As December Proceeds, European Neoprene Rubber Prices Continue to Decline

Hamburg, Germany: The price of Neoprene Rubber declined in the European market during November 2022, and the market trend has been moving in the same direction as December 2022 proceeds. Due to two major factors, namely lowering natural gas prices and the sluggish downstream demand, Neoprene Rubber costs have significantly decreased. Neoprene Rubber prices assembled at USD 4890/MT FOB Hamburg during November 2022, which showcased a drastic decline of 7.7% within a month. Not that Neoprene Rubber has been an exception; recently, the costs of numerous elastomers have been sharply declining.

The downstream automobile and construction industries' demand for Neoprene Rubber fell along with their sales in fear of recession. Since European Natural Gas reserves are fully stocked, the plentiful natural gas supply has also contributed to market stabilization and price reduction. Prices for specific elastomers have been perceived to be declining because Europe is avoiding a catastrophic energy crisis and preserving a balanced natural gas market.

Additionally, because fewer yards are occupied and fewer port congestions, supply chains run smoothly, ensuring a steady flow of materials into the market. Consequently, the already available inventories can now fulfill any demand from the downstream industries. In conclusion, several factors, such as decreased demand, falling natural gas prices, and the resolution of supply chain issues, are to blame for the dropping market value of Neoprene Rubber in the European market.

According to ChemAnalyst anticipations, "It is estimated that in the next weeks, declining natural gas prices and poor market sentiments would cause the price of Neoprene Rubber to continue declining. Additionally, as December is a month of destocking, producers are willing to sell their products for a lower price, ultimately driving down the price of Neoprene Rubber in the coming weeks. In addition, demand is expected to decline even further as the holiday season approaches."