SunSirs: China NBR Market Is Running Weakly in September

The NBR market slightly declined in September. According to the Commodity Market Analysis System of SunSirs, as of September 28th, the price was 16,600 RMB/ton, a decrease of 0.30% from 16,650 RMB/ton at the beginning of the month.

In September, the cost support for NBR was weak, and the increase in NBR production increased the pressure on the market supply side; In addition, during the traditional peak season downstream, the production of rubber hoses and insulation foam industries has significantly increased, which supports the NBR market. The comprehensive impact has led to a slight consolidation of the NBR market in September. As of September 28th, the mainstream market price for Lanhua 3305 in East China is around 16,300-16,400 RMB/ton; The mainstream market price for Nandi Nitrile 1052 is around 17,500-17,600 RMB/ton; The mainstream market price for nitrile 2665 in Russia is around 15,900-16,000 RMB/ton.

In September, the domestic NBR plant started construction and increased, and the Shunze nitrile plant has recently restarted; As of September 28th, the overall production of NBR in China is around 80%.

In September, the price of raw material butadiene slightly decreased and the price of acrylonitrile slightly increased, resulting in weak cost support for NBR. According to the Commodity Market Analysis System of SunSirs, as of September 28th, the price of butadiene was 9,023 RMB/ton, a decrease of 3.15% from 9,316 RMB/ton at the beginning of the month; As of September 28th, the price of acrylonitrile was 8,033 RMB/ton, an increase of 1.26% from 7,933 RMB/ton at the beginning of the month.

In September, the construction of downstream rubber hoses for NBR in China increased from 40% at the beginning of the month to a low of around 5.8%, and the construction of rubber insulation and foaming increased from 32% at the beginning of the month to around 49%. The demand for NBR needs to be supported.

SunSirs nitrile analyst believes that the cost support for NBR is currently weak; Downstream production has increased but remains at a low level, providing essential support for NBR; The supply of NBR has increased compared to the previous period, and it is expected that the NBR market will fluctuate and consolidate in the later period.

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