Apr China ESBR Spot Resource Circulation
In April 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 decreased M-O-M in April.
In April, China’s ESBR monthly output was 92.9kt or so, down 9.24% M-O-M and up 10.34% Y-O-Y. The output at Sinopec Qilu Company, PetroChina Lanzhou Petrochemical, PetroChina Jilin Petrochemical, Shen Hua Chemical Industrial and Hangzhou Yibang Rubber decreased by 13kt M-O-M. The output at Zhejiang Vitile Rubber and Huizhou LCY Elastomers inched up. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In April, China’s ESBR market prices first increased and then declined. Early this month, the operating rates of some ESBR units decreased, and butadiene prices remained high. As marketing companies raised ESBR prices, the market prices went up notably. However, the uncontrollable factor led to logistics limitations, and the increasing logistics cost caused a weak downstream replenishment. In the context that the circulation of ESBR spot resources was stagnant, ESBR prices went down. The market was amid a strong wait-and-see sentiment, and players were prudent in operation. In April, the theoretical profit from producing ESBR was RMB -751/mt, down RMB 259/mt from last month. This month, feedstock butadiene and styrene prices went down, and ESBR prices dropped. However, the decrease in ESBR monthly average price was significantly higher than that in the feedstock cost. Therefore, the profit went down.
China’s ESBR monthly output is predicted to slightly drop M-O-M in May.
In May, China’s ESBR monthly output is estimated at 91.9kt or so, down 1.02% M-O-M and up 3.49% Y-O-Y. In May, the output at PetroChina Fushun Petrochemical, Shen Hua Chemical Industrial, Zhejiang Vitile Rubber, Hangzhou Yibang Rubber and Huizhou LCY Elastomers is predicted to edge down. The output at Sinopec Qilu Company and PetroChina Lanzhou Petrochemical is predicted to slightly rise. Other producers’ output will have no obvious adjustments. Therefore, the monthly output is predicted to drop by 1kt or so in May. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in May.
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