RubberMove 2024: Synthetic rubber prices 'on an upward path'

Davao – Synthetic rubber (SR) prices are set to enter a phase of “modest gains”, with demand recovery in key maker sectors expected to offset the impact of overcapacity for some materials.

That’s according to a report from the recent RubberMove 2024 international rubber conference in the Philippines, organised by Xida Communications and the Philippines Rubber Industries Association.

The synthetic rubber industry produces a diverse range of products, including those based on butadiene (BR), styrene-butadiene (SBR), acrylonitrile-butadiene (NBR) and EPDM, said the report supplied by Xida Communications.

Global synthetic rubber capacity for 2024, it noted, is estimated at 22,094 kilotonnes (kt), mostly based in China with 32%, followed by: rest of Asia, 26%; EMEA, 15%; North America, 14%; Russia, 9%.

Demand for SR – which is closely linked to the automotive industry, especially tire manufacturing – has “recovered post-pandemic, with steady demand across regions,” said the report.

Prices have generally shown variability with overcapacity in some segments, such as emulsion (ESBR), though customers of other SR materials are facing supply constraints.

Among the highest-volume materials, BR prices have been relatively stable but are expected to rise due to increasing demand from the automotive sector.

Solution SBR prices are forecast to rise “as demand improves post-pandemic, while efforts to balance supply could lead to moderate price increases for ESBR.”

Meanwhile, NBR prices have been stable with steady demand, particularly from the medical sector, continued the report based on presentations at the Philippines rubber conference.

Overall, the report predicted SR prices to show “moderate increases as the market adjusts to post-pandemic demand and regulatory pressures on environmental sustainability.”

Delegates to RubberMove 2024 were also briefed on the challenges facing SR producers, including increasing regulations related to environmental impact and sustainability and fluctuating raw materials prices and production costs.

In terms of technology, manufacturers were said to face technical barriers when it came to the introduction of recycled and bio-based synthetic rubber materials.

On the other hand, opportunities were reported around sustainability certifications and the development to high-performance, sustainable synthetic rubber products, including for medical devices and construction materials.