Polybutadiene Rubber price surge in Europe and Stabilised in US amid mixed supplier’s action

In the latter half of March, Polybutadiene Rubber (PBR) prices stabilized in the US while experienced a surge in Europe and Asian market. This pricing trend can be largely credited to supplier's strategic actions, including retracement in Europe, and reduced bulk inventory accumulation efforts. These combined factors significantly influenced the regional market's PBR pricing dynamics, contributing to the observed stability and surge.

In the USA, PBR prices have defied a global trend of decline, stabilizing due to strategic short build-up activities by suppliers, countering destocking trends. This resilience reflects supplier adaptability, effectively managing inventories amidst market fluctuations. Despite global pressures, the US export market maintains steady prices, indicating balanced supply and demand dynamics. This stability, evidenced by a price halt at 1710 USD/MT FOB-Texas, assures both domestic and international buyers of a reliable PBR source amid uncertain market conditions. US supplier's adept management of production levels and inventories ensures price stability, benefiting stakeholders amidst volatile market trends.

In the European market, particularly in Germany, PBR experienced a significant surge in the latter half of March. This notable increase in price coincided with positive growth in the automotive sector, driven by a rise in feedstock prices, notably Butadiene. Suppliers' actions, aimed at stimulating demand, contributed to a favorable market environment. However, despite this upward momentum, the ongoing downturn in prices prompted a retracement, leading market participants to adopt a cautious "wait and watch" approach regarding inventory accumulation. This shift in sentiment suggests a potential trend reversal in pricing dynamics. The collective impact of these factors has been instrumental in shaping the PBR market landscape in Europe. As of the fourth week of March, the price of PBR stood at 1520 FOB-Hamburg.

In the Asian market particularly Japan, the price of the PBR witnessed a notable surge at 2700 USD/MT FOB Tokyo. In related news, Yokohama Tire's announcement of a $380 million investment in a new passenger tire plant in Mexico is anticipated to increase production by 5 million tires annually from the first quarter of 2027. Similarly, Kumho Tire's plans for a new factory in Europe are progressing, with further details expected soon. Financially, the Bank of Japan concluded its 17-year negative interest rate policy, raising its key short-term rate to 0.0-0.1%. Additionally, the Swiss National Bank surprised markets with a 0.25% rate cut amidst declining inflation.

According to ChemAnalyst's analysis, the price of PBR is anticipated to exhibit a stable to bearish momentum in the upcoming sessions, despite increased demand from downstream automobile sectors. This expectation stems from ongoing pricing factors that continue the downward trend, with market participants hesitant to engage in bulk accumulation due to a lack of confirmation regarding a price trend reversal. However, positivity in the Asian market, particularly the outperformance in the Chinese and Indian downstream sectors, is predicted to drive PBR prices towards a bullish trend.