SunSirs: China NBR Market Fluctuated steadily in December 2022

In December, the market of NBR fluctuated steadily and slightly. According to the monitoring of SunSirs, as of December 27, the price was 15,025 RMB/ton, 0.83% lower than 15,150 RMB/ton at the beginning of the month, and the monthly low was 15,000 RMB/ton. In December, NBR was in a weak balance between supply and demand, and the factory price of NBR for enterprises was stable. As of December 27, the factory price of NBR N41 for Lanhua was 13,400 RMB/ton. With the decline of NBR price, downstream inquiries increased at the beginning of December, but in the middle of December, affected by COVID-19, downstream construction and logistics were limited, and the market fell slightly. However, businesses were not willing to ship at low prices, and the price of NBR fluctuated narrowly at the bottom. As of December 27, the mainstream offer of Shunze NBR 3355 market in East China was 14,200-14,500 RMB/ton, the mainstream offer of Lanhua NBR 3305 market was 14,200-14,500 RMB/ton, and the mainstream offer of Nandi NBR 1052 market was 17,700-17,900 RMB/ton.

In December, the domestic NBR plant started to work steadily, and the supply of NBR continued to be loose. Lanzhou Petrochemical 100,000 t/a nitrile unit operates normally; The 30,000 t/a NBR plant of Nanjing Jinpu Insa Synthetic Rubber Co., Ltd. is in normal production; The 30,000t/a NBR plant of Arantai Rubber operates normally; Zhenjiang Nandi 50,000 t/a NBR plant operates normally; Ningbo Shunze 65,000 t/a unit operates normally.

In December, the price of raw butadiene rose sharply, while the price of acrylonitrile fell sharply. The cost of butadiene acryloNBR was still supported by butadiene. According to the monitoring of SunSirs, as of December 27, the price of butadiene was 6,985 RMB/ton, up 9.01% from 6,407 RMB/ton at the beginning of the month; As of December 27, the price of acrylonitrile was 9,620 RMB/ton, down 8.38% from 10,500 RMB/ton at the beginning of the month.

After the off-season in December and the opening of the national immunization policy, the downstream construction began to decline in a short period of time, and the demand was weak. At the end of the month, with the resumption of construction in various regions, market inquiries increased, and the demand was again supported by NBR. The offer of merchants was gradually strengthened.

NBR analysts from SunSirs believe that at present, the bottom of the NBR industry chain is consolidated, and it is still difficult to support the NBR market to rise in the short term; Later, with the recovery of downstream commencement, NBR may usher in a rising market after obtaining bottom support.

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