For the Quarter Ending September 2024
North America
The Butyl Rubber pricing landscape in North America during Q3 2024 witnessed a significant uptrend, marked by increasing market prices driven by a confluence of factors. The market dynamics showcased bullishness despite the declining production cost of the commodity due to the decrease in the prices of the feedstock, Isobutylene. The heightened costs of the commodity, despite typical downward pressures from falling production expenses, were counterbalanced by robust demand from key industries, notably the automotive sector.
The surge in demand from downstream players led to a tightening supply situation, further propelling prices upwards. In the USA specifically, the market experienced the most substantial price changes, with a notable -3% decrease from the previous quarter. The correlation between increased demand and rising prices was evident throughout the quarter, reflecting a positive pricing environment.
Despite disruptions like the first Atlantic hurricane and cyberattacks affecting operations, the market remained resilient. The quarter concluded with Butyl Rubber MV 32-51 prices at USD 2150/MT DEL Texas, underscoring the overall bullish trend in pricing.
APAC
In Q3 2024, the Butyl Rubber market in the APAC region remained stable, with prices showing minimal fluctuations. Various factors influenced market prices during this quarter, including consistent demand from downstream sectors, and balanced supply levels. Notable disruptions occurred in the supply chain due to unforeseen events, such as severe weather conditions which briefly impacted market dynamics. However, overall, the market maintained its equilibrium, supported by steady demand from key industries. Singapore, in particular, witnessed the most significant price changes in the region. Despite this, the market trend remained stable, reflecting a resilient pricing environment. Seasonal factors and correlation patterns played a crucial role in price stability, ensuring that the market maintained a positive sentiment throughout the quarter. The quarter-ending price for Butyl Rubber MV 32-51 FOB Jurong in Singapore stood at USD 2090/MT, indicating a consistent and stable pricing environment in the APAC region during Q3 2024.
Europe
In Q3 2024, the Butyl Rubber market in Europe experienced fluctuating pricing trends driven by several key factors. The overall sentiment was influenced by changes in production costs, overseas demand, and feedstock price fluctuations, particularly isobutylene. In July, prices witnessed an upward trend due to higher production costs and strong export demand, particularly from regions like China and India, despite weaker domestic demand. By August, the market sentiment turned bearish as production costs declined and global demand weakened, leading to oversupply and price softening. The improved domestic automotive sector in Europe mitigated some of the negative effects, but the overall market remained under pressure. In September, while local demand remained stable, sluggish global trade flows continued to impact prices negatively. Supply chain disruptions and inventory buildup led to discounted prices, as market players sought to stabilize pricing. Overall, Q3 2024 experienced a combination of bullish and bearish forces, with heightened volatility reflecting global economic conditions and feedstock price shifts.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Butyl Rubber market experienced a mixed trend, driven primarily by several key factors. During the first half of the second quarter, the Butyl Rubber market maintained its stability at a higher end. The stability can be attributed to the performance of the downstream sectors. The downstream Automotive sector experienced growth and the disputes in the Canadian Railways likely added pressure on US market players. However, the weak performance of the downstream construction sector lowered the upward trend of the commodity and hence, resulted in a stable market scenario. However, during the second half of the quarter, the Butyl Rubber market witnessed a steep decline in their trend. The most significant influencer was a marked decrease in demand from the Automotive and Construction sectors. This decline in demand was compounded by elevated inflation rates, which dampened consumer purchasing power and overall market confidence. Additionally, subdued spending on manufactured goods, as households became increasingly cautious with their expenditures, further exacerbated the situation.
In the USA, where the most substantial price changes occurred, the diminishing prices were starkly evident. Seasonality played a role, with typically lower off-season demand contributing to the downward trend. This was further intensified by a 6% decrease from the previous quarter in 2024 and a notable -9% difference between the first and second half of Q2. The correlation in price changes mirrored the broader economic indicators, reflecting a cautious market outlook amid rising costs and economic uncertainties.
