Increase in US Halo Butyl Rubber Prices Amid Robust Demand

The Halo Butyl Rubber price trend showcased bullish movement at the beginning of Q3 of 2024, and producers raised the quotations by 1.6% during the month. The consumption of Halo Butyl Rubber remained firm for the manufacturing of construction materials. The demand for Halo Butyl Rubber to produce adhesive and sealants was consistent due to firm consumption from downstream construction and manufacturing sectors. Prefabrication and modular construction are increasingly becoming prominent in the construction industry. These methods involve constructing 60-90% of a building or its components in a factory setting before transporting them to the site for assembly. It contributed to the firm consumption of materials.

Meanwhile, the manufacturing rates decreased at the beginning of the third quarter of 2024 due to the occurrence of Hurricane Beryl, and manufacturing PMI fell below 50, indicating a deterioration in manufacturing activities during July 2024. Consequently, the availability of Halo Butyl Rubber supplies was insufficient to cater to the market demand, while the offtakes remained consistent from the market. Simultaneously, supply rates were low to importers, and US exports declined during the month. Additionally, in response to ongoing concerns about equipment availability, the Federal Maritime Commission (FMC) has introduced a new rule under the Ocean Shipping Reform Act designed to protect US exporters. The regulation tackles the concern that carriers might prioritize the rapid return of empty containers to the Far East for future voyages instead of making these containers available to US exporters.

Furthermore, during the middle of the month, the cost support on the production costs of Halo Butyl Rubber varied due to changes in the production costs of feedstock Isobutylene, influenced by the fluctuations in upstream WTI crude oil prices. Towards the end of the month, the Halo Butyl Rubber prices were unchanged by the market players as the cost support declined due to the decrease in upstream Crude Oil prices, driven by reduced transportation activities and decreased fuel consumption during hurricane season in the region. Conclusively, at the end of July 2024, Halo Butyl Rubber BIIR FOB Texas prices settled at USD 2490/MT, according to the ChemAnalyst data sources.

As per the estimation, the Halo Butyl Rubber prices might increase further in the upcoming weeks in the North American region. The production costs of Halo Butyl Rubber might increase due to affliction in production rates amid insufficient availability of feedstock Isobutylene supplies due to low operating rates at manufacturing units. Simultaneously, the demand for Halo Butyl Rubber is anticipated to increase from the Automotive manufacturers due to the expected increase in demand for automobiles in the international market.