The year 2020 has been a year like no other. The pandemic has brought everyone on the same platform. We all have been a mute witness to the rage of Nature and the apocalypse it can create. The question which persists in my mind is ‘Have we really learnt any lessons from the same?’ Are we going to treat Mother Earth better and build a sustainable planet for our future generation?

On a brighter note, most economies are showing signs of phenomenal recovery. The automobile sector looks to be one of the biggest beneficiaries. Vehicular traffic on the road and the number of new vehicle registrations are a big indicator of the same. In fact, an Indian two-wheeler manufacturer broke its own export record in December 2020. Our belief has proved true again. The human race has endured many such pandemics throughout the years of evolution and evolved better, stronger, smarter.

Processing ELTs

Indogreen Enviro has been involved in the process of ELTs (End of life Tyres) for about a decade.

We have been witnessing the growth of the tyre recycling industry. From the 1970-2000, the majority of organised ELT recycling was about making ‘Devulcanised rubber reclaim sheets.’ These sheets are used in a wide range of applications like tyre re-treads, bicycle tyres, conveyor belts, rubber compounds to name a few.

From 2000 onwards the market started changing due to the introduction of radial tyres. The radial tyres had high tensile steel in them and now could not be grinded directly like the nylon tyres. They need new technology Shredders, Raspers, Granulators to make it ready for grinding. This decade saw many high technology shredding and granulation plants coming up across the country. This included India’s largest and fully automated 100 Mt/annum plant till date Vapi, Gujarat. These granulation plants created a new market for ELT granules-based playground tiles and mats. The CRMB(Crumb Rubber Modified Bitumen) also gained acceptance in large national road construction projects.

Batch type pyrolysis plants

From 2005 onwards, there was a new tyre recycling technology introduced to the Indian market - ‘Batch type pyrolysis plants.’ These plants were initially imported from China. Though profitable, they were extremely unstable, environmentally non-compliant and unsafe for operation. Due to their profitability ,By the year 2019,India had more than 1000 batch type-pyrolysis plants installed. The combined tyre requirement per day for these plants was about 10,000 Mt/day. That would mean a requirement of 10,00,000 passenger car tyres every day, to give a perspective. This monster had a huge appetite that could not be met with tyres from India. So these pyrolysis companies started looking for imported tyres with a perpetual supply possibility from round the globe.

There was only one challenge. The pyrolysis plants are not allowed to import tyres. The shredding companies were allowed to import with a license from DGFT. The batch type pyrolysis companies started buying container loads of tyres from the shredding companies. India started importing about 900,000 MT annually making it the largest importer of ELT in the world until July 2019.The Public Interest Litigation filed against the ‘Batch type pyrolysis plants’ put the brakes on these transactions. The government was forced to take cognisance of the humungous nature of the impending matter at hand.

This is the India story, but could be a similar story for any country from Asia where the Scrap Tyre disposal policy is not yet framed or implemented. I am taking the stance of the agitator than just being a mute spectator. There is so much that can be done than what is being done today.

Scrap tyre disposal policy

There is a strong buzz about ‘Circular Economy’ in Europe and the US. Large tyre companies and chemical giants are investing in various tyre technologies to bring the derivatives from the tyres to be reused in manufacturing new tyres. In India, we don’t even have a national scrap tyre disposal policy. Most local tyre companies are still waiting for an ‘EPR’ to start thinking of sustainable disposal. 

In fact, we as a country need ‘Circular economy.’ The responsibly recycled ELT can create high quality reclaim rubber, High calorific value oil with possibility on further hydro treatment to distil commercial grade diesel & petrol, commercial grade carbon black for manufacturing pigments, etc, liberated fibre to make thermoplastics, liberated gases that can be further processed, this can go on and on. There is so much of interest from large companies to set up plants to process this waste but they hesitate because of the lack of a government framework to support the huge capital investment required.

Despite all odds, some companies from India have done some amazing work in developing innovative ELT recycling technologies. A fine example would be Radhe Renewable Energy Development Ltd, Rajkot. They conceived, developed and now operate the ‘World Largest 100 MT Per Day Single Reactor Continuous Pyrolysis Plant ‘ for the last 8 years in Bhilwara, Rajasthan. No other company from around the globe can boast of this feat.In fact some of the large global giants who were looking for a commercial scale large continuous plant could not believe that such a plant and technology existed, that too from a non-descript town from India. This company now supplies ASTM grade Carbon Black and High Calorie fuel to Indian tyre industry beginning the ‘Circular Economy.’

Another interesting Company is Hotfut Sports, an award-winning sports infrastructure development and management company that has been one of the largest consumers of turf technology and synthetic turf products across its various formats. These products have a primary infill requirement of SBR rubber. HotFut has consciously been adapting its procurement process to ensure all SBR and infill / shock-pad requirements are sourced responsibly using recycled ELT’s / rubber scrap making all their facilities more environmentally friendly. They have structured solutions for forward thinking tyre companies wanting to pro-actively process their ELT with a win -win proposition. Many major tyre companies have found their solution very sustainable as well as profitable.

