMobil Corporation, ARLANXEO Holding BV, PJSC Nizhnekamskneftekhim, Reliance Sibur Elastomers Private Limited, Sinopec Yanshan Petrochemical Company, Zhejiang Cenway Materials Co. Ltd., Shandong Chambroad Sinopoly New Materials Co. Ltd., Japan Butyl Co. Ltd.
Table of Contents
1. Scope and Methodology
1.2 Report Scope
1.3 Research Methodology
2. Executive Summary
3. Market Overview
4. Global Halogenated Butyl Rubber Market – Application Analysis
4.1 Pharmaceutical closures
5. Global Halogenated Butyl Rubber Market – Region Analysis
5.1 North America
5.4 Rest of World
6. Patents Analysis
7. Competitive Landscape
7.1 Competitive Scenario
7.2 Market Positioning/Share Analysis
7.3 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
8. Company Profiles
8.1 ExxonMobil Corporation
8.2 ARLANXEO Holding BV
8.3 PJSC Nizhnekamskneftekhim
8.4 Reliance Sibur Elastomers Private Limited
8.5 Sinopec Yanshan Petrochemical Company
8.6 Zhejiang Cenway Materials Co., Ltd.
8.7 Shandong Chambroad Sinopoly New Materials Co., Ltd.
8.8 Japan Butyl Co., Ltd.
A selection of companies mentioned in this report includes:
ARLANXEO Holding BV
Reliance Sibur Elastomers Private Limited
Sinopec Yanshan Petrochemical Company
Zhejiang Cenway Materials Co., Ltd.
Shandong Chambroad Sinopoly New Materials Co., Ltd.
Japan Butyl Co., Ltd.
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