Moreover, supply-side disruptions, such as potential strikes in the Canadian National Railways and fewer imports, pressured US producers to ramp up production, which, paradoxically, led to oversupply and further price reductions. Consequently, the quarter-ending price of Butyl Rubber MV 32-51 in the USA settled at USD 2050/MT.
APAC
In Q2 2024, the Butyl Rubber market in the APAC region experienced a notable increase in prices, driven primarily by heightened demand from downstream sectors, particularly automotive and tire industries. The resurgence in these sectors contributed significantly to the bullish market sentiment, further exacerbated by supply chain disruptions and port congestions across Asia. This quarter witnessed a significant rise in trading activities, as market players sought to capitalize on escalating demand. The introduction of new policies aimed at stimulating the automotive sector also played a pivotal role in propelling market prices. Focusing on China, which saw the most substantial price changes, the market dynamics were particularly intense. The "Implementation Rules for Car Trade-in-Subsidy," a policy introduced in May 2024, aimed at boosting automotive sales, significantly increased demand. Consequently, the Butyl Rubber MV 32-51 prices soared, reflecting a strong correlation with burgeoning automotive sector activities. Seasonal factors, such as increased demand during the Dragon Boat Festival, further accentuated the price hikes. The quarter also saw a 16% price increase from the previous quarter, underscoring the robust upward trend. A price comparison within the quarter revealed a 2% increase in the second half, highlighting sustained momentum. Despite facing no major plant shutdowns, the market had to navigate through supply chain bottlenecks and rising production costs, driven by higher crude oil prices. The overall pricing environment remained positive, buoyed by consistent demand surges and limited supply. The quarter concluded with Butyl Rubber MV 32-51 prices at USD 2560/MT Ex-Qingdao in China, cementing the strong upward trajectory observed throughout Q2 2024.
MEA
In Q2 2024, the Butyl Rubber market in the MEA region experienced a pronounced downturn, driven primarily by a confluence of unfavorable market dynamics. The quarter was marked by a significant oversupply relative to demand, particularly from the downstream sectors such as automotive and construction. This imbalance resulted in heightened inventory levels, exerting downward pressure on prices. Additionally, the market was further destabilized by disruptions in the supply chain, notably the temporary shutdown of key production facilities, including the Al-Jubail plant, which exacerbated the supply glut. The economic environment also contributed to the bearish trend, with weakening purchasing power and subdued consumer demand, reflecting broader economic uncertainties. Focusing on Saudi Arabia, the market witnessed the most substantial price declines. The overall trends showed a distinct seasonality effect, with the summer months typically experiencing a downturn due to reduced industrial activity and slower construction projects. This seasonality, coupled with the increased supply from regional producers, led to a significant correlation in price changes throughout the quarter. Compared to the previous quarter, prices fell by 5%, reflecting a persistent negative sentiment. Furthermore, a comparison between the first and second halves of the quarter indicated a steeper decline of 3%, underscoring the continuous bearish momentum. By the end of Q2 2024, Butyl Rubber MV 32-51 was priced at USD 2440/MT FOB Jeddah, marking a definitive downturn in the pricing environment. The cumulative factors, including supply surpluses, seasonal demand fluctuations, and operational disruptions, collectively reinforced a negative pricing trend for Butyl Rubber in the MEA region and particularly in Saudi Arabia, indicating a challenging market landscape for stakeholders.
Europe
During the second quarter of 2024, the Butyl Rubber market in Europe experienced a mixed trend. During April 2024, the market showcased bearish market sentiments due to disruptions in the commodity's supply chain. While the downstream Automotive sector showed strength during this period, the Manufacturing and Construction sectors exhibited weakness. As a result, the demand for Butyl Rubber from downstream sectors was met primarily by existing inventories. However, the accumulation of commodities led to a bearish trend in the Butyl Rubber market. On the other hand, the Butyl Rubber market experienced a slight incline in their trend which was primarily driven by heightened demand from overseas markets and an increase in the production cost of the commodity. Despite this growth, the domestic Russian automotive and construction sectors saw a downturn during the same period. The uptick in the Russian butyl rubber market can be attributed to the rise in exports to China. This surge is further supported by a new policy introduced by the Chinese government aimed at boosting the automotive sector, which in turn spurred demand from the downstream sector. The market activities were initially subdued due to the May Day holidays at the start of the month, leading to a pause in importing activities because of reduced market operations. However, upon the market's reopening, there was a notable increase in exports from Russia to China. Compared to the previous quarter, prices fell by 4%, reflecting a persistent negative sentiment.
