In the concluding month of 2023, the producers decreased the Isobutylene quotations marginally by 1.4% amid improved availability of stocks and a decline in offtakes from the buyers. Market sources indicated that the USA manufacturing sector Purchasing Manager's Index decreased again in December 2023 and remained below 50 points amidst a deacceleration in new orders from the buyers and a consequent decline in the industrial production rates. The supply rates were stable in the regional market. Furthermore, the heavy rainfall in the region increased the water levels of the Panama Canal and shipping activities. Consequently, Isobutylene inventory levels rose in the domestic market amid a decline in purchasing activities from the market. At the same time, the orders for Isobutylene were sluggish from the MTBE producers throughout the month due to depressed demand and reduced trading activities in the country.

Meanwhile, the Isobutylene market sentiments showcased some improvement from the Butyl Rubber industries towards the end of the month amid tight availability of supplies in the market and increased consumption in the Automotive sector. Furthermore, the feedstock Ethylene prices decreased during the month because of increased inventories amid sluggish offtakes from downstream industries. It negatively impacted the production costs of Isobutylene.

Concurrently, the suppliers decreased the Isobutylene quotations by 1.8% in the European market. The market did not showcase any significant improvement in inquiries amid the ongoing economic slowdown in the region. The orders were sluggish from the MTBE producers, especially in the second half of the month, due to depressed demand from the Pharma sector in the country. Meanwhile, the market sentiments showcased some improvement from the Butyl Rubber industries towards the end of the month amid tight availability of Isobutylene supplies in the market and increased consumption in the Automotive sector after Tesla's announcement that the company is going to compensate for the withdrawn subsidies by the European Government on EV vehicles.

At the same time, the feedstock Ethylene prices decreased during the month because of increased inventories amid sluggish offtakes from downstream industries and moderation in upstream Crude Oil availability after a rise in supply chain concerns through the Suez Canal after the Red Sea attacks in the Middle East region. It negatively impacted the production costs of Isobutylene.

At the end of 2023, the Isobutylene FD Texas and FD Hamburg quotations in the US and Germany witnessed USD 1124/MT and USD 1155/MT, respectively.

As per the estimation, the Isobutylene prices will increase in the international markets during the first quarter of 2023 due to a surge in cost support and weak production rates during winter. The delay in supply rates due to decreased labour activities amid the New Year holidays and the spike in the logistics costs will impact the Isobutylene availability in the market. Meanwhile, offtakes will remain moderate from the downstream industries.