April 2024, Weaker Consumption of HNBR leads the Prices to Fall in the US

In April 2024, the US market saw a decrease in the price of Hydrogenated Nitrile Butadiene Rubber (HNBR), primarily due to lower demand from key sectors like Automobile and Aerospace. Major producers lowered prices in response to this reduced demand, contributing to the overall HNBR price decline. Despite a surge in the prices of Acrylonitrile and Butadiene in the feedstock market, this increase did not significantly impact the HNBR price. These factors collectively influenced the downward movement of HNBR prices in April, reflecting the current market dynamics and demand-supply balance.

In the US market, HNBR prices have declined this month, influenced by various factors in the automotive and aerospace sectors. In the downstream market, automotive sector marked 8.4% decrease in the number of sales compared to March and a 1.8% decrease compared to April 2023. This decline in sales reflects challenges within the manufacturing sector, which experienced a decrease in new orders for the first time in 2024. Similarly, the aerospace market faced challenges, with Boeing reporting efforts to enhance quality and safety in its commercial business. Lower deliveries of the 737 and issues with the 737-9 impacted financial results. However, the total company backlog increased to $529 billion, inclusive of 5,600 commercial airplanes. Revenue and operating margin in the Commercial Airplanes segment primarily reflected the challenges with 737 deliveries and the 737-9. Overall, the decline in the downstream market, particularly in automotive and aerospace, influenced the decrease in HNBR prices this month.

According to the Xeneta shipping index, US Imports underwent a notable decline in April, with the XSI plummeting by 9.4% to 150.6 points. This represents a substantial 67% decrease compared to April of the previous year, when it stood at 451.5 points. It's noteworthy that this is the lowest point the index has reached since April 2021. Given that many US shippers operate on one-year contracts from May 1st to April 30th, significant fluctuations in the index between April and May are typical.

As per the ChemAnalyst anticipation the price of the HNBR is expected to showcase bearish trend in the upcoming month. This anticipation in the HNBR price is majorly attributed to the market condition of witnessing sufficient material availabilities. With respect to the current market condition the market participants are lower involved in the HNBR inventories accumulations. These factors will paly a pivotal role in influencing the pricing dynamics of HNBR in the US market.