For the Quarter Ending March 2022
North America
The Nitrile butadiene rubber market has been termed as weak owing to sluggish market fundamentals. Material availability of NBR has been ample due to the influx of imports to US ports from Far East Asia and Europe. Despite resolutely high freight charges, Japan and South have been key exporters of the material importing hefty amounts of NBR on US shores. Shipping costs and freight charges have again been on the rise after stabilizing in late Q4 2021 and early Q1 2022. This has further deterred market sentiment and sent wait and see (conservative) approach among buyers. On-demand side, both Tire and Non-Tire consumption of NBR have slowed down, further deterring buying activities in the regional market. Hence, as of March, NBR prices were assessed at USD 2820 per MT on CFR basis.
Asia Pacific
Feedstock Butadiene prices increased substantially throughout the quarter, where Butadiene prices doubled to USD per MT after the conclusion of the first quarter. However, lacklustre performance of the construction industry denied the increase in butadiene prices to similar increase in Acrylonitrile Butadiene Rubber prices. NBR prices remained primarily stable throughout Q1 on the back of sluggish offtakes from downstream industries. As of March, Acrylonitrile Butadiene Rubber prices were assessed at USD 3740 per MT on FOB basis for NBR of Mooney Viscosity 140. In India, prices of Acrylonitrile Butadiene rubber started the quarter on a weaker note during the first quarter on the back of soft to stable demand from downstream automotive and construction industries. However, prices changed the momentum in the 2nd half of the quarter as the uncertainties regarding global supply chains gained traction and consequently, prices of NBR rose by 3-5% in the Indian domestic market depending on the location.
Europe
Feedstocks Acrylonitrile and Butadiene prices climbed during the first quarter in the global market, and the European market also mirrored the same market sentiment. The rise in feedstock prices increased the inflationary pressure on downstream Nitrile Butadiene Rubber (NBR). Hence prices of NBR gained consistently throughout Q1 2022. On-demand side, the consumption of NBR remained on the healthy side owing to the versatility of NBR and its usage in several key industries, including the transportation and medical industry. Imports from South Korea remained costly due to rising freight charges and increased transit fees. Hence, as of March 2022, Nitrile Butadiene rubber prices were assessed at USD 3460 per MT on FD basis.
For the Quarter Ending December 2021
North America
Asian exports of Nitrile Butadiene rubber remained weak on US shores owing to strong freight charges and long transit time. Domestic production increased in Q4 in comparison to earlier quarters on the back of no unforeseen weather conditions and increased availability of feedstock Butadiene and Acrylonitrile. Market participants struggled for Butadiene during Q3 and consequently, prices crossed USD 2000 per MT however supply of Butadiene increased in Q4 and thus prices declined in the last quarter. On demand side, automotive industry output remained sluggish which deterred Nitrile Butadiene Rubber market sentiment, however limited inventories kept the prices firm during Q4 and therefore, NBR prices in USA were assessed at USD 3490 per MT.
APAC
Festive season in India provided ample opportunity to major automakers and aviation sector to increase their businesses and project significant profit in H1 of the Q4. However, despite of soaring demand, shortage of semiconductor chips curtailed the overall production and reduced the output of automakers. Furthermore, rising raw material cost also remained a major concern for these major manufacturers, as their margins plummeted. Thus, Nitrile Butadiene Rubber (NBR) prices improved consistently throughout the quarter and settled around INR 229300 per MT NBR (HNR 36%-43%) in December. In China, Nitrile Butadiene Rubber prices started the quarter on a strong note on the back of robust demand, however consumption levels stabilized while feedstock costs declined in H2 which resulted in weakened market sentiment in December. Therefore, prices of NBR in China settled at USD 2880 per MT in H2 of Q4.
Europe
European automotive sector remained sluggish throughout the quarter owing to stagnancy in production levels of automotive vehicles. Nitrile Butadiene Rubber has both tire and non-tire applications in automotive and transportation industry and therefore rely heavily on the performance of automotive industry. On supply side, domestic production improved in Q4 owing to comparatively increased availability of feedstocks. However, imports remained hampered due to resolutely high freight charges and shipping costs on Mediterranean routes. Consequently, Nitrile Butadiene Rubbers were declined during the last quarter and were assessed at USD 3560 per MT in December.
For the Quarter Ending September 2021
North America
The prices of Nitrile Butadiene Rubber (NBR) rose effectively in the North American region during the third quarter of 2021 backed by the tight availability and rising cost of upstream Acrylonitrile and Butadiene. The still growth in the automotive sector limited the bearing as other downstream sectors including construction kept the consumption levels strong throughout the third quarter. Offtakes remained firm in Q3 2021 from the automotive sector despite dull production due to the global shortage of semiconductor chipsets.
