US and Asian HNBR Prices Surge in August Driven by Rising Feedstock Costs and Robust Demand

In August, the US and Japanese markets experienced price increases for Hydrogenated Nitrile Butadiene Rubber (HNBR), largely driven by rising feedstock costs, particularly Butadiene and Acrylonitrile. In the US, feedstock prices saw notable gains, while strong downstream demand from the automobile and aerospace sectors further bolstered HNBR prices. In Japan, despite a decline in domestic automobile sales and manufacturing challenges, strong overseas demand and rising Butadiene prices, which saw limited correction after a sharp Q2 increase and positive overseas market demand, contributed to the surge in HNBR prices.

In the US market, HNBR prices witnessed a marginal price increase this month. This marginal HNBR price rise is majorly attributed to the increase in the price of the feedstock, primarily Butadiene and Acrylonitrile. In the feedstock market, the domestic Acrylonitrile price marked a 3.3% increase in August, and Butadiene marked a 4.47% increase. However, in the downstream automobile sector, the US witnessed robust sales with 1,421,551 units sold in August, reflecting an 11.3% increase from July and a 6.0% rise compared to the previous year. In the aerospace sector, Boeing delivered a total of 42 aircraft in August, matching its July performance. This follows Boeing's trend of increasing aircraft deliveries, with August marking the third straight month of delivering 40 or more aircraft. Additionally, the ISM Manufacturing PMI edged up to 47.2 in August, showing a slight improvement from prior lows. These factors, along with the feedstock and the overall downstream market positivity, influenced the HNBR price in the US market.

In the Japanese market, Hydrogenated Nitrile Butadiene Rubber (HNBR) prices surged this month, primarily due to rising feedstock costs, especially Butadiene, which only saw a 1% correction after a significant 19.1% rise in Q2. The automobile sector struggled, with August passenger car sales dropping by 18.9%, totaling 328,470 units. However, the aerospace sector showed promise as Kawasaki Heavy Industries projected continued demand growth from Japan's Ministry of Defense due to defense-related policies. While Japan's manufacturing economy showed signs of stabilization, with output expanding modestly, PMI figures remained below the growth threshold. In terms of overseas market, Exports of Acrylonitrile-based rubber to China grew by 6.2% month-on-month in July, reaching 1,455.784 MT, while exports to the US soared by 124.9% to 1,840.833 MT, driven by robust overseas demand, supporting the HNBR market.

According to ChemAnalyst's anticipation, the price of HNBR in the Asian market is expected to show a bullish trend in the upcoming sessions. This upward movement in the HNBR price is mainly attributed to the expected rise in demand from downstream markets and the increasing prices of key feedstocks, particularly Butadiene and Acrylonitrile. Additionally, market participants are likely to engage in long build-up activities in inventory management, further contributing to the anticipated price increase for HNBR. As a result, HNBR prices are expected to continue their upward trajectory in the near term.