Strong market demand and supplier actions propelled Hydrogenated Nitrile Butadiene Rubber prices

The Hydrogenated Nitrile Butadiene Rubber (HNBR) experienced a significant surge in price in US market in February 2024. This rise in the HNBR price was primarily attributed to the increase in the price of major feedstocks, particularly Acrylonitrile and Butadiene. With an overall positive economic growth in effect and an anticipation of its positive continuity, suppliers were continuously engaged in inventory accumulation, ultimately resulting in an increase in the HNBR price in the market.

In the US market, HNBR prices experienced a significant increase, reaching 35810 USD/MT FOB-Texas, reflecting a notable increment of 1.90% in February. This rise was primarily attributed to the upward movement in the prices of major feedstocks, particularly Acrylonitrile and Butadiene. The recent surge in crude oil prices had a substantial impact on overall feedstock costs, shaping the pricing dynamics of HNBR. Despite these price dynamics, the downstream Automobile market in the US exhibited resilience, with Light Vehicle (LV) sales registering a robust year-on-year growth of 9.2% and 16.36% growth month-on-month in February, totaling 1.25 million units. This growth trend persisted for 19 consecutive months, fueled by favorable market conditions and additional selling days compared to the previous year. In the Aerospace sector, Boeing's success in securing a substantial order from Thai Airways for 45 of its 787-9 Dreamliner jets made a notable contribution to Boeing's commercial delivery figures. Additionally, American Airlines' significant order for 260 new narrow-body jets, including Boeing's 737 Max 10, reflected confidence in Boeing's capabilities, despite existing production challenges. The Manufacturing Purchasing Managers' Index (PMI) witnessed a notable upswing in February, indicating positivity in overall industrial activities. This uptick contributed to increased demand for various commodities from their respective sectors, influencing the broader economic landscape.

The demand for HNBR was on an upward trajectory, notably driven by positive growth in the domestic downstream Automobile and Aerospace sectors. Despite lower demand observed in the Automobile sector in Brazil, the Mexican market reported moderate demand, and the Canadian market showcased robust demand for HNBR. These international market dynamics, coupled with varying patterns in demand, played a pivotal role in driving the overall demand for HNBR.

According to ChemAnalyst's anticipation, the price of HNBR is expected to showcase a bullish trend in the upcoming sessions. This anticipation is particularly based upon the expectation of an increase in the price of the feedstock ultimately affecting the production cost. An increase in the freight charges across the various routes along with the supplier’s activeness in the inventories accumulation will be the key factor which will drive the price of the HNBR in the upcoming sessions.