FRIEDRICHSHAFEN, Germany—Despite having had a good year in 2018, Kraiburg TPE GmbH & Co. K.G. sees uncertainties in the market, according to the company's CEO Franz Hinterecker.
"This goes back to the trade war between the U.S. and China and the new WLTP emissions regulations in Europe, Hinterecker said at the Fakuma expo, which runs through Oct. 20 in Friedrichshafen.
As of September, auto makers in the European Union have to undergo the worldwide harmonized light vehicle test procedure (WLTP) to measure fuel consumption and car emissions.
"It is difficult to speculate at the moment, but our forecast for the year ahead will depend on how the next couple of months develop," Hinterecker said.
He noted that butadiene prices have seen two spikes throughout the past 10 months, one occurred at the start of the year and the other happened more recently. Both were related to oil prices, he said.
"This is really a big issue. And there is also market tightness for butadiene, too," Hinterecker said, crediting the market tightening to the increased demand in China.
"At the moment," he concluded, "the market is very unpredictable and we're watching it closely."