Rising Raw Material Costs Push The Nitrile Rubber Market Higher

- Sep 08, 2020-

Last week, the market price of nitrile rubber continued to rise, and the ex-factory price of nitrile rubber was increased by 200-800 yuan per ton. The ex-factory price of Lanhua Nitrile N41 was 12,500 yuan/ton, some quotations rose to 13,000 yuan/ton, and 3305 was offered at 13,400 yuan/ton. The market price of 3305E is 13800-14000 yuan/ton; Ningbo Shunze nitrile followed up by 300 yuan/ton. The sudden increase in the market price of nitrile rubber is directly related to the rise in the raw material market.


It is understood that the upstream raw material butadiene market continues to operate strongly, Sinopec’s butadiene supply price has increased by 300 yuan/ton to 5700 yuan/ton, and the cost support is strong; FOB Korea is US$610/ton, CFR China US$610/ton, FOB Rotterdam US$460/ton, FD Northwest Europe 370 Euro/ton. As of September 4, Shanghai Secco's ex-factory price of acrylonitrile was 8,300 yuan/ton, an increase of 5.06% from the 7,900 yuan/ton at the beginning of the week.


Market supply: Lanzhou Petrochemical switched to 3305E at the end of the month, and Ningbo Shunze single-line production. The planned volume of some large terminals increased significantly in September. The supply of some brands of products from domestic merchants decreased, or the nitrile rubber market may increase. Although the actual consumption on the demand side has not increased significantly in the short term, the mid-traders have a strong hype atmosphere and the factory inventory is low, so the supply side has obvious intention to increase.


The downstream demand is generally weak, and the cost of raw materials in the short-term will increase the price of rubber. However, the nitrile rubber market may not continue to rise in the later period, or it may consolidate at a high level.