Mar China ESBR Output to Increase
In February 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.
China’s ESBR monthly output decreased M-O-M in February.
In February, China’s ESBR monthly output was 101kt or so, down 8.18% M-O-M and up 21.22% Y-O-Y, mainly as Nanjing Yangzi Petrochemical and Rubber shut the unit down for a short time. The output at Sinopec Qilu Company, PetroChina Jilin Petrochemical, PetroChina Fushun Petrochemical, Shen Hua Chemical Industrial and Hangzhou Yibang Rubber was normal. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In February, China’s ESBR market prices first rose and then went down. After the Chinese New Year holiday, the prices of butadiene and Shanghai natural rubber futures went up, and resources holders raised selling prices accordingly. However, downstream tire plants had a weak interest in replenishment. In addition, the continuous increase in the prices of butadiene and Shanghai natural rubber futures came under pressure, and the circulation of ESBR spot resources was stagnant. As a result, resource holders cut the prices, and the market was stalemated. This month, the theoretical profit from producing ESBR was RMB 1,255/mt, down RMB 1,581/mt from last month. In February, feedstock butadiene and styrene prices went up, while ESBR prices dropped. Therefore, the profit decreased.
China’s ESBR monthly output will increase M-O-M in March.
In March, China’s ESBR monthly output will be 110.3kt or so, up 9.21% M-O-M and up 20.02% Y-O-Y. In March, the output at Sinopec Qilu Company, Nanjing Yangzi Petrochemical and Rubber, PetroChina Jilin Petrochemical, PetroChina Lanzhou Petrochemical, Zhejiang Vitile Rubber and Bridgestone (Huizhou) Synthetic Rubber will be normal. Other producers’ output will have no obvious adjustments. Therefore, the monthly output will increase in March. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in March.
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