Why is China's liquid polybutadiene market still reliant on imports despite new capacity?

Why is China's liquid polybutadiene market still reliant on imports despite new capacity?
China's domestic LPB industry remains nascent. While Maoming Petrochemical has started commercial production of HB40 for 5G laminates, and Tianyuan Hangcai is building HTPB capacity, domestic technology for liquid polybutadiene and liquid styrene-butadiene rubber was largely unreported until recently. Puyang Linshi Chemical in Henan is the only domestic producer with lithium-based liquid rubber units, making liquid isoprene rubber. The global supply landscape is dominated by European and Japanese producers using anionic solution polymerization. In 2022, Europe accounted for 43.7% of global production, while China's share was small. Import dependence persists because domestic grades have yet to match the consistency and performance of established brands like Cray Valley's or Kuraray's products, particularly for demanding applications in automotive adhesives and electronics.