For the Quarter Ending March 2024
North America
The North American Butyl Rubber market in Q1 2024 experienced a positive pricing environment, with prices showing an upward trend. This can be attributed to several significant factors that influenced market prices. Firstly, there was a robust demand from the downstream Automotive and Tire sectors, leading to an increased rate of consumption of existing inventories. This resulted in the need for increased production of Butyl Rubber to meet the rising demand from both domestic and overseas markets. Additionally, the low supply of Butyl Rubber further supported the price increase.
In the USA, the market saw the maximum price changes compared to other countries in the region. The prices of Butyl Rubber in the US market experienced an incline of 5.91% in the quarter. This can be attributed to the strong demand from the downstream sectors and the low supply of the commodity. Despite the challenges faced by the US economy, particularly in the retail sector, the Automotive sector showed sustained strong demand, contributing to the price increase.
Overall, the pricing environment for Butyl Rubber in the North American region was bullish in Q1 2024. The increased demand and low supply led to positive market sentiment, with market participants raising their ex-quotations and offering higher prices. In conclusion, the Butyl Rubber market in the North American region, particularly in the USA, experienced a positive pricing environment in Q1 2024. The strong demand from the downstream sectors and the low supply of the commodity led to an increase in prices.
APAC
The first quarter of 2024 has seen a bullish trend in Butyl Rubber MV 32-51 pricing across the APAC region, particularly in China, the largest market for Butyl Rubber in the area. Throughout the quarter, prices in China have consistently risen. January 2024 saw a substantial increase in sales of China-made vehicles as compared to the previous year's weaker sales, according to data from the China Association of Automobile Manufacturers (CAAM). This surge in vehicle production and exports contributed to increased demand for Butyl Rubber, coupled with lower existing inventory levels, leading to price increases. However, February witnessed a notable year-on-year and month-on-month decline in retail sales, primarily due to consumption timing discrepancies caused by the Chinese New Year holiday. Some sales were pulled forward into January, impacting February's sales figures. This situation led to heightened pricing competition post-holiday, resulting in a cautious approach from consumers. In March 2024, Butyl Rubber MV 32-51 prices continued to rise due to increased demand from the downstream automotive sectors. March proved to be a robust month for China's electric vehicle manufacturers, with many reporting significant sales gains after a slow start to the year due to seasonal holidays. China's overall car exports also surged in March. The overall trend in Butyl Rubber prices has been influenced by factors such as demand from downstream automotive and tire sectors, inventory levels, and production costs. Seasonality and correlation have also played a role in price changes. Compared to the same quarter last year, Butyl Rubber prices have increased due to high demand and limited supply. However, the percentage change from the previous quarter in 2024 has remained relatively stable.
MEA
The pricing environment for Butyl Rubber in the MEA region for Q1 2024 has been volatile, with significant factors influencing market prices. In Saudi Arabia, the largest market for Butyl Rubber, prices experienced fluctuations throughout the quarter. The overall trend for Butyl Rubber prices in Q1 2024 was negative, with prices declined in February before rebounding in March. This is attributed to various factors, including the shorter month of February and disruptions due to the Chinese New Year celebrations, which led to lower consumption of existing inventory levels. Additionally, the demand from both domestic and overseas markets was lower compared to the previous month. In Saudi Arabia specifically, prices saw a decline in January and February before increasing in March. This can be attributed to increased demand from downstream automotive and tire sectors, as well as constrained supply and increased offers for Butyl Rubber cargoes. Producers had to raise their production rate to meet the rising demand, resulting in higher prices. Overall, the pricing environment for Butyl Rubber in Q1 2024 in the MEA region can be described as volatile, with fluctuations in prices influenced by factors such as demand from downstream sectors, supply levels, and seasonal factors.
