Germany- In the European market, the prices of Styrene Butadiene Rubber (SBR) kept following the downfall momentum in the previous week of October 2022, and the price was at USD 3300 per MT, FD Wuppertal (Germany) with a decline of approximately 2.4%. The declining automotive sector became the key factor for the diminishing SBR prices. According to the European Automobile Manufacturers Association (ACEA), European car sales have shrunk by a quarter compared to pre-Covid-19 market sales. SBR production requires two raw materials, styrene, and butadiene. One of these two, butadiene prices, have been declining to impact the production cost of SBR.

Decreased supply chain flexibility in Europe is a significant issue conquered by the automotive sector and the raw material suppliers. The European government proposed an EU Critical Raw Materials Act that ensured strategic access to the raw materials required for e-mobility and accelerated charging infrastructure rollout to ease the supply of raw materials. The demand for SBR declined in the European market as car sales slipped because of high fuel prices and inflation.

Fear of recession has put consumers in turmoil, impacting the demand for SBR in the European region. Major Events such as the Covid-19 pandemic, Brexit (withdrawal of the United Kingdom from the European Union), political stress between Russia and Ukraine, and semiconductor shortage impacted the production and sales of the automotive sector. The European region's external and internal factors affected the Styrene Butadiene Rubber (SBR) markets.

As per ChemAnalyst, the rising energy cost and the supply bottleneck are driving the market sentiments of SBR in the European market. Major Styrene Butadiene Rubber (SBR) producing units faced less inquiry about the product pressuring them to lower the prices. Market participants anticipate that the recession fear and increasing competition in the market will proportionally impact the SBR prices, and a slight fall may continue to happen in the regional market.