Synthetic rubber suppliers face a crude hard truth

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This observation — by Yuka Kimoto, director of marketing for Lion Elastomers — is the accepted wisdom in the synthetic rubber market, and with good reason.

Prices for a wide swath of synthetic rubbers have gone sharply up in the past few months, sparked by equally sharp increases in butadiene, methanol and other petrochemical feedstocks.

Considering oil prices alone, there is no reason to believe that feedstock prices — and, with them, SR prices — are coming down any time soon. As of March 30, futures for both West Texas Intermediate Crude and Brent Crude were at a three-week high, at around $50 or so per barrel, indicating bullish prices for anything based on petroleum.

However, according to authoritative sources, butadiene prices are starting to fall.

The reason is another well-known factor, in SR and in every other commodity: supply and demand. In the case of butadiene, there was another issue: location, location, location.

Scheduled and unscheduled maintenance shutdowns for butadiene facilities in Asia and Europe placed limits on the availability of butadiene, according to sources who spoke to Rubber & Plastics News and European Rubber Journal.

An unexpected surge of demand for butadiene in China, starting in the fall of 2016 and continuing into 2017, caused Asian butadiene prices to soar as high as $3,000 per metric ton. North American and European prices, though never as high as in Asia, rose accordingly.

Read the source article at Global Rubber Markets News

Global Automotive Rubber Molded Components Market – Forecasts and Trends (2017 – 2022)

The global automotive rubber moulded components sales grew from 65 million during the 2008-09 recession to over 89 million in 2015, with a spike of over 19% during the past seven years. In light of the growing demand for fuel-efficient and less polluting vehicles, the market for lightweight automotive components of higher durability is on the rise. Further, with chemical companies such as Chem-Trend coming up with better release agents and moulding process aids, the market for automotive rubber moulded components is expected to touch USD 45.16 billion by 2021. Technological advancements have been the major trigger for this growth. Innovations such as Ford’s eco-friendly rubber parts using soy oil and research labs trying to come up with better and durable rubber materials like EPDM are expected to drive the market at a CAGR of 6.26% by till 2022.

 

Read the source article at Global Information, Inc. (GII)

Supply and demand of neutral bearish rubber fell sharply

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March, natural rubber continued unilateral decline in the trend continued to continue unilateral decline, and continue to hit a new low, but then encounter, stabilized stabilized, and returned to a technical rebound, which reflects the supply and demand of natural rubber market The relationship is reversed from the background and the essence of the reversal.

Prospects and Strategy Suggestions

Looking forward to April trend, by the international and domestic aspects of the neutral factors of the neutral intertwined effect, in the surrounding Tokyo City, Singapore rubber market both down the trend of deep down, Hujiao market outlook will continue the formation of the original deep down Of the trend, while subject to the global macroeconomic and financial situation neutral factors, although the short-term may fall sharply, but the medium-term may return to the low regional concussion trend, the operation should be short-term low-absorbing high-throwing.

Read the source article at Global Rubber Markets News

ANRPC Releases Natural Rubber Trends & Statistics March 2017

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The monthly bulletin of Association of Natural Rubber Producing Countries (ANRPC), Natural Rubber Trends & Statistics, March 2017 is now available for our subscribers. During the first quarter of 2017, ANRPC member countries are estimated to have produced 2.499 million tonnes of natural rubber (NR), up 2.0% from the same period a year ago. Consumption […]

The post ANRPC Releases Natural Rubber Trends & Statistics March 2017 appeared first on Global Rubber Markets.

Read the source article at Global Rubber Markets News

World rubber consumption up 1.8 % in 2016, says IRSG

The world total rubber consumption increased to 27.2 million tonnes in 2016 with a 1.8% increase on a year-over-year, driven by strong market activities in China, especially in Q4 2016, according to the latest statistics from the International Rubber Study Group(IRSG). The auto industry in China registered a rapid growth, with its sales and production both hitting new records in 2016, signalling a recovery from Chinese manufacturing recession.

