Special Synthetic Rubber Market Needs Time to Resume Transaction
Traditionally, China's special synthetic rubber market needs a long time to resume normal transaction after the Spring Festival holiday. In 2020, many enterprises extended the Spring Festival holiday due to the domestic situation. Affected by this, China's special synthetic rubber market may need longer time to resume normal transaction this year. SCI learned that the operation of domestic special synthetic rubber units remained the same as that before the Spring Festival. The trade will be postponed, and the resumption time of downstream rubber product enterprises will mostly be delayed according to local policies.
NBR market: Due to external factors, the Spring Festival holiday was extended this year. It is still on public holiday now. In addition, many local governments stipulate that, except for industries related to people's livelihood, enterprises may not resume work until 24:00 on February 9. SCI learned that some of the NBR units maintained normal operation, and some of the NBR units’ operating rate reduced. It was expected to resume normal trade around February 1. But due to the aforementioned factors, the NBR market remained closed, and the logistics and transportation were restricted, so there was basically no trading. Most of downstream producers continued the production suspension and had no purchase intention in the short term.
IIR market: This year,ｔhe IIR market is somewhat special, and the overall start-up time of the IIR market is expected to be delayed. At present, the market is still closed. SCI learned that the units at most of the IIR producers ran normally. The IIR unit at Sinopec Beijing Yanshan Company produced regular IIR. The IIR units at Zhejiang Cenway and Shandong Chambroad Zhongju New Material mainly produced HIIR. The enterprises’ inventory was sufficient. Most of the trades had not started. The downstream producers, especially tire enterprises, will not resume normal production until the Lantern Festival (February 8). The recovery of the overall demand is not optimistic. In addition, due to restricted high-speed transportation in some provinces, it is difficult for products to circulate, and the specific situation remains to be followed up. With the end of the statutory holiday, some players will return to work next week, and market news may gradually become clear.
EPDM market: Affected by domestic situations, the Spring Festival holiday this year was postponed, but there were some differences between different provinces. The market is currently closed. SCI learned that most of the domestic EPDM units continued their operation, and due to the extension of the Spring Festival holiday, the inventory at some enterprises increased compared with the previous period. The enterprises’ sales personnel may returned to work on February 3 or February 10. Traders had not returned to the market. Coupled with restrictions on transportation and other factors, market trading had not started yet. The downstream rubber product enterprises delayed the resumption time to February 10 according to the local policies, and the overall consumption of rubber feedstock basically stagnated. With the end of the holidays next week, some players may return to work gradually.
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