Synthetic Rubber Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Synthetic Rubber in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Synthetic Rubber Price Trend for the Second Half of 2022

Asia

The market dynamics for synthetic rubber products like styrene-butadiene rubber, neoprene, etc., fluctuated throughout the third and fourth quarters of 2022. The prices in the Asian region were affected majorly due to the sluggish demand from the tire industry, and logistical conflicts between South Asian regions. The fourth quarter was majorly affected by the imposition of covid restrictions, oversupply, and low production costs of the products, which led to the downward trajectory of the prices of synthetic rubber products.

Europe

The declining price trends for synthetic rubber in the European region were primarily due to the dwindling demand from the shoe, automotive, carpet, and construction industries. The region also witnessed oversupply issues due to which major production plants were forced to shut their production completely. The rise in diesel and overall energy production costs, declining demand from both domestic and international markets, and the rise in inventories adversely affected the prices of synthetic rubber in this region.

North America

In the North American region, the prices fell in the fourth quarter after being stagnant in the third quarter. The price trend was significantly affected by sufficient feedstock availability and the sluggish demand from the end-user industries. The shortage of labour and rising inflation along with slowed production due to festival season kept the prices of synthetic rubber in the negative zone. The price trend, thus, in the North American region followed a downward trajectory.

Analyst Insight

According to Procurement Resource, the price trends for Synthetic Rubber are expected to gain some momentum and showcase a mixed trend in the upcoming quarter. The demand from the end-sector industries such as automotive and the ripple effects of the Russia-Ukraine war will be the major players in determining the price of synthetic rubber products in the market.

Synthetic Rubber Price Trend For the First Half of 2022

Asia

The synthetic rubber prices surged throughout the Asian market as the prices of crude oil reached a new maximum. The petrochemical industry was deeply impacted by the trade restrictions, lack of raw materials and port congestions. The resurgence of covid-19 in powerhouse China led to a series of lockdowns causing the factories to halt production. The strong market sentiments provided the needed demand side support hence, the prices of synthetic rubber soared throughout Asia.

However, with the high-cost inflation and cautious buying activity of traders, the synthetic prices started to stabilize. The rubber prices started to decline due to demand destruction owing to contractionary monetary policies by banks the world over and the looming threat of a global recession. The price of Styrene Butadiene Rubber averaged 172410 INR/MT in the Indian market while that of neoprene-Guangdong CR121 averaged 43250 RMB/MT.

Europe

The synthetic rubber pricing patterns held steady during the time period mentioned. The manufacturers increased their prices to protect their profitability as a result of the elevated costs of raw materials, power, and crude oil. The strong demand from the packaging, automotive, and pharmaceutical industries further supported these increased quotes. During the specified period, the price of Styrene Butadiene Rubber averaged 3420 USD/MT chloroprene rubber prices increased by 7.3%.

North America

The higher prices of synthetic rubber throughout the US domestic market were supported by trade restrictions along with labour shortages, commodity inflation, and surging market attitudes. While the price of SBR ranged between 3750 and 3940 USD/MT while that of chloroprene rubber recorded a hike of 4.5% ( approx.).

Procurement Resource provides latest prices of Synthetic Rubber. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.