In May, the rubber and plastic market experienced a general upward trend, with some improvement in the supply-demand imbalance compared to the previous month. Analysts suggest that the market performed better than in April, mainly driven by rising production costs and tighter supply conditions. However, demand has not seen any significant improvement, and it is expected that the market will remain relatively stable in June, with limited room for further growth.
According to the latest data, 11 out of the monitored products in the rubber and plastics sector saw price increases in May, representing 5% of the total. Among them, one product recorded a rise of over 5%. The top three were butyl rubber 1751 (up 6.77%), LDPE (up 4.02%), and HDPE (up 2.93%). On the other hand, six products faced price declines, with POM dropping the most at -3.91%, followed by nitrile rubber N41 (-3.03%) and butadiene rubber (-2.35%).
Looking at the supply and demand dynamics, the general plastics segment showed improved balance. Since April, an increase in petrochemical plant maintenance has reduced production capacity, leading to declining inventories. This trend continued into May, with certain products like polyethylene and polystyrene experiencing shortages. Limited production combined with price support helped stabilize the market.
However, the supply-demand gap remains tight for synthetic and natural rubber. Natural rubber, in particular, is still in the process of de-stocking, and the introduction of new plastic products has added pressure to the market. Meanwhile, the downstream tire industry remains sluggish, with many manufacturers reducing output and offering promotions to clear inventory. These factors continue to weigh on the overall performance of the rubber and plastics market.
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