European Styrene Butadiene Rubber Prices Impaired with Improved Supply Chain
- 19-Dec-2022 5:41 PM
- Journalist: Patricia Jose Perez
Germany- In the last phase of Q4 2022, the prices of Styrene Butadiene Rubber (SBR) continued to follow the southward momentum along with the declining feedstock Butadiene prices in the European market. The demand for the SBR from the downstream automotive sector also remained slow despite the improvised supply chain. In the second week of December 2022, the prices of SBR ranged between USD 2780-2940/MT, FD Wuppertal (Germany).
The automotive sector has major applications of SBR. In the European market, the automotive industry rebounded thanks to the ease of semiconductor and container availability in the regional market. Backlogs were cleared and the demand for the product improvised in the last three months. According to the market insiders, some significant players reduced the operational capacity in the previous quarter, consequently declining the product outlook. As a result, the end users used the available stockpile (SBR) to cater to domestic demand. However, the energy crisis in the European market is still persistent and has impacted the demand strength, according to some market participants.
The European Commission proposed the Corporate Sustainability Due Diligence Directive (CSDD), a scheme for legislation governing corporate sustainability requirements, on February 23, 2022. Member states approved the European Union's supply chain regulation in December 2022, and the European Parliament will take the following steps in May 2023. The plan, which goes well beyond current national law, would require trading to carefully oversee social and environmental implications throughout their supply chains, including in their commercial activities.
As per ChemAnalyst, the market sentiments of SBR may continue to follow the declining pace despite an incline in feedstock Styrene prices. As the festive week approaches, the commercial and automotive sector demand is anticipated to incline. The easy availability of feedstock and the slight decline in the inflation rate in the European region impacted the overall market of SBR.