Industry Overview - The isoprene rubber industry in China has rapidly developed since achieving industrial production in 2010, becoming the world's second-largest producer and the largest producer of rare earth-based polyisoprene rubber [1][10] - In the first five months of 2025, China's isoprene rubber production was 25,100 tons, a year-on-year decrease of 4.41%, while consumption was 21,100 tons, down 13.51% year-on-year [10][12] - The traditional downstream tire industry is facing demand slowdowns due to the lightweight trend of new energy vehicles, while consumption in non-tire sectors like construction and footwear is also weak [10][12] Industry Development History - The development of China's isoprene rubber industry can be divided into three stages: the initial stage before 2010, the industrial breakthrough stage from 2010 to 2018, and the structural adjustment stage from 2019 to the present [4][5] - The first industrial production facility for rare earth isoprene rubber was established in 2010, ending the history of no industrial production in China [4][5] - Since 2019, the industry has entered an adjustment period with declining capacity utilization and increased industry concentration [5][6] Industry Chain - The upstream of the isoprene rubber industry includes raw materials such as isoprene monomer, catalysts, and solvents, as well as production equipment [8] - The midstream involves the production and manufacturing of isoprene rubber, while the downstream applications include tires, medical materials, and various industrial products [8] Current Industry Status - The industry is currently experiencing a decline in demand and production, with a significant drop in consumption in traditional sectors [10][12] - The import of isoprene rubber surged to 56,100 tons in the first four months of 2025, a year-on-year increase of 102.73%, while exports increased by 10.55% to 13,800 tons [16] Key Enterprises - Major players in the industry include Sinopec Yanshan Petrochemical, which produces high-end products with a cis-structure content of 95%-98%, and Huizhou Yikeshi, which has a production capacity of 500,000 tons per year [18][19] - Xinjiang Tianli Petrochemical focuses on deep processing of carbon five and carbon nine, with an isoprene rubber production capacity of 30,000 tons per year [21][19] Industry Development Trends - The industry is expected to focus on product structure upgrades and high-end development, with an emphasis on reducing reliance on imports for high-end applications [25][26] - Emerging applications in the pharmaceutical sector are anticipated to drive demand growth, as isoprene rubber is increasingly used in medical packaging and components [27] - An export-oriented development pattern is expected to emerge as domestic demand growth is limited, with the "Belt and Road" initiative enhancing international competitiveness [28]