Asia pacific
The demand outlook demonstrated an upward trajectory in the Asia Pacific region in Q3 2021. In India, the market sentiments of NBR experienced a marginal improvement buoyed by gradual improvement in demand from downstream segments following ease in lockdown restrictions. Apcotex Industry, a key manufacturer of NBR in India announced an 11-day maintenance outage at its Valia, Gujarat facility w.e.f. 2nd July. EXW-NBR (HNR 36%-43%) price in India was assessed at USD 3643 per metric tonne in September. Traders revealed that in the last two weeks of July, buyers sought for more material due to pick-up in industrial activities.
Europe
The market outlook of Nitrile Butadiene Rubber (NBR) strengthened in the European region during the 3rd quarter of 2021. Prices of NBR remained firm in the month of September due to improved supply across the region. Maintenance drives and unplanned outages ended in the third quarter which improved the availability of upstream in Europe. The demand stood affected from the automotive industry due to supply bottlenecks and shortages of semiconductors across the globe.
For the Quarter Ending June 2021
North America
During Q2 2021, Nitrile Butadiene Rubber (NBR) supplies in the North American region significantly improved compared to the previous quarter owing to the surged production rates in the rubber manufacturing facilities as producers ramped up run rates to cope with the spike in industrial demand. However, several Butadiene producers in the US Gulf region struggled to operate at normal efficiency sending sharp gains to the NBR price curve in May-June period. NBR latex demand was bolstered from the Nitrile glove manufacturers while offtakes from the tire industries surged to cope up with the rise in demand from the automotive sector. Despite dull production of automobile due to the severe shortages of semiconductor chipsets, spot buyers observed procuring large orders ahead of the upcoming Hurricane season. As a ripple effect NBR pricing trend in the North American region stabilized after witnessing tremendous growth since the start of 2021. FOB Ohio discussions were assessed at USD 3070 per tonne in June.
Asia pacific
During the second quarter, the supplies of Nitrile Butadiene Rubber (NBR) remained overall balanced as production rates at manufacturing plants were ample to meet the surging end use demand. Some constraints were witnessed in China amid the May Day holidays. Feedstock Butadiene prices surged amidst rising inflation rate in the Chinese domestic market. Demand was consistent from the downstream medical gloves and tire industries, backed by strong overseas enquiries from the North American region. Hampered by the impact of COVID-related restrictions in India, NBR offtakes were affected proportionally during Q2, and Ex-Works Mumbai NBR offers slipped to USD 3430 per tonne in June.
Europe
The European Nitrile Butadiene Rubber (NBR) market was stable owing to the better operating rates at several manufacturing facilities however export of volumes to the US put significant pressure in the regional market supply. Demand surged as most US buyers preferred the European shipments over Northeast Asian cargoes due to lower freight charges and high import duties by the US government on the Chinese origin materials. NBR offtakes surged from the downstream tire industries to meet growing demand from the recovering automotive sector. NBR priced in the European market remained firm buoyed by the limited feedstock availability and high demand.
For the Quarter Ending March 2021
North America
The supplies in the US were snug during the first quarter of 2021, owning to the impacts from the unprecedented freeze fallout in Texas and nearby gulf region in the US. Furthermore, it is anticipated that market remained stressed till next quarter. Feedstock Butadiene availability was limited with TPC Houston and Shell Deer Park not restarted till the final week of March, which represented nearly 30% of the US BD capacity. Feedstock unavailability prompted several NBR producers in the US to operate at curtailed rates and raise their monthly offers in March.
Asia-Pacific (APAC)
The supplies of NBR in the Asia Pacific region remained balanced during Q1 2021, as an outcome of unplanned shutdowns of major plants in China amid Chinese Lunar New Year, however contemplated by the addition of new facilities in China. With the overall construction and automotive sector restoring with economic upturn, backed by higher crude oil price stimulated the Chinese NBR market to register sharp rises. While the prices could not trace back to pre-pandemic levels, Ex-Works Nanjing prices of Nitrile Butadiene Rubber in China were assessed around USD 2300/ton in February.
Europe
During the first quarter of 2021, the supplies of Nitrile Butadiene Rubber remained constrained as major economies in the region such as Germany, France etc. declared lockdown due to re-emergence of another wave of infections, followed by reduced imports of the feedstock supplies from the US. The demand slightly improved as the automotive sector slowly recovered and sales improved from the previous quarter.
For the Quarter Ending September 2020
Asia
Price of NBR surged across the region because of the soaring feedstock Butadiene and also due to improved demand from the agricultural sector. By the end of September, prices were on a continuous uptrend and were assessed around USD 2200 per MT CFR India. With the initiation of antidumping investigation on NBR import from China, EU, Japan and Russia, Indian NBR producers turned optimistic over curtailed cheap imports. Higher feedstock prices and stable market demand lead to higher price realizations even in China although demand from the automotive sector stood in the doldrums.
Europe
The third quarter Nitrile Butadiene Rubber prices remained high due to tight supply with better buying appetite from domestic as well as Asian buyers. Further increase was seen in the contract prices because of the increased upstream values. Maintenance shutdowns, unplanned issues kept the NBR supply snug throughout the quarter. Revived demand from Asia was starting to again support trader sentiments. Closure of Lanxess AG’s NBR unit in Q2, supported the high pricing of the product during the third quarter.
