June China ESBR Output to Decline
In May 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.
May slight M-O-M decrease in China’s ESBR monthly output
In May, China’s ESBR monthly output was 91.9kt or so, down 1.02% M-O-M and up 3.49% Y-O-Y. The output at PetroChina Fushun Petrochemical, Shen Hua Chemical Industrial, Zhejiang Vitile Rubber, Huizhou LCY Elastomers and Hangzhou Yibang Rubber decreased by 4.2kt M-O-M. The output at Sinopec Qilu Company and PetroChina Lanzhou Petrochemical rose somewhat. On the whole, the ESBR monthly output in May dropped by 1kt or so from last month. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber remained shut.
In May, China’s ESBR market prices first decreased and then rose. In H1 May, the demand for ESBR did not improve. The uncontrollable factor caused unsmooth transportation of tires, and anticipated orders did not increase. Consequently, the circulation of ESBR spot resources was stagnant. In the context that the ESBR supply was ample, ESBR prices went down amid weak fundamentals. In mid-May, the prices of Shanghai natural rubber futures and butadiene rose, facilitating ESBR prices to some extent. Besides, the anticipated shutdown and operating rate reduction of some ESBR units led to an increase in ESBR prices. However, sales at high prices came under pressure. In May, the theoretical profit from producing ESBR was RMB -1,349/mt, down RMB 534/mt M-O-M. This month, the increment in ESBR prices was notably lower than that in feedstock prices, so ESBR producers’ marginal benefit went down.
June China’s ESBR monthly output to show an M-O-M drop
In June, China’s ESBR monthly output is estimated at 79.3kt or so, down 13.71% M-O-M and down 9.98% Y-O-Y. In June, the output at Sinopec Qilu Company, PetroChina Lanzhou Petrochemical, PetroChina Fushun Petrochemical, Zhejiang Vitile Rubber and Hangzhou Yibang Rubber is predicted to decrease. That at Shen Hua Chemical Industrial is predicted to slightly rise. Other ESBR producers’ output will have no obvious adjustments. On the whole, the monthly output is predicted to drop by 12.6kt or so in June. The units at Fujian Fuxiang Chemical and Tianjin Lugang Petroleum Rubber will remain shut in June.
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