The Demand for Road Modification-Used SBS Will Increase

Curbed by the hot and raining weather, the downstream road construction was slow, and the actual consumption for road modification-used SBS was tepid. Prices at suppliers were low, but market participants showed strong interest in purchasing road modification-used SBS.

Feedstock prices increased greatly, so profits at suppliers were narrowed greatly.

Up to July 30, at East China Sinopec Marketing, butadiene prices were RMB 12,400/mt, and styrene prices were RMB 11,650/mt. Dry SBS costs were RMB 15,175/mt. Currently, SBS 792 prices at Central China Sinopec Marketing increase to RMB 15,500/mt. Profits at suppliers are narrowed to RMB 325/mt. Given the low profits at suppliers, the adjustment for costs or prices at suppliers are expected to be seen in order to gain relatively reasonable profits.

Dry SBS output kept increasing, but slightly decreased M-O-M.

From January to July 2018, dry SBS output increased to 303.6kt, up 77.3kt or 34.11% Y-O-Y, but down 1.60% M-O-M. Therein, dry SBS and road modification-used SBS output at Sinopec Baling Company and Ningbo Jinhai Chenguang Chemical decreased, and that at PetroChina Dushanzi Petrochemical and Huizhou LCY Elastomers increased. But, on the whole, the output declined slightly.

The demand for road modification-used SBS remained firm, but the actual downstream consumption for it was slow.

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