German Styrene Butadiene Rubber Prices Soars Further In June 2022

The elastomer market has been unable to resist the ongoing inflation, and the latest spike has been observed in the prices of Styrene-Butadiene Rubber (SBR). Inflation in the European market has been off the charts since the beginning of the Ukrainian crisis, and all commodities markets have borne the brunt of it. The petrochemical market has been no different. Crude oil has been through the roof while natural gas prices have limited sources and hence a substantial price jump since Europe cut ties with the Russian energy market.

SBR prices have ascended by 2.2% in the first week of June 2022 on a weekly basis and were assessed at USD 3920 per MT on FD basis. SBR prices have been rising consistently in the last few months. Since the beginning of the 2nd quarter price shave risen by more than USD 600 per MT putting massive price pressure on the consumers.

The automotive and construction industry has shown encouraging signs and is on the road to recovery after a gloomy start to Q2. Several industry experts have portrayed those European industries will bounce back and show strong market dynamics in the coming quarters.

Meanwhile, in the feedstock markets, refiners have been unable to keep the operating rates despite high margins. All three feedstocks, Styrene, Butadiene, and natural rubber have been on the rise owing to a consistent rise in upstream markets.

All key elastomers have witnessed similar inflation levels in the last couple of months, and feedstock markets have been haywire while supply disruptions continue to plague global supply value chains.

As per ChemAnalyst, “Styrene-Butadiene market is expected to remain firm in the short term as demand pressure is likely to increase as construction and automotive industry observe recovery after a devastating slump in early Q2. Europe continues to struggle for energy security as economic sanctions on Russia pile up.”