Active Downstream Demand Accelerates Nitrile Butadiene Rubber Prices in South Korea

Busan, South Korea: In South Korea, the prices of Nitrile Butadiene Rubber have demonstrated an upward momentum amid active demand fundamentals in the third week of April 2023. As per the market sources, local factories manufactured 409,806 automobiles in March, up 35.6% from a year earlier and leading 400,000 for the first time in six years. However, the correction observed in raw material, Acrylonitrile, and Butadiene prices was insufficient to offer adequate cost support to the price realizations of Nitrile Butadiene Rubber, and the price rise was mainly attributed to the elevated inquiries from the domestic downstream automotive sector.

The ChemAnalyst database has shown that Nitrile Butadiene Rubber offers have surged by USD 180 per ton in the week ending 21st April, compared to the prices observed in its last week. In order to maintain consistent earnings this year, the company officials of one of the leading market players, Kumho Petrochemical, have emphasized the implementation of the corporate idea of strategic agility, which includes insights, agility, and flexibility, as its operational strategy. Furthermore, the rise in electricity rates in the domestic region has further led to an upshift in the operating costs of Nitrile Butadiene Rubber.

However, on the other hand, the economic gloom surrounding the major economies of Europe has not dissipated. The moderate demand from the European countries and high levels of stocks has weakened the Nitrile Butadiene Rubber market sentiments. As a result, a slump has been observed in the manufacturer’s quotations. Overall, the persistent inflationary pressure has further limited the purchasing sentiments of the end-use industries.

According to the pricing intelligence of ChemAnalyst, the price trends of Nitrile Butadiene Rubber might remain under pressure owing to weak demand fundamentals. In addition, the uncertainty of Crude Oil prices after another interest rate hike announcement by the Federal Reserve has also dampened the market dynamics of several elastomers, including Nitrile Butadiene Rubber. Thus, a bearish market trend is anticipated in the forthcoming weeks.