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.
For the Quarter Ending September 2023
North America
The prices of Nitrile Butadiene Rubber progressed in the southward direction in the US market. Throughout the third quarter of 2023, the manufacturers have had to reduce the prices in order to avoid stockpiling the product in the domestic market. The active manufacturing activities in the Asian markets have led to the sufficient availability of finished goods to cater to the demand from the importing nations. Furthermore, amidst the supply fears infused by production cuts announcements by OPEC+ Countries, the WTI crude oil prices have inched higher in August. In September, the inquiries from the downstream Automotive sector escalated and strengthened the market sentiments. As per the market sources, General Motors had a robust year, recording a substantial 21% increase in US sales, totaling 674,336 vehicles. On the upstream front, the prices of Butadiene have escalated amid an increment in International Crude Oil prices, supporting the upshift observed in the price realizations of Nitrile Butadiene Rubber. Thus, NBR 41%-66% CFR Los Angele prices were concluded at USD 3270 per ton at the quarter-end.
APAC
Throughout the third quarter of 2023, the prices of Nitrile Butadiene Rubber have remained on the lower end in the domestic market of South Korea. Demand from downstream automotive industries has remained lackluster and negatively impacted the pricing dynamics of Nitrile Butadiene Rubber (NBR). On the upstream raw material front, There has been limited cost support from the upstream Acrylonitrile and Butadiene. Furthermore, the slowing demand from China has added pressure to the NBR market among manufacturers. As per the market sources, LG Chem, a prominent NBR manufacturer in South Korea, has operated at reduced capacity due to the tepid demand from the downstream construction and automotive industries. However, South Korea's effective rebound from the pandemic underscores its robust economic foundations and adept policy reactions. Despite facing several waves of infections, the country has exceeded its pre-pandemic economic output. Towards the end of September, the demand from the Chinese market also escalated amid the improvement in demand from the terminal market. In addition, market players were also willing to stock up the inventories ahead of the Golden Week Holidays. Consequently, NBR 41%-66% FOB Busan prices settled at USD 2088 per ton in Q3-end.
Europe
In France, the Nitrile Butadiene Rubber has demonstrated bearish market sentiments throughout Q3. The sluggish performance of the construction industries has weighed extensively on the pricing dynamics of Nitrile Butadiene Rubber. The production facilities have operated at reduced rates for the maintenance of the market balance. Foreseeing the production dropping to its implied target, the demand for input energy materials such as Diesel and Natural Gas as well. Furthermore, on the input energy front, Natural gas prices in Europe remained on the lower end after falling 24% in July, reflecting subdued demand, high storage levels, and supply constraints. In addition, as per one of the leading manufacturers of NBR, Synthomer, a material recovery in customer demand before the end of the current year is not anticipated. In September, Energy-intensive industrial production has been condensed substantially. On the other hand, the demand from the downstream Gloves Industries has also been having troubles for some time, and extensive restructuring was still required for input raw materials. The ChemAnalyst database has shown that NBR 18%- 40% FOB Marseille prices hovered around USD 2796 per ton in September.
For the Quarter Ending June 2023
North America
Nitrile Butadiene Rubber prices have remained on the lower end throughout the second quarter of 2023 in the US market. Global economic headwinds such as spiraling inflation, tight monetary condition, and rising interest rates have weighed on the downstream Automotive demand. The manufacturers' inventories have expanded as the higher borrowing costs and economic conditions have been tempering the already constrained demand from the downstream automotive sector across the domestic region. However, the supply-chain constraints have been eased, and the logistics were restored. The shipping costs from North Europe to North America East Coast have declined amidst a slowdown in the global trade of chemicals. The ongoing economic structuring after the failure of two major banks in the late Q1 of 2023 in the US market has impacted the market performance of major manufacturing sectors, including the automotive sector. The core inflation has also trended above the US Federal Reserve's targeted levels, inching downwards slowly, pressuring trade activities. On the upstream front, the cost support from Acrylonitrile and Butadiene was also insufficient, as reported by market participants. Consequently, NBR 41%-66% CFR Los Angeles prices were settled at USD 3830 per ton in June-end.
