Stable China ESBR Supply
In January 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 January.
In January, China’s ESBR monthly output was 110kt or so, up 7.32% M-O-M and up 24.15% Y-O-Y, mainly as the output at PetroChina Lanzhou Petrochemical, PetroChina Fushun Petrochemical, Shen Hua Chemical Industrial and Hangzhou Yibang Rubber increased. No ESBR producer experienced an output decrease in January. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In January, China’s ESBR market prices first rose and then went down. In H1 January, ESBR market prices fluctuated upwards amid weakening bearish sentiment and a rise in ESBR offers. However, butadiene prices were low, and the end procurement was weak. With relatively abundant supply, the continuous increase in ESBR prices came under pressure. In H2 January, ESBR prices trended down, and the trading atmosphere was tepid. In January, the theoretical profit from producing ESBR was RMB 2,836/mt, down RMB 775/mt M-O-M. This month, the feedstock butadiene and styrene prices went up, and the increment in ESBR prices was notably smaller than that in the feedstock prices. Thus, the profit declined.
China’s ESBR monthly output will inch down M-O-M in February.
In January, China’s ESBR monthly output will be 102.8kt or so, down 7% M-O-M and up 26% Y-O-Y. In February, the monthly output at Sinopec Qilu Company, Nanjing Yangzi Petrochemical and Rubber, PetroChina Jilin Petrochemical, PetroChina Lanzhou Petrochemical, Zhejiang Vitile Rubber and Bridgestone (Huizhou) Synthetic Rubber will be normal. The monthly output of other producers will be largely unchanged. The M-O-M decrease in ESBR monthly output is mainly due to only 28 production days in February. On the whole, the monthly output will edge down in February, but the daily output will be largely unchanged from last month. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in February.
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