Hamburg, Germany: After remaining bearish in August, the Nitrile Butadiene Rubber prices have shown signs of improvement in Germany. This shift in market sentiment towards Nitrile Butadiene Rubber is gradually becoming more optimistic due to the increase in upstream Butadiene prices and higher energy costs, leading to a rise in Nitrile Butadiene Rubber prices. Additionally, there has been a resurgence in inquiries from the downstream automotive sector, picking up steam following the recent holiday period in Europe.

The ChemAnalyst database has shown that the prices of Nitrile Butadiene Rubber have demonstrated an increment of USD 70 per ton in Germany on the week ending 1st September. The significant increment of approximately 12% in Butadiene prices has been translated into price gains for Nitrile Butadiene Rubber. Regarding demand, market sentiments have been strengthening, adding to the favorable changes seen in the market fundamentals of Nitrile Butadiene Rubber. In addition, According to the data released by the European Automobile Manufacturers' Association (ACEA), in the period spanning from January to July 2023, there was a notable and significant growth of 17.6% in new EU car registrations, reaching a total of 6.3 million units. This growth is a positive sign of recovery for the European automotive industry, including Nitrile Butadiene Rubber, grappling with supply disruptions due to the pandemic. However, it is important to note that year-to-date volumes are still 22% lower than in 2019.

Furthermore, international Crude oil prices are on the upswing, driven by speculations of extended production cuts by OPEC+ nations, pressuring the price realizations of upstream Butdiene Prices to stay buoyant. There is an expectation that Saudi Arabia will continue to decrease its oil production by another 1 million barrels until October, leading to further supply constraints and potential price increases in the oil market, subsequently reflecting in the production costs of several commodities, including Nitrile Butadiene Rubber. On the other hand, The European Central Bank (ECB) will maintain its approach of making decisions on a meeting-by-meeting basis. This implies a possibility of a pause in September, with the potential for rate increases at the October or November meetings if inflation does not subside as quickly as anticipated.

According to the pricing intelligence of ChemAnalyst, Nitrile Butadiene Rubber prices in the German market could potentially gather momentum and sustain elevated levels. This comes amidst a complex macroeconomic landscape in Europe, marked by increasing energy expenses, inflation, and geopolitical conflicts. This confluence of factors is anticipated to impact the European automotive sector, rendering the navigation of its transformation a formidable task.