Stability Prevails: Isoprene Rubber Prices Hold Firm Worldwide
Stability Prevails: Isoprene Rubber Prices Hold Firm Worldwide

Stability Prevails: Isoprene Rubber Prices Hold Firm Worldwide

  • 02-Apr-2024 5:12 PM
  • Journalist: Sasha Fernandes

Novosibirsk, Russia: In the global market, the prices of Isoprene Rubber MV (60-80) are maintaining their stability in their trend due to the sustained supply and demand equilibrium. Furthermore, the prices of the upstream Crude Oil market are also experiencing stability in their trend, contributing to the stable production cost of Isoprene Rubber MV (60-80) by maintaining the stable energy cost.

In the Russian market, the trend of Isoprene Rubber MV (60-80) is the same as the previous week and settled at USD 1390/MT (FOB-Novosibirsk) on 29th March 2024. Despite the ongoing Farmer’s Protests in European countries including Russia, the prices of Isoprene Rubber MV (60-80) are the same as the previous week due to the moderate demand from the downstream Automotive and Tire sectors which are getting fulfilled by the existing inventory levels in the storage units. Additionally, the European Commission is considering imposing tariffs on grain imports from Russia and Belarus as a measure to prevent market distortion within the EU and to address concerns raised by farmers protesting against cheap imports. This move is also aimed at restricting Russia's capacity to finance its conflict in Ukraine and to curb the trade of grain allegedly stolen from Ukraine. Russia has cautioned that if these tariffs are implemented, European consumers will bear the brunt of the consequences, labeling the proposal as an instance of "unfair competition."

Russia stands as one of the world's leading grain producers, however, before Russia invaded Ukraine in February 2022, the EU held a significant position as one of Russia's primary trading partners. Ukraine, another major player in the global grain market, has accused Russia of pilfering thousands of tons of grain from territories it occupies within Ukraine and subsequently exporting it worldwide. In solidarity with Ukraine, the EU has implemented multiple rounds of sanctions against Russia. These sanctions have targeted various sectors including energy, banking, and even the world's largest diamond mining company. Additionally, Russian officials have been subjected to asset freezes and travel bans by the EU.

At the same time, the Isoprene Rubber MV (60-80) prices in the US market are also witnessing stability in their trend due to the moderate demand from the domestic as well as the overseas downstream Automotive and Tire sectors and an adequate amount of existing inventory levels. Therefore, the production rate, as well as the trading activities for Isoprene Rubber MV (60-80) among the significant manufacturing units, were maintained at the same pace as the previous week so that the supply and demand equilibrium could be maintained. Market participants refrained from adjusting their quotations for Isoprene Rubber MV (60-80), demonstrating a cautious approach aimed at preserving the delicate balance between supply and demand. Similarly, buyers opted for on-demand procurement strategies of Isoprene Rubber MV (60-80)  rather than bulk purchases to mitigate the risk of inventory oversupply. This prudent decision-making by both sellers and buyers played a pivotal role in maintaining equilibrium within the Isoprene Rubber MV (60-80) market, ensuring that supply levels remained in sync with actual demand requirements.

Similarly, in the Japanese market, the stability in the prices of Isoprene Rubber MV (60-80) is recorded to showcase continuation with the previous week. Due to the stable prices of the energy cost, and the production cost of Isoprene Rubber MV (60-80) because of the steady prices of the upstream Crude Oil market. Also, the moderate demand for Isoprene Rubber MV (60-80) from both domestic and overseas downstream automotive and tire sectors, coupled with sufficient existing inventory levels, is influencing the current market conditions. At the Bank of Japan's March meeting, a summary of opinions revealed that many policymakers felt it necessary to proceed cautiously in withdrawing ultra-loose monetary policies. During the decision-making process to terminate negative interest rates last week, there was a division among board members regarding the economy's resilience to withstand the transition.

According to ChemAnalyst, Isoprene Rubber MV (60-80)  prices are expected to rise due to anticipated high demand from downstream automotive enterprises and increased consumption rates of existing inventory levels. Consequently, market players are likely to raise their quotations of Isoprene Rubber MV (60-80) to boost their profit margins. Additionally, the prices of Crude Oil may show an upward trend, leading to higher production costs of Isoprene Rubber MV (60-80) and further increasing the commodity prices.

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