US Nitrile Butadiene Rubber Price Start June 2022 On A Strong Note
- 10-Jun-2022 12:23 PM
- Journalist: Rene Swann
Nitrile Butadiene rubber prices have observed another significant spike in the latest assessment done by ChemAnalyst. Global supply disruptions in the wake of ongoing shipping woes have been the critical factor determining the final pricing of the material. Meanwhile, the demand for Nitrile Butadiene rubber has been on the rise with the resurgence in automotive and construction industry.
As of the week ending 10th June 2022, Nitrile Butadiene Rubber (NBR) prices were assessed at USD 3995 per MT on CFR basis. Since the beginning of the second quarter, NBR prices have gained more than 14% considering ongoing upheaval in the global petrochemical and shipping industry.
The US imports Nitrile Butadiene Rubber from Asia, mainly South Korea, Japan, and other Asian nations. During Q2 2022, supply chains have worsened as the ongoing war in Ukraine has hampered trading in Europe, while China's lockdowns have crippled the Asian supply chains. Lockdowns in Shanghai have deteriorated logistics, port activities, and normal shipping in a significant part of the world as China forms the heart of trading for the world. China is home to several world's largest ports, including Shanghai, Qingdao, and Ningbo.
Feedstock markets in Asia have been tight since the beginning of the Ukrainian crisis due to constrained energy markets. Inflation rates have been crawling higher and higher, reaching multi-year high, threatening the world with the inauspicious global recession. Central banks have been scrambling to counter the growing danger of recession and contain inflation rates. Butadiene prices have eased in the Asian region but still maintain a strong presence in the Asian market; meanwhile, Acrylonitrile has been on the higher side owing to the strong pricing of feedstock Propylene in Asia. Hence, the cost of production has been firm to increasing, pressuring prices of Nitrile Butadiene Rubber as manufacturers look to secure the margins. The increasing production cost and global supply woes have culminated in the rising prices of imported material on US shores.
Demand dynamics have been healthy as the automotive and allied industries along with construction industry have gained traction after the initial slump in Q2.
As per ChemAnalyst, "China has been lifting the restrictions in its major cities easing the supply of material and bringing the shipping industry to some normalcy which will benefit the global supply chains."