Since March, the nitrile rubber market has experienced a significant upward trend

Since March, the nitrile rubber market has seen a significant upward trend. According to the Commodity Market Analysis System of Shengyi Society, as of March 24th, the price was 21175 yuan/ton, an increase of 30.31% from 16250 yuan/ton at the beginning of the month.

The escalation of geopolitical conflicts in the Middle East has led to a significant increase in international crude oil prices, driving upstream butadiene trading at high levels (FOB South Korea $2030/ton, CFR China $2050/ton). The cost of core raw materials such as butadiene and acrylonitrile has skyrocketed, and the cost pressure on enterprises has increased sharply. There are maintenance plans for nitrile rubber plants at home and abroad in the later stage, which supports the supplier’s confidence in raising prices.
In March, domestic nitrile rubber plants started operating at a high level, and there are maintenance plans for nitrile plants both domestically and internationally at the end of March and April.
In February, the prices of raw materials butadiene and acrylonitrile surged, and the cost of nitrile rubber was strongly supported. As of March 24th, the price of butadiene was 16766 yuan/ton, an increase of 67.78% from 9933 yuan/ton at the beginning of the month; As of March 24th, the price of acrylonitrile was 11366 yuan/ton, an increase of 60.09% from 7100 yuan/ton at the beginning of the month.
At the beginning of the month, downstream product companies mainly focused on digesting inventory. Later on, with the intensification of the Middle East geopolitical conflict, some downstream companies considered purchasing in small quantities at a later cost. The production of nitrile rubber downstream hoses in China was at 68%, and demand faced the rigid demand support of nitrile rubber.
Market forecast: Business Society’s nitrile analyst believes that the current cost support for nitrile rubber is strong; Stable downstream demand; The supply of nitrile rubber is expected to decrease in the later stage, and it is expected that the nitrile rubber market will consolidate at a high level in the short term.