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NR price development and reclaim costs benefits

Market developments - 13-12-2019

One of the key drivers of sustainability thinking and the usage of recycled material are the costs. The higher the price level of the virgin material, in this case Natural Rubber, the higher the usage of NR reclaim, the higher the costs-savings.

The graph of the monthly published average price of the NR grade SMR20, as monitored by us for the last 15 years shows the price fluctuations; economic booms and the global crises are clearly visible.

As with many commodities the price of NR is difficult to predict. The price factors involved are divers. To mention a few:

  • the oil price, the main driver for Synthetic Rubber
  • USD exchange rate
  • global demand
  • NR production

The price of NR-reclaim however only depends of the manufacturing source and the destination. The key elements are the availability of the right raw-material (waste) and local circumstances. Like prices of the local tax, energy- and labour costs. These are much more stable and easier to foreseen.

The costs benefits are not only the polymer price advantages. Among other elements it is important to know how much substitution material is needed to have the same polymer content in your compound and consequently the same, or sometimes even better, mechanical properties as when the compound was manufactured only with virgin rubber.

The usage of rubber reclaim is in most cases by far more beneficial than without reclaim especially when the total compound costs and benefits are considered. Even in the current market of relatively low virgin NR prices. Please contact us to calculate your costs advantage.