APAC
In the domestic market of South Korea, the price trends of Nitrile Butadiene Rubber have witnessed mixed market sentiments. In early Q2, the NBR prices gained momentum and remained on the higher end amid The rise in inquiries from the downstream automotive sector. To build a designated electric vehicle (EV) production unit in Ulsan, South Korea, one of the leading downstream market players, Hyundai Engine Co., has started to donate around 2 trillion won ($1.51 billion), contributing to the strengthening of the market fundamentals of Nitrile Butadiene Rubber in the domestic region. However, towards the latter half, the procurement from the importing countries Vietnam and China was also average amid the weak economic conditions. According to the Korea Customs Service data, exports to Vietnam have been declining by double digits for seven consecutive months from November 2022 to May this year. Furthermore, the slowdown in transportation and logistic costs has also contributed to the price contraction of Nitrile Butadiene Rubber in the domestic region. In addition, the manufacturing purchasing manager index has also remained in the contraction zone (below 50 points) throughout the second quarter of 2023.
Europe
The prices of Nitrile Butadiene Rubber have observed volatile market growth in the domestic market of France. In the first half of the second quarter, The manufacturers were reluctant to destock the current Nitrile Butadiene Rubber stocks to start fresh production in the domestic region. As a result, the market players have opted for successive reductions to stimulate market shipments. Furthermore, on the upstream front, a decline has been observed in Butadiene costs in the given timeframe. The Trade Union has hampered the transport and refinery operations in French Market strikes against the rise in the minimum pension age. However, the higher inflationary pressures have prompted the production facilities to continue to operate at slightly lower rates. In order to avoid the accumulation of the product on the domestic market, The data shows that the manufacturing purchasing manager index has declined to 45.6 in April from 47.3 in March. Furthermore, In May 2023, France witnessed a year-on-year decline in consumer price inflation to 5.1%, dropping from 5.9% in the previous month. However, despite easing inflationary pressures, the dented demand from the downstream market has impacted the market dynamics of Nitrile Butadiene Rubber on a broader level in the Q2-end.
For the Quarter Ending March 2023
North America
In the first two months of 2023, the prices of Nitrile Butadiene Rubber have progressed in the north direction. The automotive industry has been gradually reviving, which has led to bullish market sentiments across the country. The rise in demand from the downstream automotive sector, coupled with hiked offers from the exporting countries, France and South Korea, has had a cumulative effect on the prices of Nitrile Butadiene Rubber. The input cost pressures also started to ease with gradual improvements in economic conditions across the country. However, towards the end of Q1, the financial sector worries amidst the failure of Signature and Silicon Valley Bank has constrained the downstream demand, weakening the market growth of Nitrile Butadiene Rubber. Therefore, NBR 41%-66% CFR Los Angeles prices were concluded at USD 4448 per ton at the end of the first quarter.
APAC
The prices of Nitrile Butadiene Rubber have demonstrated mixed market sentiments in the South Korean market. On the upstream price front, the costs of Acrylonitrile have fluctuated in a narrow range while the Butadiene prices demonstrated a bullish run. In mid-Q1, a strong surge was observed in the NBR costs. The market was strongly impacted by stock replenishment outlooks in Asian countries. The domestic demand from the downstream automotive sector has risen but at a slower pace. Furthermore, in March, The decline in freight charges and improved container rates ensured a constant flow of finished goods and led to stabilized market operations. The surplus inventories of the product in the domestic region and the slowdown in demand from the downstream automotive sector have prompted the manufacturers for price adjustments. Consequently, NBR 33%-38% FOB Busan prices were settled at USD 1779 per ton at Q1-end.
Europe
In the German market, the prices of Nitrile Butadiene Rubber have demonstrated a volatile market trend. At the start of the first quarter, the price realizations of NBR sustained their growth momentum on the back of raging inflationary pressures and tight monetary conditions across the European market. However, In March, the drop in consumption from the downstream automotive industries coupled with ease in input cost inflation hampered Nitrile Butadiene Rubber's market growth in the domestic region of Germany. The inventory levels have escalated, increasing the supply pressure. In addition, the freight charges were also relatively low amid a slowdown in shipments couldn't support the positive developments in the Nitrile Butadiene Rubber costs. Therefore, considering the aforementioned reasons, NBR 18%-40% CFR Hamburg prices were assessed at USD 4266 per ton in March.