Europe
In the first quarter of 2024, the Butyl Rubber market in Europe saw favorable pricing conditions, characterized by an uptick in prices. This trend can be ascribed to various notable factors that impacted market pricing. Specifically in Russia, prices experienced a decrease in January and February followed by an increase in March. In January and February, the prices of Butyl Rubber showcased a declining pattern as the ongoing Russian-Ukrainian War negatively affected the downstream Automotive and Tire sectors. At the same time, higher gas prices and rising interest rates raise the cost of vehicle ownership, potentially triggering a significant drop in vehicle demand. Therefore, due to the lower demand from the downstream sectors, the inventories were accumulated and the prices of Butyl Rubber witnessed a decline in trend. In March, the prices of Butyl Rubber MV 32-51 experienced an increase in their trend due to heightened demand from the downstream Automotive sectors. The existing inventories were insufficient to meet this demand, resulting in price increases for the commodity. Additionally, production rates of the commodity were increased to fulfill the demand and maintain a balance between supply and demand. The available inventories proved inadequate to meet the demand from downstream Automotive enterprises. Consequently, production rates were escalated to attain a balance between supply and demand. Moreover, trade flows from the Russian market to the domestic as well as the overseas markets intensified due to the rising demand from abroad.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 was a challenging period for Butyl Rubber in the North American region. The market faced several factors that influenced prices and demand. Firstly, the US automotive sector experienced a decline in sales due to a strike by the United Auto Workers (UAW) union against major automakers. This strike disrupted the supply chain and led to concerns about potential disruptions in the production of vehicles, impacting the demand for Butyl Rubber.
Secondly, the European construction industry also witnessed a slowdown, resulting in a decrease in import orders for Butyl Rubber from the US. This decline in demand further affected the market dynamics. Lastly, the global crude oil prices continued to rise due to production cuts implemented by OPEC+ countries, leading to higher production costs for Butyl Rubber. These increased costs contributed to the overall increase in prices for the quarter. No plant shutdowns were reported during this period. In the USA, the price of Butyl Rubber at the end of the fourth quarter was USD 2050/MT FOB Texas. This represented a significant price increase of 8.93% compared to the previous quarter.
Overall, the fourth quarter of 2023 was characterized by challenges in the automotive and construction sectors, leading to an incline in demand for Butyl Rubber in the North American region. The impact of the UAW strike and the slowdown in the European construction industry, along with rising crude oil prices, were the primary factors influencing the market and rising prices during Q4 of 2023.
APAC
The fourth quarter of 2023 for Butyl Rubber in the APAC region was characterized by several key factors that influenced the market and prices. Firstly, there was a low supply of Butyl Rubber, however, the demand for Butyl Rubber was high. The automotive sector showed some growth, therefore overall consumer sentiment in the region remained strong. As a result, the market situation was bullish, and prices experienced a slight increase of 3.12% compared to the previous quarter. However, in Singapore, the prices of Butyl Rubber experienced significant changes, and the demand for Butyl Rubber remained weak in the domestic market, despite the ongoing growth in the automotive sector. However, the lackluster performance of the construction industry contributed to the overall weak demand. There were no reported plant shutdowns during this quarter. The current quarter's price of Butyl Rubber MV 32-51 FOB-Jurong in Singapore stands at USD 2120/MT, marking a slight decrease of -2.18% compared to the previous quarter.
