For the Quarter Ending September 2024
North America
In Q3 2024, the Nitrile Butadiene Rubber (NBR) market in North America experienced a downward trend in pricing, with the USA being the most affected. This quarter has been challenging for NBR due to various factors influencing market prices.
The primary cause of this decline was found to be poor domestic demand along with cautious market behaviour. At the same time, supply fundamentals have remained stable over the last few weeks, with constant supplies. Not only do suppliers have a sufficient supply of the goods, but so do buyers, resulting in downward pressure on NBR pricing. Additionally, the decline in crude oil prices and uncertainties surrounding global economic conditions have contributed to the negative price trend.
The 4% change from the previous quarter in 2024 indicated a continuation of the price decline. The comparison between the first and second half of the quarter showed a -2% change which further emphasized the consistent decrease in NBR prices. The latest quarter-ending price of USD 3170/MT for NBR 41%-66% CFR Los Angeles in the USA showcased the prevailing negative sentiment in the pricing environment.
APAC
In Q3 2024, the Nitrile Butadiene Rubber (NBR) market in the Asia-Pacific region witnessed a significant decline in prices. This quarter was characterized by a multitude of factors influencing market dynamics. The domestic market for NBR appeared to be sluggish implying that customers were not actively looking to buy the commodity. The lack of demand put downward pressure on pricing. Despite the drop in demand, the supply of NBR remained stable. The commodity excess contributed to reduced prices since sellers were eager to provide discounts to draw in buyers. Market participants took a cautious approach, most likely owing to uncertainties about future economic conditions or price swings. The hesitation has resulted in decreased demand for NBR. Reduced demand from various downstream construction and automotive sectors, cautious market behavior, and a surplus of NBR supply were the primary drivers behind the price decrease. However, Japan stood out with the most significant price changes in the region. The overall trend in Japan reflected a consistent decrease in NBR prices, aligning with the regional sentiment. There was a slight improvement from the previous quarter in 2024, with a 7% increase. Interestingly, comparing the first and second half of the quarter, there was a minimal decrease of 2% in prices. The quarter-ending price for NBR 36%-43% FOB Osaka in Japan settled at USD 2165/MT, underlining the prevailing negative pricing environment in the region.
Europe
In Q3 2024, the Nitrile Butadiene Rubber (NBR) pricing landscape in Europe witnessed a downward trend. This decline was primarily influenced by factors such as subdued demand from downstream industries, including the automotive and construction sectors, coupled with limited procurement activities. The market conditions were characterized by a mismatch between supply and demand. While suppliers have ample inventory, weak domestic demand and cautious market sentiment have limited the consumption of available products. This imbalance has created downward pressure on prices, indicating a challenging environment for NBR producers and buyers alike. The market sentiment was further dampened by ongoing inflationary pressures, which constrained consumer spending and overall demand for NBR. In France, the region experiencing the most significant price changes, NBR prices saw a 3% decrease from the previous quarter in 2024. The correlation in price changes indicated a slight decline of 1% between the first and second half of the quarter. Overall, the pricing environment in France reflected a negative sentiment, with prices ending the quarter at USD 2390/MT of NBR 18%- 40% FOB Marseille. This consistent downward trajectory underscored the challenging market conditions and the impact of macroeconomic factors on NBR pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Nitrile Butadiene Rubber (NBR) has experienced an uptick in prices. This escalation has been influenced by several key factors, including heightened geopolitical tensions, increased crude oil prices, and elevated freight rates. Elevated crude oil prices have resulted in higher manufacturing costs, thereby pushing NBR prices upwards.
Geopolitical disturbances, specifically in Eastern Europe and the Middle East, have further exacerbated supply chain disruptions, leading to increased shipping costs and longer transit times. Additionally, spot ocean freight rates from the Far East to North America surged, adding further pressure on the market.
Focusing on the USA, which saw the most significant price changes, the market exhibited bullish sentiment throughout the quarter. Seasonal demand from the automotive and construction sectors contributed to the rising prices, despite moderate supply levels. The quarter concluded with NBR 41%-66% CFR Los Angeles prices at USD 3200 per metric ton. Overall, the pricing environment for NBR in North America, particularly in the USA, has been positive, driven by strong market fundamentals and external economic pressures.
