SINGAPORE (ICIS)--Acrylonitrile butadiene rubber (NBR) prices in southeast Asia are expected to soften in September due to sluggish demand.
Spot offers for September shipments at $2,550/tonne CFR (cost and freight) southeast (SE) Asia drew little interest, with traders and importers adopting a cautious stance on the market.
“The market is uncertain and buying sentiment is weak, given the depreciation of the local currencies against the US dollar,” a supplier said.
Local currencies in the region such as the Indonesian rupiah, Malaysian ringgit and Vietnamese dong had depreciated against the US dollar.
In light of their depreciated currencies, buyers had retreated, held back purchases and were unwilling to lock in any large spot volumes.
The uncertain market outlook amid the ongoing US-China trade war tensions had also weighed on demand.
“Buyers are cautious; keep lean inventories; and buy hand-to-mouth because of the market uncertainty,” a trader said.
NBR prices were assessed flat at $2,500-2,550/tonne CFR SE Asia on 30 August, ICIS data showed.
Picture: Acrylonitrile butadiene rubber (NBR) can be used in making cleaning gloves. (Source: REX/Shutterstock)