For the Quarter Ending March 2025
North America
In Q1 2025, the Nitrile Butadiene Rubber (NBR) price trend in North America, particularly the USA, reflected significant market dynamics impacting the automotive sector and overall economic conditions. January began with prices steady. Domestic plants operated normally, but low stockpiling reflected cautious market sentiment.
By February, a bullish sentiment emerged, pushing prices upward due to ongoing supply constraints and rising input costs. The automotive sector showed signs of recovery, with vehicle sales increasing, leading to higher demand for NBR, which is critical for manufacturing seals and gaskets. However, heightened prices faced buyer resistance, limiting further growth .
In March, NBR prices declined, primarily due to persistent oversupply and a cautious approach from buyers focusing on immediate needs rather than long-term commitments. Manufacturing faced challenges with synthetic rubber plants operating below capacity, contributing to a price war among suppliers.
Overall, Q1 2025 demonstrated an initial steady period followed by fluctuations influenced by market uncertainties, recovering vehicle sales, and changing economic conditions, culminating in a mild downward trend by the quarter's end.
APAC
In Q1 2025, the price trend for Nitrile Butadiene Rubber (NBR) in the APAC region reflected significant volatility. In January, NBR market saw weak demand amid rising butadiene costs which hampered purchases. Economic slowdowns in major markets, particularly South Korea, led to diminished manufacturing demand and a cautious outlook for the upcoming year.
February saw a slight upward movement in prices. This increase was fueled by supply-demand dynamics and a recovering automotive sector, despite the overall sluggish nature of market activity. The domestic production levels were satisfactory, yet limited due to logistics challenges and high feedstock costs, resulting in a restrained trading environment.
Entering March, however, the market experienced a downturn, with prices declining amid oversupply issues. Sellers struggled to offload inventories, resulting in lower monthly quotations. Although automotive sales showed recovery, this improvement did not translate into sustained upward momentum in prices due to broader economic headwinds affecting demand. Overall, Q1 2025 showcased the NBR market's complexity, with initial stability transitioning into cautious optimism followed by renewed challenges.
Europe
In Q1 2025, the price trend for Nitrile Butadiene Rubber (NBR) in the European market exhibited notable fluctuations, primarily influenced by demand dynamics in the automotive sector and external economic pressures. In January, NBR market faced sluggish demand amid rising butadiene costs, hindering replenishment by downstream customers.
February saw a slight upward movement, with prices rising significantly, thus reflecting robust capacity utilization in domestic plants and ongoing challenges in the automotive industry. Increased car production provided some relief, but the general economic recession continued to impact demand negatively, limiting overall trading volumes.
By March, the NBR market experienced a downturn, declining due to excess inventories and reduced consumption linked to declining automotive sales across key markets. The bearish sentiment was exacerbated by trade uncertainties and inventory build-up, leading traders to lower prices strategically.
Overall, Q1 displayed a trend of initial price stability followed by minor gains in February, culminating in a price decrease by the quarter's end, underlining a cautious market attitude amid prevailing economic challenges and sector-specific weaknesses.
For the Quarter Ending December 2024
North America
In Q4 2024, the NBR market in the North American region, particularly the USA, saw significant price volatility. The quarter began with a surge in NBR prices due to strong demand from the automotive sector, fueled by robust sales and limited production capacity. This occurred despite lower crude oil and butadiene costs, highlighting the strength of the demand-side pressure. Rising acrylonitrile (ACN) prices in key importing countries further supported price increases.
However, as the year progressed into November and December, the market shifted. A seasonal slowdown, coupled with reduced procurement and destocking activities, led to oversupply and a decrease in prices. Several manufacturers even scheduled plant shutdowns to manage excess inventory. While some price recovery occurred in late December due to inventory depletion, the overall trend reflected a significant price swing.
The automotive sector’s performance played a crucial role, initially boosting demand and prices. Fluctuations in ACN and butadiene costs also contributed to the volatility. Seasonal factors and destocking activities further shaped the market dynamics.
Market participants faced a volatile pricing environment, impacting both producers and buyers. Producers struggled with capacity constraints and pricing uncertainty. Buyers experienced fluctuating costs, making it challenging to manage budgets and project pricing. The quarter ended with NBR 41%-66% priced at USD 3230/MT CFR Los Angeles.
APAC
The APAC NBR market, particularly in South Korea, experienced price volatility in Q4 2024, driven by fluctuating demand and supply dynamics.
