HCBR monthly output in June increased M-O-M.
In June, China’s HCBR monthly output was 94.1kt or so, up about 8.29% M-O-M and up 37.77% Y-O-Y. The reasons for the M-O-M increase were mainly as follows: As for the state-owned enterprises, Sinopec Beijing Yanshan Company shut units down in H2 June, but Nanjing Yangzi Petrochemical and Rubber and Sinopec Maoming Company resumed normal production this month. Moreover, the output at PetroChina Daqing Petrochemical Company and PetroChina Sichuan Petrochemical rose marginally. Thus, the monthly output at state-owned enterprises rose by about 6% M-O-M. As for the private HCBR enterprises, except for the units under long-term shutdown, Hipro New Material Technology restarted units in early June, and other units were under steady production. Therefore, the monthly output at private HCBR enterprises increased by about 13% M-O-M.
In June, mainstream prices of HCBR first dropped and then rose. The prices declined to low levels in early June, and then as NR prices fluctuated upwards for a short time, mainstream prices of HCBR went up. In mid-June, news said that PBR units at Sinopec Beijing Yanshan Company and Sinopec Qilu Company would undergo maintenance, and the expected decrease in supply of Chinese-made PBR resources lifted the low-end prices. Traders had weaker willingness to sell at low prices, and the market prices rose. Up to the end of this month, suppliers raised PBR ex-works prices by RMB 800/mt. However, end enterprises had weak interest in procurement, and sales at high prices encountered resistance. By the end of this month, the theoretical profit from producing HCBR averaged around RMB 1,000/mt or so. The profit from producing HCBR was better. Some units that were under shutdown for a long time would be restarted.
