Oil-Extended SBS Prices Hit a New Low

Oil-Extended SBS Prices Hit a New Low

Oil-extended SBS F875 at Sinopec South China Marketing dropped to RMB 11,200/mt, hitting a new low in 2018. SCI will analyze the recent oil-extended SBS market status based on the following aspects.

Cost: butadiene prices were stable.

Up to December 26, the butadiene price at Sinopec East China Marketing was RMB 9,700/mt, and the styrene price was RMB 7,850/mt. At present, the T171E price at PetroChina East China Marketing is RMB 11,300/mt, and the profit at producers is RMB 207/mt.

Output: oil-extended SBS output hovered at highs in December.

In December, the monthly output hovered at highs, and the operating rates in mainstream producers were stable. Within this month, the spot supply at PetroChina was tight. Sinopec sold with profit losses in order to achieve its sales target.

Downstream demand: the demand from the shoe material market was soft.

In December, orders at shoe material producers were a few, so they adopted passive attitudes towards the oil-extended SBS procurement. However, with the further oil-extended SBS price decrease, some market participants stocked up.

Different sentiment in the oil-extended SBS market.