For the Quarter Ending December 2022
North America
The US market has witnessed mixed sentiments for Nitrile Butadiene Rubber in Q4 2022. The production rate of manufacturing units was regular, and the inventories were adequate to cater to the demand from end-use industries. However, the rubber industry's downturn in offtakes decelerated NBR's market growth in December. In addition, the ease in the supply chain and softened inflation have a cumulative effect on the reduced value of Nitrile Butadiene Rubber. The market transactions were insufficient the supply of goods has continued to be abundant. Therefore, NBR 41%-66% CFR Los Angeles was assessed at USD 3950 per ton at the end of the fourth quarter.
APAC
The prices of Nitrile Butadiene Rubber have consistently dropped throughout the fourth quarter of 2022. In October, the procurement from the downstream rubber industries was insufficient and led to an accumulation of inventories among the manufacturers. As a result, the pressure on the supply side has increased, lowering NBR quotations for end-use industries. Furthermore, The sluggish factory activities, driven by weak domestic and foreign demand as COVID-19 spread in China in the mid-Q4, pressured the market sentiments of NBR. On the upstream cost front, Butadiene values have fallen, and the cost support on the NBR weakened in the domestic Chinese market. The ChemAnalyst database has shown that NBR 36%-43% Ex-Shanghai prices were settled at USD 2055 per ton in Q4-end.
Europe
In the fourth quarter of 2022, the price realization of Nitrile Butadiene Rubber has demonstrated a downward trajectory. High inflation has weighed on the downstream demand, and the production of goods has been weakened as there was sufficient product availability. The market participants have reported that the inflows of new inquiries from the downstream rubber industries remained bearish throughout Q4. However, the all-time high inflation has started to ease from mid-November to support the contracted German economy. During the quarter, IFP reported Germany might escape the grave threat of recession. Furthermore, upstream raw materials costs have plummeted, dragging down NBR's market growth. Consequently, in December, NBR 18%-40% CFR Hamburg prices settled at USD 3691 per ton.
For the Quarter Ending September 2022
North America
At the start of the third quarter of 2022, Nitrile Butadiene Rubber (NBR) prices demonstrated an increasing trajectory. As a repercussion of rising inflation in the country, tightened monetary policy and improved interest rates have been imposed by the US Federal Reserve to curb inflation. In mid-Q3, the market players reduced their quotations as the buyers were inclined to a cheaper spot market. As per the Institute of Supply Management (ISM), on the inflation front, the price index tumbled to 52.5 in August, dropping below 60 for the first time since August 2020. Furthermore, towards the end of the third quarter, the NBR prices escalated in the domestic region of the USA. On the demand side, active inquiries from the downstream automotive sector have fueled NBR's market growth among the manufacturers. Consequently, NBR 41%-66% CFR Los Angeles prices were assembled at USD 4085 per ton at quarter-end.
APAC
In the Asia-Pacific region, the price dynamics of Nitrile Butadiene Rubber (NBR) have remained volatile. The plummeting crude oil values have prompted negative pressure on the manufacturing costs of NBR in the key exporting country, South Korea. The imports from the regional markets have remained general amid global economic challenges. In the mid of September 2022, A key market player, Kumho Petrochemical, announced a significant investment initiative (approx. €5.5 billion) to boost NBR production in the domestic region. Furthermore, the positive development in the automotive sector has accelerated the demand dynamics of NBR toward the end of the third quarter. Consequently, NBR 41%-66% FOB Busan prices were settled at USD 2520 on September 30.
Europe
The price trend of NBR has fluctuated in the domestic market of Germany. The NBR prices first declined and then improved with surging natural gas costs. The market players have reported that the downturn in business activities of the downstream automotive sector has deepened as higher energy costs hit Europe, and a drop has been observed in new orders. However, in the middle of the third quarter, the cumulative sales rates increased owing to an upward shift in demand from the downstream automotive sector in the domestic region. Furthermore, the European central bank has raised its key interest rates by 75 basis points to combat the rising inflation in the country. On the upstream cost front, escalating values of Butadiene have pressured the market sentiments of NBR among the manufacturers. Therefore, German NBR 18%-40% CFR Hamburg prices were settled at USD 4125 per ton in September 2022.
For the Quarter Ending June 2022
North America
Unlike the APAC market, the North American NBR markets witnessed constant growth. When it comes to USA, the prices were increasing continuously due to the progression in feedstock prices. Adding to this is the increase in global freight costs and limited domestic production. Despite these, there was a growing demand for this product from downstream firms. Canada had seen increase in prices due to enhanced feedstock and import costs. Yet, like the US, downstream firms showed stable demand for NBR. In Mexico, the prices were increasing in this quarter, owing to growing feedstocks costs.
