I think that um right now we are at a decisionmaking point and very close to a recession and I'm worried about something worse than a recession if this isn't handled well. A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that's much more profound. We have a breaking down of the monetary order. we are going to change the monetary order because we cannot spend the amounts of money. So we have that problem and when we talk about the ...

Industry Overview - Demand for synthetic rubber in Western markets is declining due to a slowdown in automotive and tyre manufacturing, alongside increased global competition [1] - Global butadiene and synthetic rubber prices are experiencing a downward trend as a result of these market conditions [1] Price Trends - European butadiene contract price for December 2025 decreased to €720 per tonne ($837/t), down from €1,050 per tonne in March 2025, marking the ninth consecutive decline [2] - In the US, spot butadiene prices fell to $562 per tonne at the end of November 2025 [2] - In China, domestic butadiene prices averaged Yuan 7,021 per tonne ($988/t) in November, reflecting a 16% decrease from October and a 42% decline from January 2025 [2] - Global prices for Styrene-Butadiene Rubber (SBR) and Butadiene Rubber (BR) have also decreased in line with falling butadiene feedstock prices [2] Competitive Landscape - The synthetic rubber industry, particularly in the commodity segment, is facing intense competition from Chinese producers, which has negatively impacted profitability and led to plant closures [2] - Notable closures include Arlanxeo's Port Jerome facility in France and Lion Elastomers' facility in Texas, indicating a consolidation trend in Western synthetic rubber production [2] Demand Variability - Demand for advanced rubber grades remains strong, particularly supported by the automotive industry, while commodity rubber grades are experiencing sluggish demand [3] Trade Dynamics - In Europe, extra-regional EU27+UK SSBR exports increased by 30% in the first three quarters of 2025, driven by a 49% rise in shipments to China [4] - Conversely, extra-regional EU27+UK ESBR exports fell by 10% year-on-year, primarily due to significant losses to India [4] - Lower butadiene prices in Asia, combined with soft demand and uncertainty related to US tariffs, have made ESBR production in Asia more competitive, leading to reduced European exports [4] - China's synthetic rubber production is growing to meet higher demand from the automotive and tyre industries, resulting in increased exports to the ASEAN region [4]