Nov China ESBR Operating Rate Hit a Fresh High
Up to the end of November 2021, China’s ESBR producers amounted to 11, with a capacity of 1,470kt/a. The samples cover all ESBR producers in China.
The monthly average operating rate of China’s ESBR industry was 80.03% in November, up 13.03% M-O-M. This month, Nanjing Yangzi Petrochemical and Rubber resumed production. The operating rates at Sinopec Qilu Company, PetroChina Jilin Petrochemical, Shen Hua Chemical Industrial, Zhejiang Vitile Rubber and Hangzhou Yibang Rubber increased. Bridgestone (Huizhou) Synthetic Rubber conducted 10-day maintenance. Except for the units under long-time shutdown, the units shut down for maintenance this month involved 50kt/a capacity, with the total output losses of about 1,500mt.
In November, China’s ESBR market prices underwent a weak rebound after dropping. This month, prices of Shanghai natural rubber futures and butadiene prices hardly supported ESBR market prices. Moreover, the demand was soft. Thus, ESBR market prices went down. In mid-November, ESBR market prices rebounded somewhat amid the PBR price increase. However, the market struggled from ample supply and weak demand. In late November, ESBR market prices inched down, and the transaction was average. In November, the theoretical profit from producing ESBR was RMB 2,796/mt, rising significantly from last month.
In December, Sinopec Qilu Company, Nanjing Yangzi Petrochemical and Rubber, PetroChina Fushun Petrochemical, PetroChina Jilin Petrochemical, PetroChina Lanzhou Petrochemical, Shen Hua Chemical Industrial, Zhejiang Vitile Rubber and Hangzhou Yibang Rubber will be under normal production. The average operating rate of China’s ESBR industry is estimated at 82%-83% in December, up 2%-3% M-O-M.
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