Feb China HCBR Supply to Decrease
In January 2022, there were 17 China’s HCBR producers being investigated, with a total capacity of 1,362kt/a. Therein, 7 produces were in North China, 3 in East China, 2 in South China, 2 in Northeast China, 2 in Northwest China, and 1 in Southwest China.
China’s HCBR monthly output in January increased M-O-M.
In January, China’s HCBR monthly output was 101.1kt or so, up about 8.24% M-O-M and up 17.15% Y-O-Y. As for the state-owned enterprises, the unit at Nanjing Yangzi Petrochemical remained shut. Other state-owned units ran steadily. The monthly output at state-owned HCBR enterprises decreased by about 1.37% M-O-M. As for private HCBR enterprises, the units at Shandong Wintter Chemical, China Zhenhua Oil and Shandong Huayu Rubber resumed normal production. The monthly output at private HCBR enterprises rose by 24.22% from last month.
In January, butadiene prices were low, and the PBR industry had a considerable profit. The prices of some private resources were relatively low after private producers increased supply, dragging down the price fluctuation range to some extent. Besides, the trading atmosphere turned tepid amid high evaluation HCBR prices, anticipated supply increase and weak downstream demand. In H2 January, downstream plants successively suspended production for the Chinese New Year holiday, resources flowing into downstream plants were limited. Up to the end of January, the theoretical profit from producing HCBR was around RMB 4,800/mt or so.
China’s HCBR output in February is estimated at 88kt or so.
In February, the unit at Nanjing Yangzi Petrochemical will remain shut. Zibo Qixiang Tengda Chemical, Shandong Huayu Rubber and PetroChina Sichuan Petrochemical will reduce output. Moreover, there are only 28 production days in February. Thus, on the whole, China’s HCBR monthly output may drop to 88kt or so in February.
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