SunSirs: Cost Support, with a Slight Upward Trend in China NBR Market in February 2024

The NBR market slightly increased in February. According to the Commodity Market Analysis System of SunSirs, as of February 26th, the price was 15,162 RMB/ton, an increase of 3.68% from 14,625 RMB/ton at the beginning of the month. In February, the price of butadiene, a raw material for NBR, increased significantly, while the price of acrylonitrile narrowed, leading to an increase in the cost center of NBR; Downstream production of NBR started at a low level before and after the Spring Festival, resulting in weak demand for nitrile and weak support. The NBR plant is operating smoothly, and the supply side of the nitrile market is loose. After the holiday, some nitrile enterprises have raised their factory prices, and market quotations have slightly adjusted. However, market transactions remain mainly flat. As of February 26th, the mainstream market price of Lanhua Nitrile 3305 in East China is 14,300-14,600 RMB/ton; The mainstream price of Nandi Nitrile 1052 is 16,500-16,700 RMB/ton; Shunze nitrile 3355 mainstream reported at 15,200-15,500 RMB/ton; The mainstream price of Cebu nitrile 3365 is 14,000-14,200 RMB/ton.

In February, the price of raw materials such as butadiene increased significantly, while the price of acrylonitrile narrowed. As a result, the cost center of NBR shifted upwards. According to the commodity market analysis system of SunSirs, as of February 26th, the price of butadiene was 10,367 RMB/ton, an increase of 6.27% from 9,756 RMB/ton at the beginning of the month; As of February 26th, the price of acrylonitrile was 9,300 RMB/ton, a slight increase of 0.13% from 9,287 RMB/ton at the beginning of the month.

Before and after the Spring Festival, the downstream production of NBR hoses in China remained at a low level of around 20%, while the production of rubber insulation foam was around 20%. The demand side dragged down the NBR market.

SunSirs nitrile analysts believe that currently, the downstream demand for NBR is weak due to low production, but it is strongly supported by the rising cost of butadiene. It is expected that in the later stage, as downstream production increases, the NBR market may continue to rise slightly.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.