SBR VS. PBR: Which is More Eye-Catching?

SBR and PBR prices picked up in July. Taking Shandong market as an example, Sinopec Qilu Company’s SBR 1502 prices increased from RMB 11,900/mt to RMB 12,700/mt, up 6.72%. The PBR 9000 prices rose from RMB 11,800/mt to RMB 13,500/mt, up 14.41%. After comparison, the growth of PBR prices was larger than that of SBR prices, and PBR prices were raised more frequently. What’s the reason from the perspective of supply? 

The BD market performed well in H1 of 2018. BD units underwent overhauls intensively in Q2 of 2018. Thus, BD prices were higher than SBR and PBR prices, placing high cost pressure on downstream plants. Theoretically, SBR plants suffered RMB 1,500/mt of loss, and the average operating rate fell from 58% in Q1 of 2018 to 49%. PBR plants suffered RMB 1,700/mt of loss, and the average operating rate dropped from 61% in Q1 to 48%.

As for the output, in Q2 of 2018, the ESBR output at Sinopec and PetroChina was largely stable. The average output at Sinopec was 18kt, and that at PetroChina was 20kt. The output was raised greatly in July, and supply was sufficient.  

……

If you want to see more, please click "Read more".