Europe Experiences Drop in Polybutadiene Rubber Prices as October Concludes
- 01-Nov-2022 6:09 PM
- Journalist: Shiba Teramoto
Hamburg, Germany: Polybutadiene Rubber prices have recently been falling in the European market owing to lower production costs and improved supply chain conditions. Though the market value of Polybutadiene Rubber has been declining since the beginning of the month, the percentage of price drops has increased significantly in the last week. During the week ending October 28, the price of Polybutadiene Rubber (PBR) was USD 2500/MT FOB Hamburg, indicating a 4.2% decrease compared to the last week when it was settled at USD 2610/MT FOB Hamburg. This downward trend in PBR prices will likely trace its existing path in the upcoming weeks.
As gas prices have fallen in the European market, the cost of production for Polybutadiene Rubber has decreased, for the time being, resulting in lower upstream costs and resulting in a decrease in its market prices. However, experts believe this drop in gas prices is only temporary, and the market will be in trouble again when Europe will hit peak winter, bringing increased demand for energy. Though downstream demand from the automotive and tire industries has improved in Europe, it is still insufficient to impact the market significantly. Polybutadiene Rubber market is still supply-side biased and is governed by Polybutadiene Rubber's upstream activities.
Furthermore, as port congestions, vessel bunching, and yard occupancies have decreased in the region as compared to previous weeks, the supply chain has been operating much better than before, resulting in cheaper imports and better material availability in the market. As a result, the lower market price of Polybutadiene Rubber is being supported by normalcy in the supply chain.
According to ChemAnalyst, "The Polybutadiene Rubber value would continue to fall in the European market in the next one or two weeks, owing to improved supply flow in the market." However, the situation could change if energy demand rises or demand for Polybutadiene Rubber surges in the market."