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Falling Demand Causing the Price Drop in European Isoprene Rubber Market

Falling Demand Causing the Price Drop in European Isoprene Rubber Market

Falling Demand Causing the Price Drop in European Isoprene Rubber Market

  • 12-Dec-2022 3:45 PM
  • Journalist: Nicholas Seifield

Hamburg, Germany: After showcasing a stable market trend during the first week of December 2022, Isoprene Rubber's price decreased in the European market during the second week. Isoprene Rubber costs have declined majorly because of two key issues, falling natural gas prices and weak downstream demand. The price of Isoprene Rubber MV (60-80) in the week ending December 2nd was USD 1948/MT FD Hamburg, indicating a weekly decline of 2.4%. It is not that Isoprene Rubber has been an exception; recently, many elastomers' prices have been dropping significantly.

Amidst worries about the impending recession, the downstream automotive and tire industries' demand for Isoprene Rubber plummeted as their sales decreased. The abundant natural gas supply has also helped stabilize the market and reduce its price since European natural gas reserves have been filled with sufficient stocks. Prices for specific elastomers have been seen as falling because Europe is avoiding a catastrophic energy crisis and maintaining a balanced natural gas market.

Additionally, since port congestions are minimal and there are fewer yard occupancies, supply chains operate effectively, assuring regular material flow in the market. Consequently, the current stocks are able to satisfy any demand from the downstream industries easily. Conclusively, various causes, including lower demand, declining natural gas costs, and alleviating supply chain problems, are all responsible for Isoprene Rubber's declining market value in the European market.

As per ChemAnalyst anticipations, "In the upcoming weeks, it is estimated that falling natural gas prices and unfavorable market sentiments would lead the price of Isoprene Rubber to keep going down. Furthermore, as December accounts for the month of destocking, manufacturers do not mind selling their goods at a discounted price, which would eventually bring down the Isoprene Rubber prices even more in the forthcoming weeks. In addition, As significant holidays approach, it is also anticipated that demand would decrease even more."

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