For the Quarter Ending December 2024
North America
In Q4 2024, the North American automotive tire raw material market exhibited mixed pricing trends, with certain commodities witnessing price increases due to supply constraints and rising feedstock costs, while others faced bearish conditions amid weakening demand and ample inventory levels.
Polybutadiene Rubber (PBR) prices rose by 2.65% quarter-on-quarter, supported by stable automotive and tire sector demand, despite a brief decline in early January. Halo Butyl Rubber (HBR) saw a 1% increase, driven by strong tire manufacturing demand and stable Isobutylene supply. Insoluble Sulphur prices fluctuated but remained elevated, reflecting higher Sulphur costs earlier in the quarter before stabilizing in December. Zinc Oxide experienced modest price growth, supported by steady rubber industry demand and increasing Zinc Ingot costs. Carbon Black (N220) prices trended bullishly, largely due to supply disruptions from refinery shutdowns and port strikes, despite softer demand in some sectors. EPDM Rubber edged up by 0.87%, benefiting from stable supply and moderate demand recovery. Stearic Acid recorded the sharpest rise, surging 8% quarter-on-quarter, driven by a 10% increase in palm oil prices and rising freight costs.
However, other key tire raw materials experienced downward price trends due to weak demand, excess inventory, and lower feedstock costs. Styrene-Butadiene Rubber (SBR) prices declined, influenced by falling Butadiene costs despite stable tire sector demand. Para-Phenylene Diamine (PPD) remained bearish, facing weak consumption, oversupply, and declining feedstock prices. Nylon Tire Yarn (NTY) prices remained under slight pressure, impacted by seasonal slowdowns in tire production and stable supply levels. Steel Wire Rod prices fell by 1%, as oversupply and sluggish end-use demand created downward pricing pressure. While strong EV adoption and tire sector resilience provided some support, weaker demand in select segments tempered overall market momentum heading into early 2025.
APAC
In Q4 2024, the APAC region's market for automotive tire raw materials displayed mixed trends, influenced by a combination of factors such as demand fluctuations, supply-side constraints, and feedstock price dynamics. The Styrene-Butadiene Rubber (SBR) market faced a downward trend, with prices declining due to weaker demand, particularly from the automotive and tire sectors. This decline was exacerbated by lower feedstock costs, including a drop in Butadiene prices, and a sluggish market environment. In contrast, the Polybutadiene Rubber (PBR) market in China saw a modest increase in prices, driven by stable butadiene pricing, steady production rates, and firm demand from automotive and tire manufacturing, which continued to support the market. Similarly, the Zinc Oxide market showed resilience, with a moderate price increase driven by steady demand from key industries, particularly rubber, and the strong position of the Indian market.
On the other hand, markets like Para-Phenylene Diamine (PPD) and Nylon Tire Yarn (NTY) exhibited bearish trends, with weak demand, high inventory levels, and economic challenges placing downward pressure on prices. While the Carbon Black N220 market experienced an initial bullish phase, rising butadiene rubber prices and strong demand from NEVs contributed to upward price pressure, followed by a softening towards the end of the quarter due to lower global tire demand. The Stearic Acid market saw upward price pressure, primarily due to rising palm oil prices in Southeast Asia and supply chain disruptions. However, in other segments, such as the Steel Wire Rod market, prices decreased due to oversupply, reduced demand, and rising input costs.
In general, while certain segments like PBR and Zinc Oxide experienced positive growth, the overall outlook for the tire raw material market in APAC remained subdued, with a cautious market sentiment and mixed demand trends across various sectors.
Europe
In Q4 2024, the European automotive tire raw material market exhibited mixed price trends, influenced by fluctuating demand, feedstock costs, and supply chain dynamics. Prices of Styrene-Butadiene Rubber (SBR) and Stearic Acid saw an upward trajectory, driven by rising feedstock costs and constrained supply. SBR prices increased steadily due to higher butadiene and styrene costs, alongside growing demand from the recovering automotive sector, particularly for electric vehicle (EV) tires. Similarly, Stearic Acid prices surged by 6% compared to Q3, primarily due to elevated palm oil costs and supply limitations in Southeast Asia.
In contrast, Polybutadiene Rubber (PBR), Nylon Tire Yarn (NTY), and Carbon Black N220 faced a downward trend due to weaker demand and external market pressures. PBR prices in Germany declined by 1.51% because of subdued tire sector performance and moderate demand, despite stable supply conditions. NTY prices also experienced slight downward pressure, reflecting seasonal trends and weak consumer spending in the latter half of the quarter. Additionally, Carbon Black N220 prices dropped due to an influx of cheaper imports from India, higher domestic stock levels, and declining coal tar prices.
