NBR Latex Price May Move Downwards amid Bearish Factors

Both the supply and demand were weak in the NBR latex market. The EXW price of butadiene was at a high level, but the buying sentiment was dampened. Thus, market offers for butadiene slipped. Downstream rubber latex customers mainly maintained procurements based on the standing demand. As a result, the NBR latex may fluctuate downwards.

From June, the trading atmosphere in the NBR latex market turned soft, which was resulted from the sluggish demand and the decline in feedstock price. The market prices of NBR latex in the domestic market were about RMB 7,200-7,400/mt, and the USD offers were about $1,000/mt.

The butadiene price fluctuated, the acrylonitrile market was still supported by the limited supply. By June 11, the price of acrylonitrile dropped to RMB 13,500-13,700/mt. The cost support to the NBR latex market softened, so the NBR latex producers stayed on the sidelines.

The NBR latex and downstream producers slowed down the production. In June, the NBR latex producers ran the unit stably, and they only arranged production according to the orders. Affected by the theoretical slack season for the rubber gloves industry, sales were not good. Downstream plants conducted maintenance successively. Besides, the Sino-U.S disputes lifted the tariff rate, which dampened the export profit of some downstream producers.

In the short run, the NBR latex market may move sideways and gradually inch down. The cost support is not strong, and the external policy is unstable. In addition, it is the slack season for the downstream production. Therefore, the market price of NBR latex may inch down in the short run.