In recent years the markets for synthetic latex feedstocks have been experiencing significant transitions and volatility. Fundamental shifts in the ethylene markets are being felt well down the value chain as co-product production decreases.
This volatility has been outside the sphere of influence of the synthetic latex producer, yet it plays a major factor in the industry’s success. Macro trends in the near term future can be highlighted as:
●Global economic conditions are improving, but not at a rapid pace.
years, leading to a marginally lower price outlook.
● Ethylene markets are driven by feedstock cost trends.
● Supply side on purpose propylene drivers will define the market in the medium
● Butadiene markets are currently quite long, but a more typical market balance
with supply concerns will return.
● Styrene markets will be attractive to producers with feedstock advantages.