Market Report: Chloroprene rubber prices see sudden hikes by suppliers

London – A number of major suppliers have announced an increase in their chloroprene rubber (CR) prices within the month of November.

German manufacturer Arlanxeo was the latest to join the list, announcing 9 Nov that it was going to raise its prices for chloroprene rubber and chloroprene adhesive grades in Europe, Middle East, Africa, Latin America and Asia.

Product prices will increase $230/tonne, or €200/tonne, effective 25 Nov, announced Arlanxeo, explaining that the increase was due to overall market and cost developments of the past months.

Arlanxeo distributes CR under the brand name Baypren and has production capacity of 60 kilotonnes per annum (ktpa) for the polymer.

A day earlier, Japanese supplier Showa Denko announced that it, too, had decided to increase its price in European and Asian markets from shipments departing from Japan from 16 Nov.

“We have avoided raising our prices for as long as possible, but we can no longer prolong the inevitable,” said the Showa Denko announcement.

The price will be increased by $430/tonne for US-dollar-based transactions, or by €380/tonne for euro-based transactions.

On 1 Nov, another Japanese supplier Tosoh Corp. announced that it was increasing prices for exported chloroprene rubber sold under the Skyprene brand name.

The “general” increase will see prices rise by $400 and €360 a tonne from 1 Jan, 2017, according to the Tosoh statement.

Tosoh said that over recent years it had strived to offset or absorb costs and that the export price rise was “necessary so as to ensure ability to stably supply [CR].”

The company statement went on to ask for customers’ understanding regarding the increase.

Tosoh has a chloroprene rubber capacity of around 34 kilotonnes per annum, said Masayuki Kitani, business development & sales manager, Tosoh Europe BV said in reply to ERJ’s enquiry.

CR products are used in applications like cable sheathings, hoses, belts and air springs as well as adhesives.