The synthetic rubber market is depressed, and the rising pace of butadiene price may stop

It is reported that due to the deterioration of profits, the downstream synthetic rubber manufacturers of butadiene are further reducing production, and the spot price of butadiene in Asia may stop rising.

According to ICIS data, the spot price of butadiene in Asia has risen by 13% in just one month since the end of May. On June 20, the average spot price of butadiene in Asia rose to US $1475 / ton (CFR Northeast Asia). A trader said: "this week has seen a weakening of buying sentiment because buyers are not interested in spot butadiene quoted at more than US $1450 / ton (CFR Northeast Asia)." Another trader said: "as a large number of buyers have begun to withdraw from the market, the butadiene market is weakening at present." A major butadiene buyer said: "we will wait for the price to go down and take a wait-and-see attitude at present."

The slowdown of China's economic growth has led to the weakness of the synthetic rubber market in Asia, and some major synthetic rubber manufacturers in Asia have been reducing their production. If butadiene prices continue to spiral, BR, SBR manufacturers in China, Korea and China will plan to further reduce production.

A Chinese styrene butadiene rubber producer said: "affected by the sharp rise in the price of raw butadiene, styrene butadiene rubber production has been at a loss, and the shutdown time of styrene butadiene rubber plant will be extended."

South Korea Jinhu Petrochemical Company, the largest synthetic rubber producer in Asia, has planned to further reduce the operating rate of its 340000 T / a cis polybutadiene rubber unit from the current 45% to 35% in July, and plans to further reduce the operating rate of 560000 T / a styrene butadiene rubber unit from the current 85% to 75% - 80% in July. Taiwan synthetic rubber company has significantly reduced the operating rate of a 100000 t / a styrene butadiene rubber plant in Kaohsiung from 100% to 60% - 70% since June 25. "If the price of raw butadiene continues to rise, the operating rate of the unit will remain at a low level of 60% - 70% from now until the end of August, but will be shut down in September," the company's management said China Shenhua chemical will extend the shutdown time of one of its styrene butadiene rubber units by one week to July 16, which is mainly due to the impact of the rising price of butadiene and the loss of styrene butadiene rubber production. The company has three 60000 T / a styrene butadiene rubber production lines in Nantong, Jiangsu Province. The three production lines were shut down on June 15 for 25 days of maintenance, and two of them will be restarted as planned on July 10.

Source: China Petroleum and chemical network