For the Quarter Ending December 2022
North America
The US market has witnessed mixed sentiments for Nitrile Butadiene Rubber in Q4 2022. The production rate of manufacturing units was regular, and the inventories were adequate to cater to the demand from end-use industries. However, the rubber industry's downturn in offtakes decelerated NBR's market growth in December. In addition, the ease in the supply chain and softened inflation have a cumulative effect on the reduced value of Nitrile Butadiene Rubber. The market transactions were insufficient the supply of goods has continued to be abundant. Therefore, NBR 41%-66% CFR Los Angeles was assessed at USD 3950 per ton at the end of the fourth quarter.
APAC
The prices of Nitrile Butadiene Rubber have consistently dropped throughout the fourth quarter of 2022. In October, the procurement from the downstream rubber industries was insufficient and led to an accumulation of inventories among the manufacturers. As a result, the pressure on the supply side has increased, lowering NBR quotations for end-use industries. Furthermore, The sluggish factory activities, driven by weak domestic and foreign demand as COVID-19 spread in China in the mid-Q4, pressured the market sentiments of NBR. On the upstream cost front, Butadiene values have fallen, and the cost support on the NBR weakened in the domestic Chinese market. The ChemAnalyst database has shown that NBR 36%-43% Ex-Shanghai prices were settled at USD 2055 per ton in Q4-end.
Europe
In the fourth quarter of 2022, the price realization of Nitrile Butadiene Rubber has demonstrated a downward trajectory. High inflation has weighed on the downstream demand, and the production of goods has been weakened as there was sufficient product availability. The market participants have reported that the inflows of new inquiries from the downstream rubber industries remained bearish throughout Q4. However, the all-time high inflation has started to ease from mid-November to support the contracted German economy. During the quarter, IFP reported Germany might escape the grave threat of recession. Furthermore, upstream raw materials costs have plummeted, dragging down NBR's market growth. Consequently, in December, NBR 18%-40% CFR Hamburg prices settled at USD 3691 per ton.
For the Quarter Ending September 2022
North America
At the start of the third quarter of 2022, Nitrile Butadiene Rubber (NBR) prices demonstrated an increasing trajectory. As a repercussion of rising inflation in the country, tightened monetary policy and improved interest rates have been imposed by the US Federal Reserve to curb inflation. In mid-Q3, the market players reduced their quotations as the buyers were inclined to a cheaper spot market. As per the Institute of Supply Management (ISM), on the inflation front, the price index tumbled to 52.5 in August, dropping below 60 for the first time since August 2020. Furthermore, towards the end of the third quarter, the NBR prices escalated in the domestic region of the USA. On the demand side, active inquiries from the downstream automotive sector have fueled NBR's market growth among the manufacturers. Consequently, NBR 41%-66% CFR Los Angeles prices were assembled at USD 4085 per ton at quarter-end.
APAC
In the Asia-Pacific region, the price dynamics of Nitrile Butadiene Rubber (NBR) have remained volatile. The plummeting crude oil values have prompted negative pressure on the manufacturing costs of NBR in the key exporting country, South Korea. The imports from the regional markets have remained general amid global economic challenges. In the mid of September 2022, A key market player, Kumho Petrochemical, announced a significant investment initiative (approx. €5.5 billion) to boost NBR production in the domestic region. Furthermore, the positive development in the automotive sector has accelerated the demand dynamics of NBR toward the end of the third quarter. Consequently, NBR 41%-66% FOB Busan prices were settled at USD 2520 on September 30.
Europe
The price trend of NBR has fluctuated in the domestic market of Germany. The NBR prices first declined and then improved with surging natural gas costs. The market players have reported that the downturn in business activities of the downstream automotive sector has deepened as higher energy costs hit Europe, and a drop has been observed in new orders. However, in the middle of the third quarter, the cumulative sales rates increased owing to an upward shift in demand from the downstream automotive sector in the domestic region. Furthermore, the European central bank has raised its key interest rates by 75 basis points to combat the rising inflation in the country. On the upstream cost front, escalating values of Butadiene have pressured the market sentiments of NBR among the manufacturers. Therefore, German NBR 18%-40% CFR Hamburg prices were settled at USD 4125 per ton in September 2022.
Unlike the APAC market, the North American NBR markets witnessed constant growth. When it comes to USA, the prices were increasing continuously due to the progression in feedstock prices. Adding to this is the increase in global freight costs and limited domestic production. Despite these, there was a growing demand for this product from downstream firms. Canada had seen increase in prices due to enhanced feedstock and import costs. Yet, like the US, downstream firms showed stable demand for NBR. In Mexico, the prices were increasing in this quarter, owing to growing feedstocks costs.
The market of Nitrile Butadiene Rubber (NBR) was different in various parts of the Asia – Pacific Region in the second quarter. As far as China is concerned, the prices were impacted and continued to drop down due to lockdowns imposed in various provinces in the month of April, followed by lower demand for this product from downstream industries. South Korea too followed an identical trend with prices. However, the Malaysian and Indian markets were in contrary to these countries. NBR market remained stable in India because of constant demand for this product and in Malaysia, the prices were increasing, owing to growth in feedstock prices and enhanced demand from domestic firms for several production purposes. Australian NBR markets too aligned with the Malaysian markets in this quarter.
In contrary to North American and Asia – Pacific markets, the European markets witnessed growth till May and saw a downfall in the Month of June. In France, NBR prices increased till May, because of lowered imports from China due to lockdowns imposed in it’s different regions, followed by increasing feedstocks costs. Another factor attributed to growth in costs is the constant demand for this product for downstream processing from various companies. The weakening of Euro against US dollar has also paved way for the prices to grow. Germany and United Kingdom too had witnessed increased prices of this product due to reduced imports and progressive orders for NBR for numerous production purposes.