Strong Recovery in Automotive Industry, Causing the Polybutadiene Rubber Price to Skyrocket

Texas, USA: The FOB price of Polybutadiene Rubber in the USA market increased by 8.3% during the week ending on February 10. Amidst rising demand from the downstream tire and automotive industries in the global market, the price of Polybutadiene Rubber on an export or FOB basis increased. Experts claim that the upcoming mild recession is the primary cause of this price increase in the Polybutadiene Rubber market. Many market analysts believe that the U.S. economy will experience a minor recession soon as inflation reaches its peak. A soft landing is anticipated for the market because inflation has already reached a peak and is currently heading toward a moderate scenario.

Researchers assert that there is a link between rising U.S. auto sales and the anticipated commencement of a mild recession, which would ultimately increase the market price of Polybutadiene Rubber. The nation already had a continuous need for automobiles that were not being met due to the recession and rising borrowing 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 top semiconductor producers in the world, U.S. automakers may now breathe a sigh of relief knowing that the Chinese market is once more open. The automotive industry's supply chain issues with semiconductors and other parts have been almost resolved, improving vehicle manufacturing and raising demand for Polybutadiene Rubber. The demand for Polybutadiene Rubber has grown since the downstream automotive market in the U.S. is beginning to show signs of recovery, which eventually raises the material's market value.

According to ChemAnalyst, "The Polybutadiene Rubber prices will further rise in the future weeks as the U.S. market is projected to witness expansion in their automotive and tire industries, ultimately driving up the offtake of Polybutadiene Rubber in the market."