China’s ESBR monthly output was largely unchanged M-O-M in June.
In June, China’s ESBR monthly output was 90.2kt or so, up 0.11% M-O-M and up 21.4% Y-O-Y, mainly as Hangzhou Yibang Rubber resumed production. The output at Bridgestone (Huizhou) Synthetic Rubber edged down, and the output at other producers was largely unchanged M-O-M. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In June, mainstream prices of ESBR rebounded slightly after dropping. In H2 June, marketing companies raised SBR offers by RMB 400/mt, as some PBR units underwent maintenance. However, end enterprises had weak interest in procurement, and the circulation of spot SBR resources was stagnant. Moreover, NR prices at the SHFE and butadiene prices trended down. Thus, players were prudent in operation, and there were few transactions in the market. At the end of this month, players had stronger willingness to sell resources at prices lower than the ex-works prices, but the trading progress was stalemated. In June, the profit from producing ESBR was RMB 769/mt, and it rose by RMB 507/mt M-O-M. T the marginal benefit of ESBR increased somewhat, as the feedstock prices dropped and SBR prices went up. Hangzhou Yibang Rubber has resumed production, and the units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in July.
