NBR Market May Continue to Climb on Scheduled Maintenance

Although the overall rubber market was not optimistic, the NBR market performed uncharacteristically. It remained at a relatively high level, creating high profits of NBR producers. Recently, NBR producers in China successively announced scheduled maintenance plans, so the market supply was expected to bolster up the market.

The prices of Chinese-made NBR hovered about RMB 17,500/mt during the past 12 months. There was no marked ups and downs, and the market prices of NBR held firm. The profits of NBR producers were high. As the resources in circulation were limited, the profits of traders were also considerable.

In H2, 2018, the Ministry of Commerce decided to levy margin of import of NBR originating in South Korea and Japan, pushing up the NBR market as a whole. Additionally, IGSR and ARLANXEO TSRC conducted maintenance. The supply from other producers was also relatively limited. PetroChina Lanzhou Petrochemical lifted the ex-works price of NBR by RMB 200-400/mt on the limited resources. Offers from other producers were stable. By August 20, market prices of NBR 3305E from PetroChina Lanzhou Petrochemical were about RMB 22,000/mt, up 7.32% from that in early 2018.

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