August China ESBR Output to Inch down
In July 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.
July slight M-O-M increase in China’s ESBR monthly output
In July, China’s ESBR monthly output was 78kt or so, up 0.53% M-O-M and down 14.62% Y-O-Y. The M-O-M increase was mainly as the output at Nanjing Yangzi Petrochemical and Rubber and PetroChina Lanzhou Petrochemical inched up. Hangzhou Yibang Rubber’s unit remained shut in July. On the whole, the ESBR monthly output in July rose by 2.7kt M-O-M, though the output at Shen Hua Chemical Industrial dwindled somewhat. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In July, China’s ESBR market prices first fell and then slightly rebounded. At the end of July, as the prices of Shanghai natural rubber futures rebounded, SBR offers rose by RMB 200/mt, and SBR market prices trended up. However, downstream plants continued the just-needed procurement of SBR, so the spot sales were small. The continuous increase in SBR prices came under pressure due to scant demand. In July, the theoretical profit from producing ESBR was RMB -1,006/mt, up RMB 534/mt M-O-M. In July, the increment in ESBR prices was notably lower than that in feedstock prices, so ESBR producers’ marginal benefit rose.
August China’s ESBR monthly output to show a slight M-O-M drop
In August, China’s ESBR monthly output is estimated at 77.5kt or so, down 0.58% M-O-M and up 9.15% Y-O-Y. In August, the output at Nanjing Yangzi Petrochemical and Rubber will probably edge down, while other SBR producers’ output will have no obvious adjustments. On the whole, the total output in August is predicted to drop by 0.5kt or so. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in August.
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