Read the source article at Rubber Asia

Anxiety over availability hits rubber

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The price of rubber has fallen with the same speed at which it shot up last month in the international market. In 30 days, it has risen to ₹200 a kg and returned to ₹170.

This was triggered by anxiety over the availability of rubber in major rubber producing countries. Due to repeated floods in the southern provinces of Thailand at the end of last year and at beginning of this year, tapping could not be done for long periods . Along with this, the expectation that rubber demand from China would pick up in the new year has influenced futures trading in rubber.

There was also a widespread feeling that there could be a shortage in the global availability of rubber. In the futures market the impact was sudden. When the floods in Thailand gradually receded the anxiety about the non availability of rubber disappeared and the prices started falling.

Read the source article at Global Rubber Markets News

TOCOM rubber slips to 2-month low following Shanghai tumble

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TOKYO (March 8): Benchmark Tokyo rubber futures slipped to the lowest in more than two months on Wednesday as Shanghai futures continued to decline amid concerns over rising inventories in the world’s biggest rubber consumer.

“Tokyo rubber prices have apparently peaked out and are expected to decline further on a weakening Shanghai futures market,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Shanghai futures have been under pressure due to higher inventories and worries about slower growth in China’s economy, he added.

The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 11 yen, or 4.1%, lower at 258.4 yen (US$2.27) per kg, after hitting the lowest since Dec 30 of 257.6 yen earlier in the session.

 

 

The post TOCOM rubber slips to 2-month low following Shanghai tumble appeared first on Global Rubber Markets.

Read the source article at Global Rubber Markets News

Yokohama Rubber forecasts higher 2017 op profit despite soaring rubber prices

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Feb 20 Yokohama Rubber Co Ltd, Japan’s third-biggest tyre maker, on Monday forecast a 12 percent increase in 2017 operating profit despite soaring prices of natural rubber and other raw materials. Asia benchmark rubber futures on the Tokyo Commodity Exchange (TOCOM) hit their highest in more than five years late last month, boosted by Chinese […]

The post Yokohama Rubber forecasts higher 2017 op profit despite soaring rubber prices appeared first on Global Rubber Markets.

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Malaysia: Rubber Industry Not A Sunset Industry — Mah

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Malaysia’s rubber industry is not a sunset industry following demand for high-value engineering rubber products from many countries, says Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong. He said Malaysia has the ability to produce high-value engineering rubber products used specially in the field of vibration and earthquake engineering. Mah said Malaysian manufacturers had installed and supplied rubber seismic bearings to high-seismic activity countries like New Zealand, Iran, IndonesiaTurkey and China. “Our rubber products are of world standard, so the rubber industry is definitely not a sunset industry,” he told reporters after visiting the Doshin Rubber Products (M) Sdn Bhd factory here Monday.

Read the source article at Global Rubber Markets News

IRE 2017 Asia’s jumbo Show

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The 9th edition of India Rubber Expo, the premier international rubber event showcasing India’s rubber power to the world, is back in the south Indian metropolis of Chennai for a second time. Once again, this grand rubber show provides a great a global platform for the rubber industry players across the world, especially those hailing from the most happening Asian region, to come together, interact and exchange their ideas, display their most innovative products and services to the visitors. Major overseas rubber industry players and experts from Japan, China, Malaysia, Korea, the Netherlands, Germany and the US will converge at Chennai during the event, meet face to face with their Indian counterparts and discuss emerging market scenarios, technologies, alliances and other industry-related issues and explore opportunities to work together.

It is also a venue for the Indian players to get to know and imbibe the latest technological trends and happenings taking place in rubber world and make improvements in their own processes. IRE 2017 is particularly relevant in Asia where growth rates for the rubber markets are expected to be higher than any other region in the coming years. IRE is a clear indicator of India’s own position which is currently the fastest growing economy in the world pushing back China to the second slot.

Read the source article at Rubber Asia