A Surge in the U.S. HBR Prices: Whom to Blame, Mild Recession or China's Zero Covid Policy Abandonment?
- 19-Jan-2023 3:29 PM
- Journalist: Francis Stokes
Texas, USA: The market value of Halo Butyl Rubber (HBR) has suddenly showcased a significant rise in the U.S. market during the second week of 2023. During the week ending on 13th January 2023, HBR BIIR prices increased by 1.4% for FOB Texas. ChemAnalyst researchers are pointing out the mild recession and the dismantling of zero Covid policy by China to be the factors behind the price rise. As per several market experts, the U.S. economy is on the verge of a mild recession after inflation peaked there. The market is expected to experience a soft landing as inflation has already touched heights, and now the market is moving towards a moderate scenario. The global GDP growth is now expected to slow down by approximately 1.7% in 2023, estimated at around 2.7% in 2022.
As experts suggest, automotive sales are expected to increase in the U.S. market during the period of a mild recession, which would back up the price hike of HBR in the market. Although there are economic headwinds and borrowing costs are rising, there is already pent-up demand for automobiles to counter the same resulting in rising inquiry for HBR. Furthermore, as China has lifted several restrictions in connection with its zero Covid policy, the Chinese market has finally been open to a greater extent, which has resolved several supply chain issues.
China is one of the major semiconductor suppliers in the world, and this reopening of the Chinese market has surely been providing relief to the U.S. automotive manufacturing industries. The supply chain problems involving semiconductors and other components of the automotive industry have essentially been handled, which would increase the production of automobiles, resulting in soared-up demand for HBR.
As per ChemAnalyst's anticipation, "Amidst better availability of semiconductors and increased demand for automotive, the offtake of HBR would surge in the upcoming weeks, eventually resulting in its incremented market value of HBR."
