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Rubber Chemicals Rubber chemicals are compounded with synthetic or natural rubber to add or modify properties such as plasticity, elasticity, toughness, hardness, softness, abrasion and resistance. The different types of rubber chemicals are accelerators, antioxidants, peptisers, retarders and latex chemicals. Antioxidants and accelerators account for 90% of the total rubber chemicals. The main raw material to produce rubber chemicals are sulphur aniline, carbon disulphide and nitroclorobezene. Manufacturing process The main raw material required to produce the accelerators are aniline, carbon disulphide and sulphur. Reacting the above said chemicals at a high temperature and pressure produces MBT. Sulphenamides are produced by reacting MBT with various amines and oxidizing agents at a controlled temperature. Reacting amines & MBT, carbon disulphide, sodium hydroxide and subsequent oxidation at a controlled temperature produces accelerators. The major raw material used for producing antioxidants is aniline and para nitrochlorobenzenes. The process involves the production of the antioxidants in the presence of catalysts at high pressure and temperature in an autoclave. The technology is a highly guarded formula with a handful of companies in the world. The largest chemical manufacturer of rubber chemicals is NOCIL who has obtained the technology from Monsanto while other players such as Bayer and ICI have taken it from their respective parent companies. Indian companies do not usually spend much on R&D, as they are more interested in improving the quality and the form of the product. Markets The tyre producers in the organized sector consume 46% of the rubber chemicals. Nearly 60% of the demand comes from the bus and truck tyres. The growth in the demand of rubber chemicals is basically driven by rubber consumption. Demand for rubber chemicals is also affected by price fluctuations of natural and synthetic rubber. The tyre segment nearly accounts for 55% of the total demand. While footwear accounts for 10% of the total demand. This sector is expected to grow at the rate of 7%. Moldings account for 10%, while belting & rubber hoses account for nearly 6% of the total demand. Rubber based printers and rollers account for nearly6% of the total demand. Other markets#include latex products, cables, wires etc. Pricing Mechanism Raw material accounts for more than 60% of the total costs of production and it is easily available locally. Capital cost acts as a barrier as it requires Rs1bn to put up a 6500-ton plant. Outlook Presently the industry is in the throes of recession with the rubber and the tyre industry not doing well. The capacity expansion plans for the auto sector have also not fructified, as the auto sector is not in the best of its health. The demand is expected to be around 17,600ton and the growth to be around 10% in the coming year.     Other sector reports Previous chapter

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