China’s ESBR Supply to Decrease in Nov
China’s ESBR monthly output decreased M-O-M in October.
In October, China’s ESBR monthly output was 87.9kt or so, down 2.55% M-O-M and up 27.58% Y-O-Y, mainly as the output at PetroChina Jilin Petrochemical, PetroChina Lanzhou Petrochemical and Shen Hua Chemical Industrial declined. The monthly output at Nanjing Yangzi Petrochemical and Rubber inched up, and that at other producers was largely unchanged. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In October, mainstream prices of ESBR rose greatly. As prices of NR futures at the SHFE and butadiene prices soared this month, ESBR market prices continuously increased, and the increment was beyond players’ expectations. End enterprises showed resistance to rising ESBR prices. At the end of this month, prices of NR futures at the SHFE and butadiene prices moved sideways. Accordingly, the increase in ESBR market prices weakened somewhat. End enterprises mainly purchased on a need-to basis. In October, the theoretical loss from producing ESBR was RMB 216/mt, RMB 22/mt lower from last month. This month, the marginal benefit of ESBR increased somewhat, as the increase in ESBR prices was slightly higher than that in feedstock prices.
