Trade Unions Strikes in France Put SBR Prices in Turmoil

France- European countries have witnessed continuous protests by different unions regarding inflations, energy prices, and bill implementation (increasing the retirement age). These opposition and actions taken by the commoners have severely impacted the industrial operational rates, accompanied by the modest demand outlook for Styrene Butadiene Rubber (SBR) from downstream (automotive) sectors. As a ripple effect, the prices of SBR dropped and reached USD 2100 per MT, LE Havre (France).

SBR production includes the copolymerization of Styrene and Butadiene, and any variations in prices of these commodities directly impact the SBR prices. TotalEnergies is one of the major refineries in the French market and has reduced the operational unit leading. The impact of these facets was easily seen on petroleum and gasoline and its derivatives, and a decline in demand outlook was observed.

The waves of the strike have also impacted the supply chain in the country as the containers are piled at the domestic ports. Workers are on strike and are neglecting to negotiate with the government. The demand outlook for SBR from domestic and international markets remained moderate; however, a slight incline in sales of cars was observed in the French market in the previous month. The strike has many implications for operations and is projected to create severe delays in both ocean and inland cargo movement across France.

As per ChemAnalyst, the SBR prices are further anticipated to incline slightly in the domestic market towards the end of the first quarter of 2023 because of delayed transport of the product and a tight supply chain. Raw material (Benzene) prices may incline in the market as the refineries are inactive as compared with better demand strength. Inclined energy prices may impact the production cost of SBR. Market participants predict a promising future for automobile sectors as the demand and production of electronic vehicles are rising in the domestic market.