September China ESBR Output to Ramp Up
In August 2021, China’s ESBR producers amounted to 11, with a total capacity of 1,470kt/a. The samples cover all ESBR producers in China. Therein, two producers are located in North China, 4 in East, 2 in South China, 2 in Northeast China and 1 in Northwest China.
August an M-O-M decrease in China’s ESBR monthly output
In August, China’s ESBR monthly output was 69.6kt or so, down 10% M-O-M and down 1.97% Y-O-Y. The M-O-M decrease was mainly as the output at Sinopec Qilu Company, Nanjing Yangzi Petrochemical and Rubber and Shen Hua Chemical Industrial diminished. Hangzhou Yibang Rubber restarted its unit in mid-August. On the whole, the ESBR monthly output in August dropped by 7.7kt M-O-M despite an increase in output at Hangzhou Yibang Rubber. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In August, China’s ESBR market prices first went down and then tended to move sideways. Reasons for the price decrease: The prices of Shanghai natural rubber futures went down, and the prices of butadiene and styrene provided limited support to the ESBR prices. In addition, semi-steel tire enterprises purchased ESBR on a need-to basis. The circulation of ESBR spot resources was stagnant. As a result, ESBR prices trended down. In mid-August, the ESBR supply increased, and the supply and demand fundamentals weighed on ESBR prices. In August, the theoretical profit from producing ESBR was RMB 414/mt, up RMB 1,542/mt M-O-M mainly as the decrease in ESBR prices was notably lower than that in feedstock prices.
September China’s ESBR monthly output to show an M-O-M increase
In September, China’s ESBR monthly output is estimated at 93.7kt or so, up 34.63% M-O-M and up22.32% Y-O-Y. In September, the output at Sinopec Qilu Company and Shen Hua Chemical Industrial will significantly mount up. The output at other SBR producers will have no obvious adjustments. On the whole, the total output in September is predicted to rise by 20kt or so. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in September.
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