February NBR Operating Rate Declined

The operating rate of China’s NBR industry was 56% in February, down by 4% from last month. This was mainly because Ningbo Shunze Rubber and ARLANXEO TSRC shut down the unit, due to the Spring Festival holiday.

1. China’s NBR units running state

2. China NBR Units Operating Rate

The average operating rate of NBR units in China was 56.16% in February, down 4% from last month. The 15kt/a unit at PetroChina Lanzhou Petrochemical produced N41E this month, and the 50kt/a unit produced 3305E and 3308E. Affected by the Spring Festival holiday, the unit at Ningbo Shunze Rubber and ARLANXEO TSRC was shut down for 1-2 weeks.

3. China NBR Monthly Production

The total output of NBR was about 11,300mt in February 2018, down by 6.4% month-on-month and down by 1.68% year-on-year. Affected by the Spring Festival holiday, the unit at Ningbo Shunze Rubber and ARLANXEO TSRC was shut down for 1-2 weeks. Other units ran normally.

Trading volume was limited, due to the effect of the Spring Festival holiday. Market supply at NBR producers was not ample, and NBR prices were moslty stable. Traders and downstream users replenished stocks in small amounts. The marekt supply was still tigth after the holiday. As downstream plant gradually recovered proudction after the holiday, the demand increased. Players held bullish expectations, and marekt offers inched up.

4. Forecast

SCI holds that NBR producers will maintain the normal production in March, and the overall output will increase. And the operating rate of the NBR industry will improve somewhat.

2017 saw violent price fluctuations of NR, carbon black and additives. Many rubber companies experienced the unprecedented “rubber quake”