MEA
The fourth quarter of 2023 was characterized by various factors that impacted the pricing of Butyl Rubber in the Middle East and Africa (MEA) region. Firstly, the global automotive industry showcased recovering market sentiments, driving the demand for Butyl Rubber. This was particularly evident in countries like Saudi Arabia, where the demand surged. Secondly, the prices of Butyl Rubber were influenced by the fluctuating crude oil prices. The increase in crude oil prices during this quarter resulted in higher production costs for Butyl Rubber, ultimately leading to an uptick in its market value. Lastly, the availability of Butyl Rubber remained relatively steady in the MEA region, with minimal issues reported in terms of supply and port congestion. In Saudi Arabia, which experienced the most significant changes in Butyl Rubber prices, the cost of Butyl Rubber increased during the quarter due to the substantial rise in crude oil prices. The anticipation of reduced supply and the decision by Saudi Arabia and Russia to extend their voluntary production cuts contributed to the surge in crude oil prices. As a result, the production costs of Butyl Rubber increased, leading to higher market prices in Saudi Arabia. Overall, the MEA region witnessed a bullish market situation for Butyl Rubber in the fourth quarter of 2023, driven by strong demand from the automotive sector and the impact of crude oil prices. The latest price of Butyl Rubber MV 32-51 Ex- Jeddah in Saudi Arabia for the current quarter is USD 60/MT.
Europe
During the Q4 of 2023, the prices of Butyl Rubber showcased an incline throughout the quarter. In October, the price of Butyl Rubber in the Russian market saw a significant Incline. There was a positive development in October as the demand for used cars in Europe started to recover, following a period of month-on-month declines. Furthermore, the European automotive industry also showcased improvement during this month. Hence, amidst increased inquiry from the European market, the price of Butyl Rubber surged in Russia. In November 2023, the selling rate of passenger vehicles in Western Europe experienced a slight increase. Compared to the same period last year, the region saw a rise of 5.3% y-o-y in vehicle sales, marking a nearly 16% increase year-to-date from November 2022. Consequently, there was sustained demand for Butyl Rubber in the market. Hence, the price of Butyl Rubber surged in the Russian market on the back of increased inquiries from the European market. Furthermore, in December 2023, due to the escalation in the tension between Ukraine and Russia, a disturbance in the supply and demand equilibrium occurred which led to the increased prices of the commodity. Furthermore, the an increase in the demand for Butyl Rubber from the downstream automotive sector and insufficient inventory levels. Therefore, the buyers increased their purchasing activities to meet the rising demand from the downstream sector.
In conclusion, during the fourth quarter of 2023, the prices showcased a bullish market situation for Butyl Rubber. In comparison to the previous quarter, the prices of Butyl Rubber showcased an increase of 2.17% and at the end of the quarter, the prices of Butyl Rubber MV 32-51 reached USD 1800/MT (FOB-Novorossiysk).
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the North American Butyl Rubber market experienced a series of fluctuations. It commenced with a significant price decline in July, stabilizing in August, and culminating in a notable price surge in September. July saw a substantial drop in Butyl Rubber prices, primarily due to an oversupply of inventories in the industry. This decline was further influenced by a stable manufacturing sector and decreasing feedstock (Isobutylene and Isoprene) prices. Furthermore, in August, the Isobutylene prices decreased further, and production costs for Butyl Rubber continued to fall, offsetting the strong demand from both domestic and international markets, thereby maintaining price stability throughout August. In September, Butyl Rubber prices witnessed a substantial increase. This surge was driven by heightened demand from downstream industries within the domestic market, particularly the thriving US automotive sector. Despite a strike by the United Auto Workers (UAW) against Detroit's major automakers, US vehicle sales flourished, with 1.33 million new vehicles sold in September. This robust performance in the automotive sector, combined with positive indicators of recovery in the US construction industry during the same month, led to a significant uptick in Butyl Rubber demand. Additionally, a surge in crude oil prices, attributable to OPEC+ production cuts, contributed to higher production costs for Butyl Rubber, supporting the subsequent increase in its market value.