October saw a price increase despite lower crude oil and butadiene costs, primarily due to strong automotive demand in South Korea, limited production capacity, and rising acrylonitrile (ACN) prices. This positive trend reversed in November, with prices declining due to a seasonal slowdown, weaker consumer confidence, decreased automotive sales, and a bearish butadiene market. December saw prices stabilize, with normal plant operations but limited demand and rising butadiene costs resulting in moderate trading and tight supply for some brands. The overall market reflected a cautious outlook for the coming year.
The automotive sector's performance significantly influenced NBR prices, with strong sales in October and weaker sales in November affecting demand. Fluctuations in ACN and butadiene costs, seasonal factors, and inventory levels all played a role in shaping market dynamics.
Market participants faced uncertainty due to fluctuating demand and prices. Producers navigated capacity constraints and volatile costs. Buyers dealt with unpredictable pricing, impacting budgeting and planning. The interplay between global and regional factors added complexity. The quarter ended with NBR 33%-38% FOB Busan priced at USD 2120/MT FOB Busan.
Europe
The European NBR market, particularly in Germany, experienced fluctuating prices in Q4 2024, driven by competing forces of supply and demand, mirroring global trends.
The quarter began with a price increase in October, despite lower crude oil and butadiene costs. This was fueled by strong automotive demand in Germany, limited production capacity, and rising acrylonitrile (ACN) prices in key exporting countries like South Korea and Japan. However, this bullish trend reversed in November as the automotive sector's growth slowed, and a seasonal slowdown led to higher inventories and reduced trading activity. This resulted in lower prices despite rising ACN costs. December saw prices stabilize, impacted by ongoing sluggish demand, normal plant operations, and rising butadiene costs, leading to moderate trading.
The automotive sector’s performance played a crucial role, with initial strong demand driving October's price increase and subsequent slowdown contributing to the November decline. Fluctuations in ACN and butadiene costs also significantly influenced prices, while seasonal factors affected inventory levels and trading activity.
Market participants faced significant uncertainty. Producers dealt with fluctuating demand and pricing, while buyers struggled with volatile costs and inventory management. The interplay of global and regional factors, particularly the impact of Asian markets on supply and pricing, added to the challenges. The quarter concluded with NBR 18%-40% priced at USD 2470/MT CFR Hamburg.
For the Quarter Ending September 2024
North America
In Q3 2024, the Nitrile Butadiene Rubber (NBR) market in North America experienced a downward trend in pricing, with the USA being the most affected. This quarter has been challenging for NBR due to various factors influencing market prices.
The primary cause of this decline was found to be poor domestic demand along with cautious market behaviour. At the same time, supply fundamentals have remained stable over the last few weeks, with constant supplies. Not only do suppliers have a sufficient supply of the goods, but so do buyers, resulting in downward pressure on NBR pricing. Additionally, the decline in crude oil prices and uncertainties surrounding global economic conditions have contributed to the negative price trend.
The 4% change from the previous quarter in 2024 indicated a continuation of the price decline. The comparison between the first and second half of the quarter showed a -2% change which further emphasized the consistent decrease in NBR prices. The latest quarter-ending price of USD 3170/MT for NBR 41%-66% CFR Los Angeles in the USA showcased the prevailing negative sentiment in the pricing environment.
APAC
In Q3 2024, the Nitrile Butadiene Rubber (NBR) market in the Asia-Pacific region witnessed a significant decline in prices. This quarter was characterized by a multitude of factors influencing market dynamics. The domestic market for NBR appeared to be sluggish implying that customers were not actively looking to buy the commodity. The lack of demand put downward pressure on pricing. Despite the drop in demand, the supply of NBR remained stable. The commodity excess contributed to reduced prices since sellers were eager to provide discounts to draw in buyers. Market participants took a cautious approach, most likely owing to uncertainties about future economic conditions or price swings. The hesitation has resulted in decreased demand for NBR. Reduced demand from various downstream construction and automotive sectors, cautious market behavior, and a surplus of NBR supply were the primary drivers behind the price decrease. However, Japan stood out with the most significant price changes in the region. The overall trend in Japan reflected a consistent decrease in NBR prices, aligning with the regional sentiment. There was a slight improvement from the previous quarter in 2024, with a 7% increase. Interestingly, comparing the first and second half of the quarter, there was a minimal decrease of 2% in prices. The quarter-ending price for NBR 36%-43% FOB Osaka in Japan settled at USD 2165/MT, underlining the prevailing negative pricing environment in the region.