APAC
In Q2 2024, the Nitrile Butadiene Rubber (NBR) market in the APAC region has experienced considerable volatility, marked by a pronounced uptrend in prices. This quarter has seen a significant increase in NBR prices driven by multiple factors. Key among these is the rising cost of upstream Butadiene, exacerbated by geopolitical tensions in Eastern Europe and the Middle East, leading to higher international crude oil prices. Additionally, increased freight rates due to port congestion and vessel shortages have further compounded the price hikes. The automotive sector's steady demand, despite economic uncertainties in major markets such as China and the cautious stance of the US Federal Reserve on interest rate cuts, has also provided strong market support. Focusing on Japan, where the most substantial price changes were observed, the NBR market dynamics have been notably bullish. Seasonality played a role as summer months typically increase fuel demand, contributing to higher crude oil prices. The correlation between rising raw material costs and manufacturing expenses has been direct, reflecting in the NBR price surge. The latest quarter-ending price for Japan is USD 2175/MT for NBR 36%-43% FOB Osaka. Overall, the pricing environment for NBR in the APAC region during Q2 2024 has been predominantly positive, characterized by supply chain challenges, and escalating raw material costs. This confluence of factors underscores the market's upward price momentum, albeit within a volatile economic landscape.
Europe
In Q2 2024, the Nitrile Butadiene Rubber (NBR) market in Europe exhibited a dynamic pricing landscape, driven by a combination of demand fluctuations, supply chain constraints, and macroeconomic factors. This quarter has seen a notable stabilization in NBR prices, influenced significantly by moderate demand from downstream industries such as automotive and construction. The availability of finished goods was sufficient to meet market needs, although operating rates at manufacturing firms haven't returned to pre-downturn levels. Additionally, persistent inflation in services and fluctuations in crude oil prices contributed to the nuanced pricing environment. The European Central Bank's measures to address inflation, alongside geopolitical factors impacting shipping routes and costs, also played a crucial role in shaping market dynamics. In Germany, the NBR market saw the most significant price changes, reflecting broader economic trends. The overall trend in Germany was one of gradual price increases, with seasonal factors and supply chain adjustments exerting pressure on prices. The quarter-ending price for NBR 18%-40% CFR Hamburg in Germany stood at USD 2490/MT, reflecting a positive sentiment in the pricing environment. This increase is indicative of a cautiously optimistic market outlook, driven by improving demand and strategic supply management.
For the Quarter Ending March 2024
North America
The Nitrile Butadiene Rubber (NBR) prices in North America have experienced a mixed trend in the first quarter of 2024. Several factors have influenced the market prices, including weak demand from the downstream automotive industries, reduced industrial activity, and the persistent inflationary pressures.
The inflow of new inquiries from the downstream Automotive industries has remained average. As per the market sources, US new vehicle sales of 1,082,620 units for January represented a decrease of 25.6% from December 2023 and an increase of 2.2% from one year ago in January 2023, further weakening the demand dynamics for upstream raw materials, including Nitrile Butadiene Rubber. Concerns regarding the supply of Crude Oil, stemming from production cuts by OPEC+ nations, have also posed challenges for the downstream industries.
Throughout the quarter, there has been a stable pricing environment, with no significant changes observed between the first and second half of the quarter. This stability can be attributed to the subdued market sentiment and limited demand for NBR. The quarter-ending price for NBR 41%-66% CFR Los Angeles in the USA is recorded at USD 2960 per metric ton, reflecting the decreasing sentiment in the pricing environment.
APAC
The first quarter of 2024 has seen a significant decrease in prices for Nitrile Butadiene Rubber (NBR) in the APAC region. Several factors have influenced this downward trend, including weak demand from the downstream automotive and construction sectors, as well as reduced inquiries from major importing countries such as China. The market has also been affected by higher Crude Oil prices, which have increased manufacturing costs for NBR. Overall, the pricing environment for NBR in the APAC region has been negative during this quarter. As per the market sources, the inflow of new inquiries from the downstream automotive industries has remained moderate reported by market participants. Most of the market transactions were based on smaller orders. According to data released by the Japan Automobile Manufacturers Association, new vehicle sales in Japan declined by 21% to 451,444 units in March 2024 from 572,494 units a year earlier, pressuring the market sentiments of Nitrile Butadiene Rubber. Japan has experienced the most significant price changes, with a decrease of 44% compared to the same quarter last year. The price drop from the previous quarter in 2024 was recorded at 14%. In Japan, NBR prices have remained stable in recent weeks, with a quarter-ending price of USD 1890/MT for NBR 36%-43% FOB Osaka. This reflects the overall decreasing sentiment in the market.
