German Neoprene Rubber Prices Move Further Upwards in June 2022
- 30-Jun-2022 4:56 PM
- Journalist: Robert Hume
Neoprene rubber has continued its bullish rally in the German market owing to firm feedstock prices, strong international market pricing, and supply constraints in Europe. In recent months, several commodity markets have witnessed persistent price increases on the back of the Ukrainian crisis and soaring energy prices. The elastomer market has also witnessed a similar pattern where prices continue to move northwards.
Neoprene rubber prices have been at record levels and assessed at USD 6485 per MT on FOB Hamburg, with an increase of 3.7% in June since the conclusion of May 2022.
Producers and distributors have been able to transfer the burden of exorbitant prices onto the consumers; however, consumers have been left with limited choice and have been facing the wrath of a continuous surge in Neoprene prices in Europe.
Meanwhile, demand from downstream industries has been weak to stable owing to growing speculations around the recession, deterring consumer sentiment in the global market. The inflation rate has been off the charts since the Russian invasion of Ukraine; meanwhile, food prices have gone up while the fertilizer market has witnessed its biggest boom in the last two quarters. Administrations have been scrambling to contain energy prices but to limited avail.
As per ChemAnalyst, “Neoprene rubber outlook in the European market appears to bearish in the coming weeks owing to deteriorating consumer sentiment and growing inflation. Domestic prices are expected to remain stable while imported materials are likely to stay cheap in the coming weeks. Europe has been moving ahead from the Ukrainian crisis, and industries have shown early signs of resurgence; however, the looming threat of recession may undermine the recovery of the European economy.”