Europe
In Q3 2024, the Nitrile Butadiene Rubber (NBR) pricing landscape in Europe witnessed a downward trend. This decline was primarily influenced by factors such as subdued demand from downstream industries, including the automotive and construction sectors, coupled with limited procurement activities. The market conditions were characterized by a mismatch between supply and demand. While suppliers have ample inventory, weak domestic demand and cautious market sentiment have limited the consumption of available products. This imbalance has created downward pressure on prices, indicating a challenging environment for NBR producers and buyers alike. The market sentiment was further dampened by ongoing inflationary pressures, which constrained consumer spending and overall demand for NBR. In France, the region experiencing the most significant price changes, NBR prices saw a 3% decrease from the previous quarter in 2024. The correlation in price changes indicated a slight decline of 1% between the first and second half of the quarter. Overall, the pricing environment in France reflected a negative sentiment, with prices ending the quarter at USD 2390/MT of NBR 18%- 40% FOB Marseille. This consistent downward trajectory underscored the challenging market conditions and the impact of macroeconomic factors on NBR pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Nitrile Butadiene Rubber (NBR) has experienced an uptick in prices. This escalation has been influenced by several key factors, including heightened geopolitical tensions, increased crude oil prices, and elevated freight rates. Elevated crude oil prices have resulted in higher manufacturing costs, thereby pushing NBR prices upwards.
Geopolitical disturbances, specifically in Eastern Europe and the Middle East, have further exacerbated supply chain disruptions, leading to increased shipping costs and longer transit times. Additionally, spot ocean freight rates from the Far East to North America surged, adding further pressure on the market.
Focusing on the USA, which saw the most significant price changes, the market exhibited bullish sentiment throughout the quarter. Seasonal demand from the automotive and construction sectors contributed to the rising prices, despite moderate supply levels. The quarter concluded with NBR 41%-66% CFR Los Angeles prices at USD 3200 per metric ton. Overall, the pricing environment for NBR in North America, particularly in the USA, has been positive, driven by strong market fundamentals and external economic pressures.
APAC
In Q2 2024, the Nitrile Butadiene Rubber (NBR) market in the APAC region has experienced considerable volatility, marked by a pronounced uptrend in prices. This quarter has seen a significant increase in NBR prices driven by multiple factors. Key among these is the rising cost of upstream Butadiene, exacerbated by geopolitical tensions in Eastern Europe and the Middle East, leading to higher international crude oil prices. Additionally, increased freight rates due to port congestion and vessel shortages have further compounded the price hikes. The automotive sector's steady demand, despite economic uncertainties in major markets such as China and the cautious stance of the US Federal Reserve on interest rate cuts, has also provided strong market support. Focusing on Japan, where the most substantial price changes were observed, the NBR market dynamics have been notably bullish. Seasonality played a role as summer months typically increase fuel demand, contributing to higher crude oil prices. The correlation between rising raw material costs and manufacturing expenses has been direct, reflecting in the NBR price surge. The latest quarter-ending price for Japan is USD 2175/MT for NBR 36%-43% FOB Osaka. Overall, the pricing environment for NBR in the APAC region during Q2 2024 has been predominantly positive, characterized by supply chain challenges, and escalating raw material costs. This confluence of factors underscores the market's upward price momentum, albeit within a volatile economic landscape.
Europe
In Q2 2024, the Nitrile Butadiene Rubber (NBR) market in Europe exhibited a dynamic pricing landscape, driven by a combination of demand fluctuations, supply chain constraints, and macroeconomic factors. This quarter has seen a notable stabilization in NBR prices, influenced significantly by moderate demand from downstream industries such as automotive and construction. The availability of finished goods was sufficient to meet market needs, although operating rates at manufacturing firms haven't returned to pre-downturn levels. Additionally, persistent inflation in services and fluctuations in crude oil prices contributed to the nuanced pricing environment. The European Central Bank's measures to address inflation, alongside geopolitical factors impacting shipping routes and costs, also played a crucial role in shaping market dynamics. In Germany, the NBR market saw the most significant price changes, reflecting broader economic trends. The overall trend in Germany was one of gradual price increases, with seasonal factors and supply chain adjustments exerting pressure on prices. The quarter-ending price for NBR 18%-40% CFR Hamburg in Germany stood at USD 2490/MT, reflecting a positive sentiment in the pricing environment. This increase is indicative of a cautiously optimistic market outlook, driven by improving demand and strategic supply management.
