Increasing Halo Butyl Rubber Prices in Europe Amid Weak Production Rates

In October 2024, the Halo Butyl Rubber market price movement inclined upward in Europe. The market players raised their quotations marginally by 1% amid the stressed availability of Halo Butyl Rubber supplies in the market due to weak production rates and moderate offtakes from buyers. The operating rates were low at Halo Butyl Rubber manufacturing units after the end of the regional summer holidays. October PMI survey data revealed a decline in euro area business activity for the second consecutive month, driven by weakening demand and falling new orders for the fifth month. Companies responded by cutting employment significantly, reaching the largest reduction in nearly four years, while business confidence hit an 11-month low. Input costs rose at their slowest pace since November 2020, with manufacturing output continuing its sharp decline, though at a slightly softened rate.

Amidst a shifting economic landscape, buyers cautiously made Halo Butyl Rubber purchases as the Consumer Price Index (CPI) for the Euro Area climbed 1.8% in September 2024, down from 2.2% in August. This uptick signifies a persistent upward trend in consumer prices, suggesting a moderating inflation environment. These dynamics could affect consumer purchasing power and influence upcoming monetary policy decisions. At the same time, the orders for Halo Butyl Rubber remained moderately low in downstream industries, primarily due to steady consumption levels of adhesives and sealants within the construction sector. Construction activity across Europe declined in all monitored countries and sectors, accompanied by reduced employment and purchasing activity. The latest Construction PMI survey revealed a notable downturn in eurozone construction by the end of the third quarter of 2024, marked by a sharp decrease in new orders since May. Despite improvements in supply chain performance and modest input cost pressures, future expectations remain bleak. The HCOB Eurozone Construction PMI Total Activity Index experienced a slight uptick, indicating a softer contraction but extending the decline in activity to 29 consecutive months across the three largest eurozone economies.

Conclusively, at the end of October 2024, Halo Butyl Rubber CIIR FOB Antwerp quotations in Europe witnessed USD 2920/MT.

As per the anticipation, the Halo Butyl Rubber prices would continue to increase in the European region. The demand for Halo Butyl Rubber elastomers is likely to improve from the automotive sector during the mid-quarter. Simultaneously, Halo Butyl Rubber production costs might increase due to an estimated escalation in feedstock Isobutylene costs amid the rise in upstream Crude Oil prices during winter. Furthermore, Halo Butyl Rubber stocking practices will increase from buyers before the peak winter.