Unprecedented producer consolidations and technological changes will continue to dramatically change the shape of competition in the styrene block-copolymer (SBC) industry. Although the industry is relatively small by global polymer standards, it has come under the forces of industry restructuring (e.g., Kraton business divestment) and technological shifts (e.g., new elastomers from new technologies such as metallocene catalysts). How will these changes impact the SBC players' business and profitability?

The Catalyst Group's (TCG's) report entitled, "Styrene Block-Copolymers: Technology Innovation and Strategies for the New Millennium" is the first study of its kind to address the complex technical and strategic issues. While important market information is addressed, this is not another supply / demand market report. Instead, TCG provides an in-depth assessment of the advancements in catalysis and process technology, the product and business innovations, ways to capture added value, and the impact of monomer supply logistics, with a special focus on butadiene and isoprene supply.

The industry remains long in SBC supply (especially in Asia), while monomer prices continue to increase alongside energy costs. Virtual oligopolies among butadiene and isoprene producers tend to keep monomer supply relatively tight. As a result, SBC producers will likely see lower than desired margins and earnings, at least for the next 1-2 years. This trend will be especially evident for the styrene-butadiene-styrene (SBS) grades, which represent the large-volume commodity sector of this business. Fortunately, there may be an important "hook" that can help companies recapture the lost margin. That hook is technology!

TCG's report examines the new catalysts and processes that will enable certain producers to capture higher margins, by differentiating SBC grades into more specialized markets. This includes the higher value styrene-isoprene-styrene (SIS) and hydrogenated grades, such as styrene-ethylene-butylene-styrene (SEBS). These grades, as well as styrenic plastic modifiers (e.g., K-resin or Finaclear) enable companies to produce both engineered and elastomeric polymer alloys. The nature of butadiene, other selected olefins, and SBC grades will act as "technology vehicles," inspiring the development of new grades based on new catalysts.

Effective planning and competitive positioning serve as primary success factors for the future. Current producers, potential new competitors, and technology developers must assess the strategic and competitive alternatives for SBC polymers if the intent is to optimize future business growth and profitability. If you are interested in obtaining a full understanding of the market dynamics and technology drivers, then this report is a "must" for your organization.