Nitrile Butadiene Rubber Prices Decline Sustained in the First Week of December 2022
- 02-Dec-2022 3:00 PM
- Journalist: Nina Jiang
Nitrile Butadiene Rubber (NBR) prices have been on the lower edge in the global market. The lower offtakes from the downstream rubber and automotive industries have decelerated major elastomers' market value. The adverse development in the automotive sector has been reflected in global economic growth. Global economic progress is largely dependent on the activities of the automobile sector due to the integration of a wide range of initiatives. The automotive industry contributes around 3% of the world's GDP, and the major share comes from emerging markets like India and China.
The ChemAnalyst database has demonstrated that the prices of NBR are hovering around USD 3704 per tonne on a CFR basis on 2nd December 2022 in Germany. The price decline was narrowed as the market transactions from the downstream automotive industries remained softer. Furthermore, according to data released by the National Bureau of Statistics (NBS), the official Purchasing Manager Index (PMI) was observed as 48.0 in November 2022 against 49.2 in the previous month. The sluggish factory, driven by weak domestic and foreign demand as COVID-19 has spread in China, pressured the market sentiments of NBR.
On the other hand, manufacturing has also contracted in export-reliant countries, including Japan and South Korea. The exports from the major manufacturing country have been reduced amid cooling market conditions and sustained cost pressures. The market players have reported that the downstream rubber products industries operated at a low level. The demand for NBR was inadequate, and the market turnover was light. As a result, NBR 41%-66% prices witnessed a decrement of USD 20 per tonne in its FOB prices in the first week of December.
As per ChemAnalyst, the sustained downturn in demand from the rubber industries is anticipated to impact the market fundamentals of NBR. In addition, the upstream Acrylonitrile and Butadiene oversupplies might persuade the new production of NBR in the forthcoming weeks.