China SBR extends fall as new Qilu plant gears for start-up

07 May 2009 05:28  [Source: ICIS news]

SINGAPORE (ICIS news)--China styrene butadiene rubber (SBR) extended its falls this week as players anticipate more supply to be injected into the market late this month, when Qilu Petrochemical’s new plant starts production, traders said on Monday.

The company's 100,000 tonne/year plant located at Zibo in eastern China is scheduled to gear for a start-up in the middle of this month..

Domestic non-oil grade 1502 SBR values in China fell for the second week, shedding yuan (CNY)400-600/tonne ($58.7-87.98/tonne) to CNY12,400-12,500/tonne ex-warehouse (EXWH).

There was ample supply of imported SBR cargoes while expectations of more domestic supply weighed on buying sentiment, traders said.

“For now, everyone is watching the market and waiting for a clearer picture before they decide to commit,” a Chinese trader said.

SBR prices in China had been on an uptrend from CNY 11,600-12,200/tonne EXWH at the end of March to CNY 12,700-13,500/tonne EXWH in second-half of April but started to come off ahead of the Labour Day holidays.

Qilu Petrochemical, which is a subsidiary of state-owned refiner Sinopec, also has a 150,000 tonne/year SBR and a 50,000 tonne/year butadiene rubber (SBR) plant in Zibo.

($1 = CNY6.82)

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By: Helen Yan
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