Oct China ESBR Output to Increase
In September 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 increased M-O-M in September.
In September, China’s ESBR monthly output was 76.6kt or so, up 7.89% M-O-M and down 19.11% Y-O-Y. The M-O-M increase was that Sinopec Qilu Company restarted the unit and the unit at PetroChina Lanzhou Petrochemical was under normal production. The output at Shen Hua Chemical Industrial declined, and that at other producers was largely stable. The ESBR units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In September, China’s ESBR market prices went down. Tire enterprises had a weak interest in ESBR procurement this month, so the circulation of ESBR spot resources was stagnant. Besides, the prices of NR futures at the SHFE and butadiene prices declined. Therefore, ESBR prices were low. Additionally, players were prudent in operation, due to the decreasing ESBR selling prices and need-to-basis demand. At the end of this month, some resources holders tried to raise selling prices owing to the insufficient resources in circulation, but the trading activities remained lukewarm. This month, the theoretical profit from producing ESBR was RMB 796/mt, up RMB 1,117/mt from last month. China’s ESBR profit rose significantly, as the decrease in the ESBR price was greatly lower than that in feedstock average price.
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