APAC
The market of Nitrile Butadiene Rubber (NBR) was different in various parts of the Asia – Pacific Region in the second quarter. As far as China is concerned, the prices were impacted and continued to drop down due to lockdowns imposed in various provinces in the month of April, followed by lower demand for this product from downstream industries. South Korea too followed an identical trend with prices. However, the Malaysian and Indian markets were in contrary to these countries. NBR market remained stable in India because of constant demand for this product and in Malaysia, the prices were increasing, owing to growth in feedstock prices and enhanced demand from domestic firms for several production purposes. Australian NBR markets too aligned with the Malaysian markets in this quarter.
Europe
In contrary to North American and Asia – Pacific markets, the European markets witnessed growth till May and saw a downfall in the Month of June. In France, NBR prices increased till May, because of lowered imports from China due to lockdowns imposed in it’s different regions, followed by increasing feedstocks costs. Another factor attributed to growth in costs is the constant demand for this product for downstream processing from various companies. The weakening of Euro against US dollar has also paved way for the prices to grow. Germany and United Kingdom too had witnessed increased prices of this product due to reduced imports and progressive orders for NBR for numerous production purposes.
For the Quarter Ending June 2022
North America
Unlike the APAC market, the North American NBR markets witnessed constant growth. Regarding the USA, the prices were increasing continuously due to the progression in feedstock prices. Adding to this is the increase in global freight costs and limited domestic production. Despite these, there was a growing demand for this product from downstream firms. Canada had seen increased prices due to enhanced feedstock and import costs. Yet, like the US, downstream firms showed stable demand for NBR. In Mexico, the prices were increasing this quarter, owing to growing feedstocks costs.
APAC
In the second quarter, the market for Nitrile Butadiene Rubber (NBR) was different in various parts of the Asia – Pacific Region. As far as China is concerned, the prices were impacted and continued to drop down due to lockdowns imposed in various provinces in April, followed by lower demand for this product from downstream industries. South Korea, too followed an identical trend with prices. However, the Malaysian and Indian markets were contrary to these countries. NBR market remained stable in India because of the constant demand for this product, and in Malaysia, the prices were increasing, owing to growth in feedstock prices and enhanced demand from domestic firms for several production purposes. Australian NBR markets too aligned with the Malaysian markets in this quarter.
Europe
Contrary to North American and Asia – Pacific markets, the European markets witnessed growth till May and saw a downfall in June. In France, NBR prices increased till May because of lowered imports from China due to lockdowns imposed in its different regions, followed by increasing feedstocks costs. Another factor attributed to the growth in costs is the constant demand for this product for downstream processing from various companies. The weakening of the Euro against the US dollar also has paved the way for the prices to grow. Germany and United Kingdom too had witnessed increased prices of this product due to reduced imports and progressive orders for NBR for numerous production purposes.
For the Quarter Ending March 2022
North America
The Nitrile butadiene rubber market has been termed as weak owing to sluggish market fundamentals. Material availability of NBR has been ample due to the influx of imports to US ports from Far East Asia and Europe. Despite resolutely high freight charges, Japan and South have been key exporters of the material importing hefty amounts of NBR on US shores. Shipping costs and freight charges have again been on the rise after stabilizing in late Q4 2021 and early Q1 2022. This has further deterred market sentiment and sent wait and see (conservative) approach among buyers. On-demand side, both Tire and Non-Tire consumption of NBR have slowed down, further deterring buying activities in the regional market. Hence, as of March, NBR prices were assessed at USD 2820 per MT on CFR basis.
Asia Pacific
Feedstock Butadiene prices increased substantially throughout the quarter, where Butadiene prices doubled to USD per MT after the conclusion of the first quarter. However, lacklustre performance of the construction industry denied the increase in butadiene prices to similar increase in Acrylonitrile Butadiene Rubber prices. NBR prices remained primarily stable throughout Q1 on the back of sluggish offtakes from downstream industries. As of March, Acrylonitrile Butadiene Rubber prices were assessed at USD 3740 per MT on FOB basis for NBR of Mooney Viscosity 140. In India, prices of Acrylonitrile Butadiene rubber started the quarter on a weaker note during the first quarter on the back of soft to stable demand from downstream automotive and construction industries. However, prices changed the momentum in the 2nd half of the quarter as the uncertainties regarding global supply chains gained traction and consequently, prices of NBR rose by 3-5% in the Indian domestic market depending on the location.
