June NBR Operating Rate Rallied

The operating rate of the NBR industry was 66.1% in June, up about 4% from last month. NBR producers maintained normal production this month, so the operating rate did not change greatly.

1. China’s NBR Units Running State

2. China NBR Units Operating Rate

The operating rate of the NBR industry was 66.1% in June, up around 4% from last month. NBR producers maintained normal production this month, so the operating rate did not change greatly. The 50kt/a unit at PetroChina Lanzhou Petrochemical produced 3305E and 3308E during the month, and the 15kt/a unit produced N41E in H2, June. The units at Ningbo Shunze Rubber, IGSR and ARLANXEO TSRC ran normallythis month.

3. China NBR Monthly Output

The total output of NBR was about 13,770mt in June 2018, up 6.74% from last month and up by 14.75% from last year. The resources of NBR from PetroChina Lanzhou Petrochemical were not sufficient. Market prices of NBR were basically stable. Affected by the SCO summit and the wheat harvest season, the operating rates at some downstream plants in northern China reduced somewhat. Thus, the consumption volume of NBR slipped.

4. Forecast

The NBR units are likely to run stably in July. The 15kt/a unit at PetroChina Lanzhou Petrochemical produce N41E. It is heard that the company plans to switch the 15kt/a unit to produce 2805E. Other NBR producers run their plant normally. SCI predicts that the operating rate of the NBR industry will remain stable next month.