NBR industry newsletter
Nitrile Butadiene Rubber
In this issue
- NBR Prices and 2021 Forecast
- Is China finally delivering quality NBR?
- NBR Global Capacities
- Global Snapshot
NBR Prices and 2021 Forecast
The start of the pandemic and rise in coronavirus cases have led to a surge in the demand for nitrile butadiene rubber (NBR) latex; prices peaked toward the last quarter of 2020, ranging as high as US$4500 to US$5500 per metric tonne. The beginning of the new year 2021 have however seen a considerable fall in prices, with new NBR factories coming onstream, and existing factories expanding their facilities to increase supply.
The market trend is projecting that NBR prices are expected to return to, or close to, pre-pandemic levels in the fourth quarter of 2021. Price projections as low as US$1700 to US$2100 are likely as we move toward the latter part of the year. To keep up to date with NBR prices, contact us at [email protected].
Is China finally delivering quality NBR?
Many NBR petrochemical factories in China have invested heavily in increasing capacities and converting facilities, as they look for long-term clients. Those that are serious about gaining a foothold in the NBR market, and taking market share from incumbent suppliers such as Synthomer, LG, Khumo and Nantex, have embraced a Continuous Quality Improvement (CQI) process. They know that in order to win long-term clients, it is in their best interest to deliver a quality NBR product.
For Chinese factories that have embraced a CQI process, we are now seeing the positive results. The quality of NBR from a few forward-thinking Chinese factories has improved greatly over the last 12 months. This NBR is now being used exclusively by our client factories in Malaysia, without the need to mix it with other NBR supplies. The gloves are being supplied to the USA, EU and UK markets. We work with some of the most prominent NBR producers in China and are now supplying some of the world’s leading glove manufacturers.
Care must be taken to select the correct Chinese NBR factory, to ensure a top quality NBR. Our company, UK-China Trading is a procurement specialist in the NBR and personal protective equipment (PPE) supply chain sector. We work with various governments supplying PPE and associated products, and NBR to medium sized glove producers in an effort to support Malaysian and Thai factories with high quality NBR supply. Our partner NBR factory in China has embraced the CQI process and its NBR is being used exclusively by our clients. We will work with you to provide the best NBR solutions, at highly competitive prices.
If you would like to get a sample of this quality NBR for lab testing, and pricing for the months ahead, please contact us at [email protected]. A COA, TDS, MSDS/SDS will be provided.
NBR Global Capacities
From the start of the pandemic, and coming into the new year 2021, the NBR market has seen a huge strain on its supply and demand. The bigger glove manufacturers have on-going supply contracts with the large NBR suppliers, however there is generally no additional availability of NBR from traditional suppliers until 2022 to meet the market demand.
The market is highly capital intensive in nature which acts as a major barrier for the entry of new players in the market. This is where Chinese petrochemical companies have used cheap Chinese capital and invested heavily to increase their NBR production facilities capacity to meet the supply needs of glove manufacturers in Malaysia, China, Thailand, India, Indonesia and Vietnam.
Plans of opening new factories in Malaysia, Thailand, Vietnam, Taiwan, Indonesia, India, Sri Lanka, and Russia, are still limited. Chinese suppliers have access to cheap capital to invest in new production facilities and have also converted existing facilities to match the rising demand for NBR. Moreover, Chinese manufacturers are engaging most effective manufacturing systems that can respond to clients faster and more effectively, in order to meet changing demands and conditions.
To get details of existing NBR capacities contact us at [email protected]
Global Snapshot
The COVID-19 pandemic and global spread of the coronavirus has substantially increased the demand for Nitrile Butadiene Rubber (NBR). Globally, the market size for nitrile butadiene rubber (NBR) latex was overwhelmingly valued at US$ 1.39 billion in 2019, and is projected to reach US$2.50 billion by 2027, with an annual growth of 7.6% between 2020 and 2027. Gloves are expected to be the fastest growing product category in the global NBR market by the end of 2025.
Due to the rise in demand for PPE over the last year, escalating capacity expansions is likely amongst Asia Pacific manufacturers, namely Malaysia, Thailand, and China, given the large increases in global healthcare expenditures. North America and Europe are also renowned markets for NBR latex due to their substantial government budget allocation in healthcare, and manufacturing industries. Moreover, the global use of gloves in other industries such as food, sports, and chemical, will further funnel demand for NBR latex.
To keep up to date with the NBR market contact us at [email protected] or Cell/WhatsApp: +44 7944 920 795.