Recovery in Automotive Industry Boost the Polybutadiene Rubber Market in the USA
- 01-Feb-2023 4:44 PM
- Journalist: Nina Jiang
FOB, Texas: During the fourth week of 2023, the market value of Polybutadiene Rubber (PBR) in the USA climbed significantly. Polybutadiene Rubber pricing for FOB Texas increased by 4.2% during the week ending January 27. According to experts, the main causes of this price increase are the recent breakdown of China's zero-Covid policy and the imminent mild recession. Numerous market analysts believe that after reaching the inflation peak, the U.S. economy will shortly experience a mild recession. Given that inflation has already reached a high point and is currently heading toward a moderate scenario, a soft landing is anticipated for the market.
Researchers assert that rising auto sales in the USA and the anticipated start of a mild recession are related, which would eventually increase the Polybutadiene Rubber market price. There is already a need for automobiles in the country to combat economic hardships and interest rates. Additionally, by lifting several limitations related to its zero-Covid policy, China has finally opened its market, allaying concerns about the supply chain.
Since China is one of the world's largest producers of semiconductors, automakers in the USA will breathe easy now that the Chinese market is open once more. Almost all the supply chain issues the automotive industry had with semiconductors and other components have been resolved, which would improve artmobile manufacturing and raise demand for Polybutadiene Rubber. Demand for Polybutadiene Rubber has grown, which eventually raises the material's market value at a time when the USA market for the downstream automotive industry is beginning to show signs of recovery.
According to ChemAnalyst, "The Polybutadiene Rubber prices will grow more in the next weeks based on soaring demand from the automobile industry as the automotive industry is predicted to recover more in the USA market. Additionally, it is anticipated that the downstream demand for Polybutadiene Rubber from the global market will further increase in the forthcoming weeks, backing up the price increment in the Polybutadiene Rubber market."