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Because of the surge in orders from tire manufacturers, the price of synthetic rubber in the world may rise significantly due to the rise in natural rubber prices that prompts tire manufacturers to search for cheaper alternative raw materials, synthetic rubber.
Due to tight supplies, natural rubber prices have climbed to a record of over US$3.50/kg (US$3,500/tonne, 2,590 EUR/tonne) as Thailand, the world’s largest natural rubber producer, is suffering from extreme dry weather.
At present, the price of synthetic rubber seems to be cheaper. At present, the price of synthetic rubber in Asia remains at the level of 2500-2850 USD/ton, market participants said. Natural rubber and synthetic rubber can be used as alternatives to each other, and prices are usually linked.
Rising natural rubber prices are putting further pressure on the tight supply of the synthetic rubber market, while the synthetic rubber market has recently been plagued by soaring raw material butadiene prices, industry sources said.
According to the price of ICIS, the price of butadiene in Asia rose by more than US$200/tonne in the past month to US$2,000-2,050/ton CFR Asia. "Natural rubber prices have risen sharply and synthetic rubber manufacturers have had to further increase product prices," said a Chinese styrene-butadiene rubber producer.
As the El Niño phenomenon caused continuous drought in parts of Asia, the price of natural rubber soared. According to the data from the Thai Rubber Research Institute, the price of the smoked plastic 3 (RSS3) in May in Asia was US$3.55/kg on Thursday, an increase of 75% year-on-year. Leading producers of synthetic rubber in Asia include Kumho Petrochemicals (KKPC) and LG Chemical. This week's styrene butadiene rubber (SBR) 1502 offer was increased by US$200-300/t to US$2,400-2,500/t CFR Asia, compared to the beginning of March. The price of butadiene rubber (BR) also rose to US$ 2,800-2,850/ton CFR Asia, with market participants saying.
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