Europe
In Q1 2024, Nitrile Butadiene Rubber (NBR) prices in the European region experienced a significant decrease. Various factors contributed to this downward price trend. Weak demand from the downstream automotive sector was a major factor. Furthermore, high inflation rates, rising interest rates, and elevated gas and electricity prices in the EU impacted the purchasing power of end-use industries, further weakening demand for NBR. In Germany, the demand from the downstream construction and automotive industries for Nitrile Butadiene Rubber (NBR) was moderate, resulting in average procurement levels. According to market sources, sales of new cars in Germany declined in March. The KBA federal transport authority reported that a total of 263,844 new cars were registered in Europe's largest economy last month, down 6.2% from the same period a year earlier. Towards the end of the first quarter, Germany's construction sector experienced a significant decline, with builders expressing pessimism due to weak demand caused by high interest rates and economic instability. Germany, in particular, saw the maximum price changes during this quarter. NBR prices in Germany decreased by 34% compared to the same quarter last year and by 13% compared to the previous quarter in 2024. The price comparison between the first and second half of the quarter showed a 3% decrease. The quarter-ending price for NBR 18%-40% CFR Hamburg in Germany was recorded at USD 2400/MT.
For the Quarter Ending December 2023
North America
The North American Nitrile Butadiene Rubber (NBR) market remained bearish in Q4 of 2023. The demand from the downstream automotive sector did not rebound completely, leading to the limited operating capacities of the downstream manufacturing firms. The low demand from the construction industry and reduced purchasing power of US consumers due to high interest rates have also affected the market sentiments of NBR. The reduction in crude oil prices and sufficient availability of finished NBR stocks have prompted downward pressure on the pricing dynamics of NBR.
However, in mid-Q4, In the USA, the inflow of new inquiries from the downstream automotive sector has been observed to be average, and the availability of input raw materials is sufficient to cater to downstream production. Furthermore, in December, during the destocking season, manufacturers reduced prices to encourage new shipments. According to the US Commerce Department, exports decreased in November due to weak global demand. Both domestic and international markets are slowing down, due to significant interest rate increases by global central banks since 2022 to address high inflation.
The latest price of NBR 41%-66% CFR Los Angeles in the USA for the current quarter is USD 2990/MT. The percentage change in prices from the previous year's same quarter is -26%, while the percentage change from the current to the previous quarter is -19%.
APAC
The Nitrile Butadiene Rubber (NBR) market in the APAC region has witnessed a bearish trend in the current quarter of 2023. The prices of NBR have been impacted by various factors, such as low demand from the downstream automotive industries and Volatility in upstream Butadiene prices. In mid-Q4, The market sentiments were slightly strengthened by inquiries from the downstream construction industries. The availability of finished Nitrile Butadiene Rubber has remained sufficient throughout the quarter. One of the major plant shutdowns reported was by Hyundai Chemical JV in South Korea, which shut down its Butadiene plant for maintenance. Japan has seen the most significant changes in NBR prices, with a price decrease of 3.1% in Q4 compared to the previous quarter. The price trend in Japan has been affected by factors such as low demand from the downstream automotive industries, persistent inflationary pressures across Western markets, and weak inquiries from the downstream construction industries. The price of NBR 36%-43% FOB Osaka in Japan for the current quarter is USD 2030/MT. During the year-end, the destocking season has further prompted the bearish market sentiments of Nitrile Butadiene Rubber.
Europe
The Nitrile Butadiene Rubber (NBR) market in Europe witnessed a bearish trend in Q4 2023 with moderate to low demand from downstream sectors such as Automotive and Construction. The factors affecting the market were a decline in new Automotive projects, inflationary pressures, and lower operating rates in previous quarters, leading to supply-side pressures. The German new-car market recorded 245,701 deliveries in November, down 5.7% year on year, fuelling the bearish market sentiments. As per the market sources, European Nitrile Butadiene Rubber consumption trends have indicated a slower recovery from the post-COVID era, with current levels below last year's average. Additionally, Europe's natural gas prices continued to fall, pressuring the manufacturing costs of various commodities, including NBR. No plant shutdowns were reported during the quarter. In December, Germany witnessed a drop in price realizations of NBR due to tepid inquiries from downstream sectors amidst the year-end destocking and holiday season, The cost support from raw materials was insufficient to cause a positive development in the prices of Nitrile Butadiene Rubber. The percentage change from Q3 2023 was -22%. The price percentage comparison of the first and second half of the quarter in Germany was -13%. The latest price of NBR 18%-40% CFR Hamburg in Germany in Q4 2023 was USD 2440/MT.
