The European Nitrile Butadiene Rubber (NBR) market is experiencing an upward price trend in early February, particularly in Germany, with NBR 18%-40% CFR Hamburg prices rising by 0.4%. This increase reflected a complex interplay of factors, including volatile feedstock costs, supply-demand dynamics, and the performance of the crucial automotive sector, a major consumer of NBR in seals, gaskets, and hoses. The price trend in key exporting nations like South Korea and Japan also influenced the NBR prices in importing regions such as Europe, particularly Germany.

The primary raw materials for NBR, butadiene, and acrylonitrile, experienced significant price volatility. Butadiene prices initially rose due to macroeconomic factors, increased crude oil prices, and positive market sentiment driven by synthetic rubber futures. However, rapid price increases caused downstream production cuts and a temporary drop in prices as imported goods arrived at ports. Subsequently, prices rebounded due to renewed increases in crude oil and synthetic rubber prices, low port inventories, and pre-holiday demand. Acrylonitrile also saw price fluctuations; while its feedstock initially increased, subsequent declines were offset by supply instability and shortages, maintaining upward pressure on prices. These volatile raw material costs directly impacted NBR producers, keeping spot prices high.

The high prices of both butadiene and acrylonitrile continued to exert cost pressure on NBR producers, keeping spot prices elevated. On the supply side, domestic NBR plants, including those operated by Lanzhou Petrochemical, Alangtai Rubber, Jinpu Insa, Ningbo Shunze, and Zhenjiang Nandi, were operating normally with optimum-capacity utilization. While mainstream suppliers anticipate growth, logistics and transportation challenges persist, resulting in limited spot stocks of certain brands in the market and an incomplete filling of previous supply gaps. However, downstream companies are nearing the end of their pre-holiday stock replenishment, leading to slowing down activity and trading volumes.

NBR majorly finds its usage in the automotive sector in the production of Seals and gaskets, hoses. The automotive sector, a key end-user of NBR, has been facing its own challenges. While car production in Germany increased to 340,800 units in January 2025 from 225,155 units in December 2024, the German economy remained in recession, with the automotive industry significantly contributing to the downturn. Major automakers like Volkswagen (VW) are planning to cut thousands of jobs in Germany, and mass layoffs are expected at other German automakers and their suppliers.

ChemAnalyst forecasts significant upward pressure on NBR prices in the near future. This prediction stems from a combination of factors: fluctuating raw material costs, ongoing supply chain disruptions, and weak automotive sector performance. These challenges are expected to persist until market demand strengthens.