ESBR Output will Continue to Increase in June

SCI99

2020-06-05

导读：ESBR Supply Monitoring: June ESBR Output will Continue

ESBR Supply Monitoring: June ESBR Output will Continue Increasing

In May 2020, China’s ESBR producers amounted to 11, with the total capacity of 1,470kt/a. The samples covers all SEBS 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.

China’s ESBR monthly output rose M-O-M in May.

In May, China’s ESBR monthly output was 90.1kt or so, up 7.78% M-O-M and up 5.26% Y-O-Y, mainly as the output at Sinopec Qilu Company, PetroChina Lanzhou Petrochemical, Shen Hua Chemical Industrial and Zhejiang Vitile Rubber rose notably from last month. The output at other producers was largely unchanged. The units at Hangzhou Yibang Rubber, Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.

In May, mainstream prices of ESBR fluctuated downwards. In early May, SBR offers dropped by RMB 200/mt. After the price declined, NR prices at the SHFE and butadiene prices trended up, so players raised the offers. In H2 May, SBR offers rose by RMB 100/mt. However, lack of the support from demand side, the trading activities were rare, and players held stronger bearish sentiment. In May, the profit from producing ESBR was RMB 261.6/mt, and it decreased by RMB 422/mt M-O-M. This month, China’s ESBR prices fluctuated within a narrow range, but the monthly average price of the feedstock butadiene and styrene rose. Thus, the marginal benefit of ESBR dropped somewhat. As for units under shutdown, only Hangzhou Yibang Rubber planned to restart units in June.

China’s ESBR monthly output will inch up M-O-M in June.

In June, China’s ESBR monthly output will be 90.3kt or so, up 0.22% M-O-M. After Hangzhou Yibang Rubber restarts units in June, the output of SBR will be pushed up. Although the output at Bridgestone (Huizhou) Synthetic Rubber will drop, the decrease in output will be lower than the increment. The output at other producers will be largely changed. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in June.

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