APAC
Butyl Rubber prices in the Asian market diverged from the North American trend in the third quarter of the year and showcased a significant rise in July, followed by a stable market trend in August and a plunge in September. The surge in July was propelled by a sharp increase in demand from the automotive industry, which had been excelling on a global scale. The Association of Southeast Asian Nations (ASEAN) witnessed a 5.8% rise in light-vehicle sales compared to the previous year, with a year-to-date growth of 1.5%. Concurrently, light-vehicle production in the ASEAN region experienced a 3% year-over-year increase in July, and the trend persisted into August. China and India, which import Butyl Rubber from Singapore, also reported substantial year-on-year growth in their automotive sectors in August. However, Isobutylene prices in Singapore dipped in July but attempted to recover in August. However, the production cost of Butyl Rubber continued to decrease due to declining feedstock Isobutylene prices, countering the strong demand and maintaining a stable market trend in August. In September, Butyl Rubber prices plummeted in Singapore due to reduced demand in the Asian market. South Korea's top automakers saw a 6% year-on-year decline in domestic sales, partly due to interest rate hikes. Consumer sentiment in China was subdued due to economic slowdown, affecting the construction industry and, consequently, Butyl Rubber demand.
Europe
The European market witnessed surge in Butyl Rubber prices in the first month of quarter 3, however, as the quarter proceeded, the market started showcasing consistent plunge. In July, the European market witnessed a notable upswing in the price of Butyl Rubber, driven by an impressive surge in demand originating from the downstream automotive industry. This sector, which had showcased remarkable performance on the global stage, played a pivotal role in bolstering the demand for Butyl Rubber, a crucial component in various automotive applications. However, despite the strong recovery in year-on-year sales in the downstream automotive industry, the pricing landscape for Butyl Rubber witnessed a noteworthy decline within the market throughout the month of August as the construction industry across the Eurozone experienced its most pronounced downturn of the year. This downturn primarily stemmed from a sharp decline in demand within Germany, coupled with escalating costs of raw materials, even as the requirement for construction inputs diminished. Furthermore, the price of Butyl Rubber slumped further in the European market during September, backed by weak inquiries from the downstream automotive and construction sectors.
MEA
In the third quarter of 2023, the price of Butyl Rubber in the Saudi Arabian market experienced consistent surges driven by various factors. In July, a significant increase was observed, primarily due to a surge in demand from the global automotive industry, which had been performing exceptionally well. August saw another substantial rise in Butyl Rubber prices, primarily attributed to a rise in international inquiries. Belgium, China, and Singapore emerged as major importers from Saudi Arabia, and all three countries experienced significant growth in their automotive sectors during the month. The surge in downstream automotive sectors in these importing countries led to increased demand for Butyl Rubber from Saudi Arabia, consequently driving up its market value. In September, the cost of Butyl Rubber further increased due to rising crude oil prices. Crude oil prices reached their highest point, driven by the anticipation of reduced supply, despite concerns about a weaker economy and increased US crude inventories. This upward momentum in crude oil prices was influenced by Saudi Arabia and Russia's decision to extend voluntary production cuts until December to support higher oil prices. As a result, the rising crude oil prices throughout September led to increased production costs for Butyl Rubber, ultimately contributing to its higher market value.
For the Quarter Ending June 2023
North America
Butyl Rubber prices showed consistent growth in the US market in the second quarter of 2023, supported by strong market performance in the automotive industry. Concerns remained high over whether rising interest rates would significantly reduce consumer spending, but recent indicators suggested that consumers were comfortable spending large amounts of money. The automotive industries faced acute shortages in the first half of 2023 amid concerns about semiconductors availability, which impeded mass assembly until the second half of the year when the situation stabilized. As a result, a combination of improved supply and rising consumer appetite drove strong growth going into the next fiscal quarter. External factors such as the collapse of two major financial institutions at the end of Q1 had a negative impact on the economy in the second quarter, but the temporary suspension of a national debt ceiling helped avoid a recession. Inflation levels measured by the consumer price index (CPI) in the USA increased by only 0.1% in May after a significant increase of 0.4% in April.
