January NBR Operating Rate Continued to Go Upwards

As shown in the above chart, the average operating rate of NBR units in China was 68.16% in January, up 10.50% from last month. Ningbo Shunze Rubber shut down the unit in late January because of the Spring Festival holiday. Other producers maintained normal operation. The 50kt/a unit at PetroChina Lanzhou Petrochemical produced 3305E and 3308E. The 15kt/a unit produced N41E. Zhenjiang Nantex Chemical, ARLANXEO TSRC and IGSR maintained normal production in the month.

In January 2019, the NBR output was 14.2kt in China, up 10.08% from last month and up 13.16% from last year. NBR producers in China maintained normal production. Affected by the Spring Festival holiday, Ningbo Shunze Rubber shut down the unit in late January. The supply from PetroChina Lanzhou Petrochemical was still tight. Tradable goods in the market were limited, which supported the market prices of NBR. The EXW prices of NRB from Ningbo Shunze Rubber and IGSR also went upwards. The downstream demand was still weak. The trading atmosphere obviously weakened as the Spring Festival holiday drew near.

4. Forecast

In February, Ningbo Shunze Rubber and ARLANXEO TSRC will shut down the unit for the Spring Festival holiday. The operating rate at other producers will also move downwards. Overall, the operating rate of the NBR industry will slip in February, so the output will reduce somewhat.

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