Europe
Feedstocks Acrylonitrile and Butadiene prices climbed during the first quarter in the global market, and the European market also mirrored the same market sentiment. The rise in feedstock prices increased the inflationary pressure on downstream Nitrile Butadiene Rubber (NBR). Hence prices of NBR gained consistently throughout Q1 2022. On-demand side, the consumption of NBR remained on the healthy side owing to the versatility of NBR and its usage in several key industries, including the transportation and medical industry. Imports from South Korea remained costly due to rising freight charges and increased transit fees. Hence, as of March 2022, Nitrile Butadiene rubber prices were assessed at USD 3460 per MT on FD basis.
For the Quarter Ending December 2021
North America
Asian exports of Nitrile Butadiene rubber remained weak on US shores owing to strong freight charges and long transit time. Domestic production increased in Q4 in comparison to earlier quarters on the back of no unforeseen weather conditions and increased availability of feedstock Butadiene and Acrylonitrile. Market participants struggled for Butadiene during Q3 and consequently, prices crossed USD 2000 per MT however supply of Butadiene increased in Q4 and thus prices declined in the last quarter. On demand side, automotive industry output remained sluggish which deterred Nitrile Butadiene Rubber market sentiment, however limited inventories kept the prices firm during Q4 and therefore, NBR prices in USA were assessed at USD 3490 per MT.
APAC
Festive season in India provided ample opportunity to major automakers and aviation sector to increase their businesses and project significant profit in H1 of the Q4. However, despite of soaring demand, shortage of semiconductor chips curtailed the overall production and reduced the output of automakers. Furthermore, rising raw material cost also remained a major concern for these major manufacturers, as their margins plummeted. Thus, Nitrile Butadiene Rubber (NBR) prices improved consistently throughout the quarter and settled around INR 229300 per MT NBR (HNR 36%-43%) in December. In China, Nitrile Butadiene Rubber prices started the quarter on a strong note on the back of robust demand, however consumption levels stabilized while feedstock costs declined in H2 which resulted in weakened market sentiment in December. Therefore, prices of NBR in China settled at USD 2880 per MT in H2 of Q4.
Europe
European automotive sector remained sluggish throughout the quarter owing to stagnancy in production levels of automotive vehicles. Nitrile Butadiene Rubber has both tire and non-tire applications in automotive and transportation industry and therefore rely heavily on the performance of automotive industry. On supply side, domestic production improved in Q4 owing to comparatively increased availability of feedstocks. However, imports remained hampered due to resolutely high freight charges and shipping costs on Mediterranean routes. Consequently, Nitrile Butadiene Rubbers were declined during the last quarter and were assessed at USD 3560 per MT in December.
For the Quarter Ending September 2021
North America
The prices of Nitrile Butadiene Rubber (NBR) rose effectively in the North American region during the third quarter of 2021 backed by the tight availability and rising cost of upstream Acrylonitrile and Butadiene. The still growth in the automotive sector limited the bearing as other downstream sectors including construction kept the consumption levels strong throughout the third quarter. Offtakes remained firm in Q3 2021 from the automotive sector despite dull production due to the global shortage of semiconductor chipsets.
Asia pacific
The demand outlook demonstrated an upward trajectory in the Asia Pacific region in Q3 2021. In India, the market sentiments of NBR experienced a marginal improvement buoyed by gradual improvement in demand from downstream segments following ease in lockdown restrictions. Apcotex Industry, a key manufacturer of NBR in India announced an 11-day maintenance outage at its Valia, Gujarat facility w.e.f. 2nd July. EXW-NBR (HNR 36%-43%) price in India was assessed at USD 3643 per metric tonne in September. Traders revealed that in the last two weeks of July, buyers sought for more material due to pick-up in industrial activities.
Europe
The market outlook of Nitrile Butadiene Rubber (NBR) strengthened in the European region during the 3rd quarter of 2021. Prices of NBR remained firm in the month of September due to improved supply across the region. Maintenance drives and unplanned outages ended in the third quarter which improved the availability of upstream in Europe. The demand stood affected from the automotive industry due to supply bottlenecks and shortages of semiconductors across the globe.