These contrasting trends highlight the complex market environment, where some raw materials saw price support from supply constraints and feedstock inflation, while others faced bearish conditions due to demand-side weaknesses and increased competition from imports.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American automotive raw materials market exhibited a blend of trends, with price movements reflecting varying market dynamics across commodities. Several materials, including Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Insoluble Sulphur, Zinc Oxide, and Para Phenylene Diamine (PPD), witnessed significant price increases due to strong demand, supply chain disruptions, and rising feedstock costs. SBR prices surged 14% year-on-year, fueled by demand from the automotive and electronics sectors, while PBR experienced a 12.4% quarterly rise due to robust demand and tight supply conditions. Similarly, Insoluble Sulphur and Zinc Oxide saw bullish trends driven by supply shortages and downstream demand, while PPD prices increased amid logistical challenges and heightened consumption.
Conversely, materials like Nylon Tire Yarn (NTY), Steel Wire Rod, and Carbon Black experienced bearish trends. NTY faced downward pressure from oversupply and seasonal disruptions, while Steel Wire Rod prices fell amid oversupply and subdued demand. Carbon Black saw a 4.5% quarterly decline, driven by reduced automotive demand and increased competition from imports.
Other materials displayed stability, such as Silica, which maintained balanced supply-demand dynamics with minimal price changes. Halo Butyl Rubber experienced moderate price growth, supported by steady demand and constrained supply.
Overall, Q3 2024 highlighted mixed price performances across the North American automotive raw materials market, with bullish trends for some materials countered by bearish or stable conditions for others.
APAC
During Q3 2024, the pricing trends of automotive raw materials in the APAC region presented a mixed picture, shaped by diverse market dynamics. While stability was a recurring theme for materials like Styrene Butadiene Rubber (SBR) and Silica, others such as Halo Butyl Rubber (HBR), Insoluble Sulphur, Polybutadiene Rubber (PBR), and Zinc Oxide experienced notable price increases. These surges were often driven by supply chain disruptions, rising feedstock costs, and sustained demand from key sectors.
In contrast, materials like Nylon Tire Yarn (NTY) and Steel Wire Rod saw declining prices, primarily due to oversupply, weakened demand, and seasonal market fluctuations. Carbon Black showcased a nuanced trend, with initial price deflation in some regions counterbalanced by a bullish rally later in the quarter due to plant outages and festive-driven demand.
Regional variations were significant; for instance, China played a pivotal role in shaping the trends for Silica, Para Phenylene Diamine (PPD), and Zinc Oxide, with economic and weather-related factors influencing outcomes. Similarly, Japan's market dynamics heavily impacted SBR and PBR pricing. Overall, the quarter highlighted the complex interplay of regional conditions, supply-demand imbalances, and macroeconomic factors in shaping the pricing environment for automotive raw materials.
Europe
In Q3 2024, the European automotive raw materials market exhibited mixed price trends across various products, shaped by distinct supply-demand dynamics and regional economic conditions. Styrene Butadiene Rubber (SBR) saw a notable price surge, with an 11% quarterly increase driven by higher feedstock costs, supply chain disruptions, and robust demand. Conversely, Polybutadiene Rubber (PBR) experienced a sharp decline, largely due to oversupply and weak downstream tire sector demand, particularly in France, where prices dropped significantly. Nylon Tire Yarn (NTY) also faced a bearish quarter, influenced by oversupply, seasonal demand fluctuations, and global supply chain disruptions.
Halo Butyl Rubber (HBR) followed an upward trend, buoyed by stable automotive sector demand despite weak Eurozone manufacturing and labor shortages during the summer. Similarly, Insoluble Sulphur prices rose due to limited supply from refinery outages, even as European car sales slumped. Steel Wire Rod and Carbon Black, however, faced downward pressure, reflecting weak construction sector demand and reduced car sales, with bearish sentiment dominating their markets.
Zinc Oxide prices climbed due to supply constraints and steady demand from the rubber and coatings industries. Silica saw consistent price declines amid a struggling construction sector, especially in Germany. Para-Phenylene Diamine (PPD) prices rose sharply, supported by strong automotive and tire sector demand despite feedstock cost reductions and supply chain challenges. Overall, the quarter reflected diverse market dynamics, with materials linked to robust demand and constrained supply witnessing price increases, while those tied to weaker sectors saw declines.