APAC
The second quarter of 2023 saw a turbulent market trends for Butyl Rubber in the Asia-Pacific region. Butyl Rubber prices surged in April, followed by a consistent plunge in May and June. The decline in prices in May and June was due to a combination of factors, most notably overstock and increased market competitiveness. Due to the increase in the production and supply of Butyl Rubbers, excess inventories accumulated, resulting in an oversupply in the market. As a result, suppliers and manufacturers are forced to reduce inventories and lower prices to remain competitive. In addition, the presence of competitors vying for market share increased competition, necessitating price adjustments to attract customers. This decline in Butyl Rubber prices in Asia reflects the challenges facing the industry in balancing supply and demand and the need for market participants to adapt to changing market conditions. However, April's price increase was due to strong demand from downstream industries. While the price of the raw materials has mostly been falling, keeping input costs low, the resurgence of downstream consumption has increased the market value of Butyl Rubbers. Strong development of the automotive sector in other Asian countries contributed to a significant increase in demand. Declining industrial activity also contributed to the price increase.
Europe
Butyl Rubber prices continued to fluctuate in Europe in Q2 2023, supported by an unstable supply and demand dynamics. Prices fell in April, rose in May, and fell again in June. Butyl Rubber prices fell in the Russian market despite improved market sentiment in the downstream automotive industry in April. Poor development of the replacement tire industry led to reduced purchases of material, which ultimately led to lower prices for Butyl Rubber. A strong increase in demand from the automotive and pharmaceutical industries led to a significant increase in the price of Butyl Rubber in Russia. Strong growth in the Russian automotive industry, combined with increased demand for high-performance tires and sealants, has led to increased demand for Butyl Rubber. In addition, stringent requirements for maintaining product integrity and preventing contamination in the pharmaceutical sector have further contributed to the increased demand for Butyl Rubber in Russia. As a result, the increased demand for these industries led to a significant increase in the price of Butyl Rubber in the Russian market in May. However, weakening demand sentiment led to an unexpected drop in Butyl Rubber prices in the Russian market in June. Poor performance of the European construction industry on the face of ongoing destocking and weak demand led to lower consumption of Butyl Rubber in the global market, leading to lower market demand. In addition, the Purchasing Managers Index (PMI) of the Russian manufacturing sector again remained in the growth zone, confirming an improvement in the production rate of some commodities, consistent with falling market prices of commodities such as Butyl Rubber.
MEA
In the second quarter of 2023, Butyl Rubber prices continued to fluctuate in the MEA region, supported by an unstable supply and demand dynamics. Prices fell in April, rose in May, and fell again in June. Market sentiment in the downstream automotive industry improved in April, but Butyl Rubber prices fell in the Saudi market. Poor performance in the replacement tire industry led to reduced material procurement, leading to lower prices for Butyl Rubber. Butyl Rubber prices rose significantly in May in the Saudi Arabian market, mainly due to high demand from Singapore and Belgium. These countries have shown growing interest and strong demand for Butyl Rubber, leading to increased exports from Saudi Arabia. Singapore is known for its resilient industrial and manufacturing sectors, particularly automotive and construction, and relies heavily on Butyl Rubber for applications such as tire manufacturing, sealants, and adhesives. Belgium, with its thriving pharmaceutical and chemical industries, also needed Butyl Rubber to produce lids, stoppers and seals for pharmaceutical packaging. Increased demand from Singapore and Belgium created a supply-demand imbalance in the Saudi market, driving up the price of Butyl Rubber as manufacturers and exporters sought to capitalize on the increased demand. As a result, increased demand from these industries is creating significant upward pressure on Butyl Rubber prices in the MEA market. Saudi Arabia's Butyl Rubber market saw an unexpected price drop in June due to a lack of market sentiment. Market trends for Butyl Rubber were depressed due to a prolonged lack of demand and slow market development in the Saudi construction industry. Moreover, Saudi Arabia's manufacturing purchasing index (PMI) was 59.6 in June, up from 58.5 in May, suggesting increased production of various products, including Butyl Rubber, has led to falling values.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Butyl Rubber market revealed conflicting sentiments due to fluctuating supply and demand dynamics. When compared to January, the price of Butyl Rubber rose in February before dropping again as the quarter's end approached. The automotive industry started to rebound as soon as the semiconductor supply started to increase, but it was soon adversely affected by the financial instability brought on by the fall of two big US banks. Less Butyl Rubber was being utilized in the industry because the downturn in the economy had a particularly negative influence on the automotive industry, which eventually led to a fall in price. Thus, in the USA, the assessed price of Butyl Rubber MV 32-51 was USD 2485/MT FOB Texas.