For the Quarter Ending June 2021
North America
During Q2 2021, Nitrile Butadiene Rubber (NBR) supplies in the North American region significantly improved compared to the previous quarter owing to the surged production rates in the rubber manufacturing facilities as producers ramped up run rates to cope with the spike in industrial demand. However, several Butadiene producers in the US Gulf region struggled to operate at normal efficiency sending sharp gains to the NBR price curve in May-June period. NBR latex demand was bolstered from the Nitrile glove manufacturers while offtakes from the tire industries surged to cope up with the rise in demand from the automotive sector. Despite dull production of automobile due to the severe shortages of semiconductor chipsets, spot buyers observed procuring large orders ahead of the upcoming Hurricane season. As a ripple effect NBR pricing trend in the North American region stabilized after witnessing tremendous growth since the start of 2021. FOB Ohio discussions were assessed at USD 3070 per tonne in June.
Asia pacific
During the second quarter, the supplies of Nitrile Butadiene Rubber (NBR) remained overall balanced as production rates at manufacturing plants were ample to meet the surging end use demand. Some constraints were witnessed in China amid the May Day holidays. Feedstock Butadiene prices surged amidst rising inflation rate in the Chinese domestic market. Demand was consistent from the downstream medical gloves and tire industries, backed by strong overseas enquiries from the North American region. Hampered by the impact of COVID-related restrictions in India, NBR offtakes were affected proportionally during Q2, and Ex-Works Mumbai NBR offers slipped to USD 3430 per tonne in June.
Europe
The European Nitrile Butadiene Rubber (NBR) market was stable owing to the better operating rates at several manufacturing facilities however export of volumes to the US put significant pressure in the regional market supply. Demand surged as most US buyers preferred the European shipments over Northeast Asian cargoes due to lower freight charges and high import duties by the US government on the Chinese origin materials. NBR offtakes surged from the downstream tire industries to meet growing demand from the recovering automotive sector. NBR priced in the European market remained firm buoyed by the limited feedstock availability and high demand.
For the Quarter Ending March 2021
North America
The supplies in the US were snug during the first quarter of 2021, owning to the impacts from the unprecedented freeze fallout in Texas and nearby gulf region in the US. Furthermore, it is anticipated that market remained stressed till next quarter. Feedstock Butadiene availability was limited with TPC Houston and Shell Deer Park not restarted till the final week of March, which represented nearly 30% of the US BD capacity. Feedstock unavailability prompted several NBR producers in the US to operate at curtailed rates and raise their monthly offers in March.
Asia-Pacific
The supplies of NBR in the Asia Pacific region remained balanced during Q1 2021, as an outcome of unplanned shutdowns of major plants in China amid Chinese Lunar New Year, however contemplated by the addition of new facilities in China. With the overall construction and automotive sector restoring with economic upturn, backed by higher crude oil price stimulated the Chinese NBR market to register sharp rises. While the prices could not trace back to pre-pandemic levels, Ex-Works Nanjing prices of Nitrile Butadiene Rubber in China were assessed around USD 2300/ton in February.
Europe
During the first quarter of 2021, the supplies of Nitrile Butadiene Rubber remained constrained as major economies in the region such as Germany, France etc. declared lockdown due to re-emergence of another wave of infections, followed by reduced imports of the feedstock supplies from the US. The demand slightly improved as the automotive sector slowly recovered and sales improved from the previous quarter.
For the Quarter Ending September 2020
Asia
Price of NBR surged across the region because of the soaring feedstock Butadiene and also due to improved demand from the agricultural sector. By the end of September, prices were on a continuous uptrend and were assessed around USD 2200 per MT CFR India. With the initiation of antidumping investigation on NBR import from China, EU, Japan and Russia, Indian NBR producers turned optimistic over curtailed cheap imports. Higher feedstock prices and stable market demand lead to higher price realizations even in China although demand from the automotive sector stood in the doldrums.
Europe
The third quarter Nitrile Butadiene Rubber prices remained high due to tight supply with better buying appetite from domestic as well as Asian buyers. Further increase was seen in the contract prices because of the increased upstream values. Maintenance shutdowns, unplanned issues kept the NBR supply snug throughout the quarter. Revived demand from Asia was starting to again support trader sentiments. Closure of Lanxess AG’s NBR unit in Q2, supported the high pricing of the product during the third quarter.
