Imbalanced Supply-Demand Fundamentals in China SBR and PBR Markets
China’s SBR and PBR market prices decreased recently, mainly dragged down by the prices of NR futures at the SHFE and weak end demand. Some SBR and OBR units under shutdown are scheduled to be restarted in May, and then the supply will increase significantly, while the tire industry will usher in the slack production season. With the supply-demand fundamentals weakening, what’re the influences on China’s SBR and PBR markets?
In May, PetroChina Fushun Petrochemical, Nanjing Yangzi Petrochemical and Rubber, Sinopec Maoming Company, Sinopec Beijing Yanshan Company and China Zhenhua Oil plan to restart the HCBR units. If the production becomes normal, the monthly output of SBR will increase by 21kt or so, and that of PBR will increase by 25kt or so. Given that PetroChina Jilin Petrochemical, Hangzhou Yibang Rubber and Zhejiang Transfar Synthetic Materials shut units down for maintenance, the increment in output will be impacted. The overall output of SBR and PBR will increase, and the operating rate of China’s SBR industry and PBR industry will increase to over 70%.
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