Nitrile Butadiene Rubber Pricing Dynamics Remain Buoyant Towards the End of Q3 2022
- 30-Sep-2022 12:21 PM
- Journalist: Peter Schmidt
The ChemAnalyst database shows that the Nitrile Butadiene Rubber (NBR) prices have been on a bullish run across the global market since the start of September 2022. The rebound in the Automotive sector despite of global economic slowdown has strengthened the market dynamics of NBR in the regional markets. However, the cost support from upstream Butadiene remained general, and the NBR values spiraled upward in a narrow range across the nations.
In Germany, the prices of NBR have retained their upward momentum and demonstrated a slight increase of 0.6% from last week's observed costs. The market players have reported that the downturn in business activities of the downstream automotive sector has deepened as higher energy costs hit Europe's largest economy, and a drop has been observed in new orders. Furthermore, the European Central Bank has raised its key interest rates by 75 base points to combat the rising inflation in the country. On the supply side, there is adequate availability of the product to cater to the demand from the terminal market. In addition, the Nord Stream pipelines, which carry natural gas between Russia and Germany, have been leaking, pressuring the supply for the manufacturing enterprises.
In South Korea, the price trends of Nitrile Butadiene Rubber have demonstrated an inclination of approximately 3.6% on September 29th compared to last week's observed costs. The increased demand from domestic automotive industries has led to an increase in manufacturer quotations. However, market players have reported that exports have been drastically reduced amid weakening global demand as many countries raise borrowing costs to fight a surge in inflation. In the same timeframe, the price trends of NBR have escalated by 1.6% in the USA, backed by improved demand fundamentals.
According to ChemAnalyst, exports from a key manufacturing country, South Korea, will remain under pressure owing to global economic constraints. In other Asian countries, demand is expected to rebound, narrowing the trade balance. However, the European and US markets will likely demonstrate mixed market growth amid volatile energy prices and inflationary pressure in the forthcoming weeks.