Chinese polybutadiene rubber (PBR) prices are firming following an explosion at the 100,000 t/yr Sinopec Maoming complex in south China's Guangdong province on 15 March, which left one dead and five injured.
Delivered PBR prices have risen by 700 yuan/t ($108/t) from the previous week to Yn13,700/t currently. PBR import offers are holding steady so far, although producers are expected to begin raising prices as the synthetic rubber is in short supply through Asia-Pacific. Taiwanese PBR offers are holding steady at $2,150/t cfr China.
The impact on feedstock butadiene (BD) has been muted as the 640,000 t/yr cracker, together with the 100,000 t/yr BD extraction unit, were scheduled to have a month-long maintenance starting on 25 March. East China BD prices are holding steady around Yn8,200-8,500/t ex-tank. Sinopec has also maintained its list price steady at Yn8,500/t ex-works.
It remains unclear how long the Sinopec Maoming PBR unit will remain shut. The company is looking at a shutdown of at least 45 days given the severity of the blast, according to some market participants. This indicates there will be more merchant BD flowing into the market following the completion of the Maoming cracker and BD unit maintenance at the end of April to early May.