Last year, Internet was abuzz about this start up ‘Blink Green’ from Pune, India. They used ELT for making attractive ladies’ footwear and purses. They have found the utility of this wonderful waste and now is utilising her designing skill and the expertise of the cobble community to churn out beautiful, durable items for the domestic and global market.

These kinds of stories are emerging from all across the continent Imagine the power of scalability of these kind of products with the right kind of financial and marketing support.

I look forward to the day (soon) when we have the ‘Scrap tyre disposal policy’ is finally rolled out and the top tyre companies wait for the EPR policy is over. With a sizeable contribution coming out of their respective CSR budgets and ATMA’s able guidance, a national body to look at new & innovative sustainable disposal practices for ELT could be established. This would be a giant first step taken in the Asian subcontinent towards sustainable recycling of this incredible waste and thus setting a precedence for other countries to follow.

Nouryon, a leading supplier of organic peroxides and a developer of organic peroxide solutions, has formally announced the completion of capacity expansion of its organic peroxides manufacturing facility in Ningbo, China.

The company's production capacity for Perkadox 14 and Trigonox 101 organic peroxide products, which are crucial components for altering polymer characteristics and crosslinking rubbers and thermoplastics, has increased to 6,000 tonnes each as a result of this capacity expansion. Furthermore, by improving the qualities of recycled polypropylene (R-PP), these solutions can also allow consumers to employ recycled polymers in applications that were previously exclusive to virgin plastics.

Alain Rynwalt, Senior Vice President – Performance Materials, Nouryon, said, “Nouryon is a world leader in essential ingredients for the polymer industry and this expansion highlights our dedication to supporting our customers’ growth across the entire polymer cycle. Customer interest in improving the properties of recycled polypropylene continues to rise, in line with increased consumer awareness and more stringent regulations.”

Sobers Sethi, Senior Vice President – Emerging Markets and China, Nouryon, said, “Asia Pacific is a key region for Nouryon and our most recent expansion in China strengthens our supply position even more in this growing region. Our customers rely on our existing network of manufacturing facilities and innovative technologies, and we are pleased to build more capacity to meet growing customer demand around the world.”

Trinseo, a speciality materials solutions provider, has signed agreements to supply its polycarbonate technology license as well as all proprietary polycarbonate production equipment in Stade, Germany to Deepak Chem Tech Ltd, a wholly owned subsidiary of Deepak Nitrite Limited, a diversified chemical intermediates company based in Vadodara, Gujarat, India.

The combined deals are worth USD 52.5 million. Subject to significant milestones, the business anticipates receiving around USD 9 million by the end of 2024 and an additional USD 21 million in the first part of 2025. The firm has made the decision to leave Stade, Germany, with this disposal of the production assets.

Frank Bozich, President and Chief Executive Officer, Trinseo, said, “While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilised in India by Deepak. These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India.”

China's butadiene exports have experienced significant growth in recent years, particularly in 2021 and 2024. According to Sublime China Information (SCI), this surge is primarily driven by supply constraints in key regions, including the US and Southeast Asia.

Export Volume and Price Trends

In 2021, China's butadiene exports reached a historic high due to a supply gap in the US market. According to SCI, this trend continued in 2024 as reduced deep-sea cargo shipments and production challenges in Southeast Asia further tightened global supplies. From January to September 2024, China's total butadiene exports surged by 111 percent year-over-year to approximately 120.8 kilo tonnes.

The average export price of butadiene has fluctuated over the past five years. In 2023, weak demand in South Korea and competition from deep-sea cargoes led to a significant decline in export prices. However, in 2024, supply shortages from key regions drove prices to a five-year high. As of September 2024, the average export price reached USD 1,391 per metric ton, a 35 percent month-over-month increase, added SCI.

Export Destinations and Regional Dynamics

The majority of China's butadiene exports are directed to South Korea and Taiwan. In 2024, South Korea accounted for 74 percent of total exports, a significant increase from the previous year. This surge was driven by factors such as limited domestic supply and increased demand for spot butadiene.

While China's butadiene exports have been strong, the long-term potential for significant growth in deep-sea exports remains limited due to established supply chains and regional demand dynamics. Most of China's exports are currently concentrated in Northeast Asia, with limited opportunities for expansion into other regions.

Future Outlook

SCI added that 2025 China's butadiene supply is expected to be relatively sufficient, and export volumes may increase further. However, the sustained growth of exports will depend on various factors, including downstream demand in key markets, the availability of deep-sea cargoes, and the development of new production capacities in other regions.

Despite these uncertainties, China's butadiene industry is well-positioned to capitalize on global supply-demand imbalances and continue to play a significant role in the global market.

Cabot Corporation, a global speciality chemicals and performance materials company, has announced through an official statement that it will raise prices globally for carbon black products sold by its speciality carbons business. The price rise will be global and will come into effect for all shipments on or after 1 December 2024, or as contracts allow.

The company claims that the price rise is necessary owing to the impact of inflation on labour, maintenance and other production activities, as well as supply chain-related expenditures. The price increase will vary depending on the product and region.

The statement further elaborates that these price adjustments will help the company remain a dependable, long-term provider of high-quality products and services to its consumers. Cabot also underlined its commitment to guaranteeing supply security and the best service standards for its clients, as well as providing technological and process improvements and moving forward with its environmental goals.