Contrasting Trends: Polybutadiene Rubber Prices Soar in the US while Plummeting in China
- 30-May-2023 3:09 PM
- Journalist: Shiba Teramoto
Texas, USA: While the costs for Polybutadiene Rubber plunged in the Chinese market, they have experienced a significant rise in the US market. Specifically, the prices of Polybutadiene Rubber in the US market surged by a significant 1.4% for the week ending May 26, whereas they dropped by 1.1% in the Chinese market. According to industry analysts, the Chinese industry is more influenced by the upstream side, but recent observations indicate that demand has been the driving force behind the Polybutadiene Rubber market in the US.
In the Chinese market, the prices of feedstock Butadiene has been decreasing consistently for several weeks, and a drop of almost 5% was observed during the week ending on May 26. This decline in feedstock Butadiene prices caused Polybutadiene Rubber's upstream to plummet, eventually leading to its slumping market value. Hence, despite recent signs of a recovery in downstream demand from tire and automotive industries, Polybutadiene Rubber prices are declining in China as the supply side is more dominant and an abundance of inventories has fulfilled the available demand.
However, a notable and rapid change has recently been observed in the US car industry, influencing the demand for Polybutadiene Rubber. Wholesale sales have increased, accompanied by a rise in the industry's Seasonally Adjusted Annual Rate (SAAR). This has led to a week-long surge in demand for Polybutadiene Rubber, thereby supporting the increase in its market value. The automotive industry has been doing good, with April light vehicle sales rising 7.2% to a 15.9 million annualized pace, up 11.4% from last year's month due to easing supply bottlenecks.
ChemAnalyst predicts that as June begins, the price of Polybutadiene Rubber in the US will continue to rise along with high demand from the automotive and tire industry, but its prices might slump even more in China on the back of the dropping market value of feedstock Butadiene.