Feb SBR Operating Rate High and Supply Stable
Introduction: Up to February 2025, there were 11 ESBR producers in China with a total capacity of 1,460kt/a. This research covered all of China’s SBR producers. Therein, there were 2 SBR producers in North China with a total capacity of 350kt/a, 4 in East China with 470kt/a, 2 in South China with 150kt/a, 2 in Northeast China with 340kt/a, and 1 in Northwest China with 150kt/a.
In February, the operating rate of the ESBR industry edged up MoM.
In February, the operating rate of the ESBR industry was 79.56%, up 0.68 percentage points MoM. Most SBR units ran at full loads in February. The relocated 220kt/a SBR unit at Shen Hua Chemical Industrial maintained one-line production. The operating rates of the other units saw no obvious change.
According to SCI, in February 2025, the operating rates of the ESBR industry in various regions of China were different. Therein, the operating rates in North China, South China, Northeast China, and Northwest China were stable. The operating rates at Sinopec Qilu Company, Nanjing Yangzi Petrochemical and Rubber, Shen Hua Chemical Industrial, PetroChina Jilin Petrochemical, PetroChina Fushun Petrochemical, and PetroChina Lanzhou Petrochemical were all maximized, mainly due to the fairish profits of the SBR industry. The operating rate in East China moved up by 2 percentage points mainly because one production line of the relocated SBR unit at Shen Hua Chemical Industrial ran at a full load.
The changes in the operating rates in various regions resulted in slight adjustments in the SBR resource flow in different regions. The overall circulation volume of SBR resources increased, failing to bolster the SBR price effectively. One production line of the relocated SBR unit at Shen Hua Chemical Industrial was under production, and the operating rate was stable. Overall, the operating rate of the SBR industry inched up MoM.
The monthly average price of feedstock butadiene trended up, while that of styrene edged up. That of SBR moved up, but the increment in the SBR price was larger than that in feedstock prices. Thus, the gross profits of the SBR industry expanded slightly and were over RMB 800/mt. Therefore, the operating rates at SBR producers that sourced feedstock butadiene from the market were maximized. Also, the operating rates of the SBR units sourcing feedstock butadiene from refining-chemical integration units were maximized. Overall, 1 SBR producer saw MoM growth in the operating rate in February, no one saw a decline, and the remaining units maintained stable operating rates. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained offline.
According to SCI, China’s SBR units are scheduled to run at full loads in March. The operating rate of the SBR industry in China may rise to around 80% in March, up around 0.44 percentage points MoM. The relocated 220kt/a ESBR unit at Shen Hua Chemical Industrial was fed into feedstock on January 2, and the existing 170kt/a ESBR unit operated at the same time. In March, the existing 170kt/a ESBR unit at Shen Hua Chemical Industrial is expected to run at a full load, and the relocated 220kt/a unit may maintain one-line operation. In March, the operating rate at PetroChina Lanzhou Petrochemical is likely to rise. The SBR unit at PetroChina Fushun Petrochemical is scheduled to take turnarounds. The overall operating rate of the SBR industry is expected to edge up in March. Only the SBR unit at PetroChina Lanzhou Petrochemical may take maintenance in April. Yet, in terms of SBR supply, the SBR resources circulating in the market are predicted to stay ample in the next three months, failing to drive up the SBR price. The operating rate forecast above may be adjusted based on the actual running status of the SBR units.
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