Price of synthetic rubber in market
11% drop in the price of synthetic rubber
Following the drop in butadiene prices in recent weeks, as well as the decline in demand for synthetic rubber in the Chinese market, the price of this product in Asian markets experienced a sharp decline. Excess supply in the synthetic rubber market has already severely affected the industry. Butadiene prices hit a 12- to 16-month low in various parts of Asia this week. Concerns about oversupply in the butadiene market, as well as the volatility of China’s natural rubber futures market, are among the main reasons for the drop in prices. Last Tuesday, Sinopec cut the price of butadiene for sale to eastern China by more than 8 percent to 7,800 yuan, or about $ 962 based on import prices. This sharp drop in prices played a significant role in the volatility of butadiene in imported markets.
Meanwhile, due to falling butadiene prices as well as reduced demand for natural and synthetic rubber by Chinese rubber manufacturers due to environmental restrictions, the price of synthetic rubber in the Northeast Asian market last week exceeded last Wednesday. Fell 11 percent Last week, butadiene traded at $ 915 under the Chinese CFR contract, which represents a $ 40 price drop. The price in South Korea’s FOB contract fell by the same amount to $ 865. Also, the price of styrene butadiene rubber (SBR1502) or synthetic rubber in the CFR Northeast Asia contract fell by $ 150 this week to $ 1,350. The product became just as cheap at the CFR Southeast Asia contract, priced at $ 1,500.