Industry Overview - The Chinese isobutylene isoprene rubber (IIR) industry has experienced rapid growth but remains in a "large but not strong" phase [1][13] - In the first five months of 2025, China's IIR production reached 135,700 tons, a year-on-year increase of 105.02%, while consumption was 228,600 tons, up 52.77% [1][13] - The industry is undergoing capacity expansion and technological upgrades, leading to a significant increase in overall production [1][13] - Domestic breakthroughs in halogenated butyl rubber (HIIR) technology have improved the self-sufficiency of high-end products, reducing reliance on imports [1][13] Demand Drivers - The domestic tire industry is recovering, particularly with the rapid development of new energy vehicles and high-end radial tires, significantly increasing the demand for high-performance IIR [1][13] - Emerging application fields such as pharmaceutical packaging and sealing materials are also growing rapidly, further expanding the market space for IIR [1][13] Industry Development Stages - The IIR industry in China has gone through three main stages: 1. **Initial Stage (1966-1999)**: The first domestic IIR production facility was established in 1999, ending complete reliance on imports [4] 2. **Capacity Expansion Stage (2000-2020)**: Significant capacity expansion occurred, with major players developing their production capabilities [5] 3. **Market Maturity Stage (2021-Present)**: The industry has seen optimization in processes and increased support from the government for technological innovation [6] Industry Chain - The upstream of the IIR industry includes raw materials such as isobutylene and isoprene, while the midstream involves the manufacturing of IIR [8] - The downstream applications include tires, pharmaceutical bottle stoppers, waterproof materials, and sealing adhesives [8] Key Enterprises - Major players in the IIR industry include: - **Sinopec Beijing Yanshan Petrochemical**: The first to achieve IIR industrialization in China with a capacity of 135,000 tons/year [17][18] - **Zhejiang Xinhui New Materials**: The largest domestic producer with an annual capacity exceeding 250,000 tons [17][20] - **Jingbo Zhongju New Materials**: A subsidiary of Jingbo Group with a capacity of about 120,000 tons/year [17][24] Future Trends - The industry is expected to shift towards high-end and functional products, with halogenated IIR gradually replacing traditional IIR due to superior properties [24] - There is a strong focus on green and sustainable development, with companies adopting cleaner production processes and developing bio-based and degradable rubber products [25] - Market competition is intensifying, with leading companies likely to increase their market share while smaller firms may face consolidation or exit [26]