China SBR and PBR Markets after Chinese New Year Holiday
The above two producers’ unit shutdown impacted about 3-4kt of HCBR output. Except for the two producers, other HCBR producers were under normal production. China’s ESBR units ran steadily, and the overall operating rate of ESBR units remained at 86% or so, unchanged from that before the holiday.
As seen from the table above, on February 7, the ESBR 1502 and HCBR 9000 rose from January 30 by 1.5%-2%. International crude oil prices rose by 2%-5% during the Chinese New Year holiday. After the holiday, the price of Shanghai natural rubber futures significantly increased, and the butadiene price rebounded. However, SCI learned that some tire enterprises delayed the production resumption date. The downstream demand will hardly improve in the short term.
After February, China’s HCBR monthly output will increase to 10-100kt, and the operating rate of China’s ESBR industry will remain at over 85%. Therefore, the rebound in ESBR and HCBR prices will hardly continue.
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