1. Sinopec Beijing Yanshan Company cut the production of high-cis polybutadiene (HCBR), influenced by the environmental renovation.
During the renovation starting in April, the monthly production of HCBR was only half of the normal volume. In April–May, the monthly production of HCBR was around 6,000mt. In late June, three lines resumed. In July, the production of BR9000 was expected to surpass the 90% of the normal volume.
2. The HCBR unit at Huayu Rubber ran at a high-production level.
To reduce losses caused by the production reduction at Snopec Beijing Yanshan Company, Sinopec supplied some butadiene resources to Huayu Rubber from late April. Hence, the HCBR unit at Huayu Rubber ran at full loads in May–June. The products were delivered to customers of Sinopec in North China. With the increasing operating rate at Snopec Beijing Yanshan Company, Huayu Rubber may lower the operating rate.
3. Zhejiang Transfar Chemical converted the 100kt/a polybutadiene unit.
One line of the 100kt/a polybutadiene unit was converted into the rare earth/nickel HCBR line, and the other line was converted into the nickel HCBR line. Besides, some rare earth polybutadiene products will be produced as samples for downstream users in Q2 of 2017.
4. Shandong Wanda Chemical suspended the planned unit conversion.
The HCBR unit at Shandong Wanda Chemical was shut down from April 15, 2015 to mid-June 2017, caused by industrial difficulties and reduced profitability. During the period, the plant planned to convert the unit to produce SBS/SSBR. But competition was to be fiercer in 2018–2020 because of the newly-added units in China. Moreover, the profit from producing HCBR in H1 of 2017 moved upwards considerably from last year. Thus, the plant suspended the plan.
5. The average SBR/polybutadiene price in H1 of 2017 greatly rose from last year.
The average EXW price of SBR 1502 in H1 of 2017 at Sinopec Qilu Company was RMB 16,317/mt, up 63% from last year. The highest and the lowest points were RMB 23,900/mt in mid-February and RMB 10,500/mt in mid-June respectively.
The average EXW price of BR9000 in H1 of 2017 at Sinopec Qilu Company was RMB 17,595/mt, up 83% from last year. The highest and the lowest points were RMB 25,100/mt in mid-February and RMB 10,500/mt in mid-June respectively.
6. The production of Chinese-made SBR/polybutadiene in H1 of 2017 noticeably went up from last year.
The total production of ESBR in January–June was 470.3kt, up 8% YOY. Hereinto, the production in January–April obviously climbed from last year. The monthly production in May–June decreased from last year, caused by the overhauls at Sinopec Qilu Company and other producers.
The total production of HCBR in January–June was 408.6kt, up 5% YOY. Hereinto, the production in February, March and June greatly increased from last year.