In the global market, Neoprene Rubber prices saw a significant decline in October. This drop in the Neoprene Rubber price was primarily driven by a decrease in feedstock costs, especially butadiene, which showed no notable increase during this period. Meanwhile, downstream market demand remained stable without any major fluctuations. Weaker supplier actions, alongside falling freight charges and steady demand, collectively contributed to the overall reduction in Neoprene Rubber prices.

In October, Neoprene Rubber prices in the US market dropped to 7507 USD/MT CFR-Texas. This decline in the Neoprene Rubber price was largely due to reduced feedstock costs, particularly Butadiene, and lower sourcing prices from Japan. The price of Butadiene fell by 6.0% during the month. The US manufacturing sector faced its fourth consecutive monthly downturn in October, marked by weaker order books and rising inventory levels, hinting at potential production cuts if demand does not pick up. On the corporate front, DuPont reported a 4% increase in net sales, driven by a 3% rise in organic sales and a 2% boost from portfolio changes, though slightly offset by a 1% currency headwind. Operating EBITDA improved due to higher production rates, volume gains, and restructuring cost savings, despite pressures from increased variable compensation and targeted growth investments. However, softer demand and lower feedstock prices were key factors pulling down Neoprene Rubber prices.

From the downstream market In October US Automobile sales marked a increment of 12.8% from a month ago and a 9.6% increase from a year ago as given by the preliminary figures including the estimates for the GM/Stellantis/Tesla and other sales figures. But from the aerospace sector, Boeing reported a 1.5% decline in revenue compared to the same quarter last year, mainly due to the IAM work stoppage and earlier announced charges. The 787 program is currently manufacturing 4 units per month, with a target to increase to 5 units by the end of the year. The company delivered 116 aircraft and holds a backlog valued at $428 billion, equating to more than 5,400 planes.

In the Japanese market, Neoprene Rubber prices saw a significant decline in October. This drop in the Neoprene Rubber price was primarily due to supportive feedstock costs for Butadiene, along with limited activity from suppliers. Manufacturers reported positive performance figures, supported by strong demand from overseas markets like India and China. However, domestic demand, particularly from the automotive sector, remained weak. According to the Japan Light Motor Vehicle and Motorcycle Association, a total of 402,310 units were sold in October, reflecting an 8.3% decrease from the previous month but a 1.2% increase compared to the same period last year, which also influenced the domestic Neoprene Rubber market.

According to ChemAnalyst projections, Neoprene Rubber prices are expected to trend upward in the coming sessions. This bullish outlook of the Neoprene Rubber aligns with anticipated demand improvements from key economies such as China, the USA, and India. Furthermore, a potential increase in Butadiene feedstock prices is likely to raise production costs, contributing to the expected rise in Neoprene Rubber prices.