Nitrile Butadiene Rubber Prices Show Divergent Patterns in Asia and Europe at the End of Q3 2023

France: In the domestic market of France, the prices of Nitrile Butadiene Rubber have demonstrated an upward trend amid the rise in upstream Buatdiene costs. The persistent inflationary pressures in the European market and rising Crude Oil prices have exacerbated the Nitrile Buatdiene Rubber market concerns. The European Central Bank (ECB) has recently increased its key interest rate to 4.50 percent, marking the 10th consecutive rate hike in its most aggressive tightening cycle ever, which began in July last year due to price surges triggered by Russia's invasion of Ukraine.

The ChemAnalyst database has shown that the prices of Nitrile Butadiene Rubber have demonstrated a net inclination of approximately USD 130 per ton at the end of the third quarter of 2023. The holiday season in the recent mid-Q3 has weighed upon the production activities of manufacturing firms across the nation, leading to relatively low availability of the Nitrile Butadiene Rubber to cater to the downstream demand. The market players have reported that inquiries from the downstream Automtobe sector have been gradually stabilizing, reinforcing the market fundamentals of Nitrile Butadiene Rubber among the manufacturers.

On the other hand, the prices of Nitrile Butadiene Rubber have demonstrated a decline of USD 100 per ton in the domestic market of South Korea in the week ending 29th September 2023. As per the market participants, amidst the Golden Week Holidays in China, the procurement activity has been slowed down, resulting in limited transactions for Nitrile Butadiene Rubber. In addition, the inquiries from downstream Rubber and Hoses industries were also moderate, as the downstream manufacturing firms have already restocked their inventories. Furthermore, The impact of increasing oil prices on consumer sentiments in South Korea is typically more significant compared to other OECD and developed countries. This is mainly because South Korea, as the fourth-largest economy in Asia, relies heavily on oil imports to meet its energy requirements. However, the manufacturing conditions in South Korea has been gradually stabilizing, reinforcing the major manufacturing sector such as construction and automotive.

According to the pricing intelligence of ChemAnalyst, the prices of Nitrile Butadiene Rubber might escalate in the European market in the wake of limited supplies to meet the demand from the downstream construction and automotive industries. In addition, the production cuts incorporated by OPEC+nations are likely to pressure the upstream Butadiene cost, prompting upward pressure on the price realizations of Nitrile Butadiene Rubber across the European market. However, In the APAC region, the prices of Nitrile Butadiene Rubber might progress in the southward direction amidst the fulfillment of inventories and suppressed Chinese demand due to the Golden Week holidays in the upcoming weeks.