APAC
During the first quarter of 2023, the Asia-Pacific region's prices for Butyl Rubber continuously increased thanks to growing downstream demand. The automotive sector had a market upswing that led to an increase in Butyl Rubber purchases as soon as the first quarter of the year got underway. A substantial rise in the industrial output and sales of the automotive industry was the reason for the observed surge. At first, Butyl Rubber's rebound was swift as it tried to make up for its losses from the previous year. However, the growth of Butyl Rubber slowed down once more in February and March. As a result, in March, the price of Butyl Rubber MV 32-51 in China reached USD 2295/MT EX-Qingdao.
Europe
Throughout the first quarter of 2023, Butyl Rubber prices fell in the European market, which was aided by a decline in downstream demand. The demand for Butyl Rubber did not significantly rise even though the European market for the downstream automotive and tire sectors showed signs of improvement on numerous occasions throughout the quarter. In addition, there were numerous stockpiles of Butyl Rubber, and the price fell since there was less demand for the product in the area than there was supply. The lack of port congestion and supply chain bottlenecks also enhanced the supply rate, which supported the drop in the price of Butyl Rubber. As a result, in March, Russia's assessed price for Butyl Rubber MV 32-51 was USD 1830/MT FOB Novorossiysk.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a strong start for the North American Butyl Rubber market; its prices saw a noticeable rise till November before gradually decreasing for the rest of the quarter. Contradictory sentiments during the quarter could be seen in the market due to differences in downstream demand from different businesses. Due to their uneven growth throughout the quarter, the domestic market's demand for Butyl Rubber from the tire and automobile industries fluctuated. Upstream expenses and variable manufacturing costs influenced the expansion of the Butyl Rubber sector as well. Consequently, the expected price for Butyl Rubber MV 32-51 in the USA in December was USD 2655/MT FOB Texas.
APAC
The market value of Butyl Rubber in the Asia-Pacific region displayed contrasting sentiments in the fourth quarter of 2022. Butyl Rubber prices declined till November and suddenly started showcasing an upward market trend in December. One of the key factors influencing the fluctuations in Butyl Rubber pricing during the quarter was inconsistency in downstream demand from the tire and automotive industries. The instability in natural gas prices was a key contributor to the unsteadiness in the market for Butyl Rubber. Consequently, the assessed value of Butyl Rubber MV 32-51 was USD 2040/MT Ex-Qingdao.
Europe
Amidst differences in downstream demand from various industries, the market value of Butyl Rubber in the European market displayed conflicting attitudes in the fourth quarter of 2022. Demand for Butyl Rubber fluctuated up and down in tandem with the uneven expansion of the tire and automotive industries. The growth of the Butyl Rubber market was influenced by upstream costs as well as variable production costs. Due to this, the price trend for Butyl Rubber declined in October, climbed in November, and then decreased again in December. Hence, in Russia, the assessed price of Butyl Rubber MV 32-51 was USD 2040/MT FOB Novorossiysk. Meanwhile, plummeting freight charges on Asia to Europe routes resulted in increased Asian exports on European shores.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the price of Butyl Rubber steadily grew in the North American market due to soaring raw material costs. Even though the downstream demand from the tire and automotive industries was not exceptionally high during the quarter, the rising raw material prices influenced the upstream costs associated with producing Butyl Rubber, ultimately driving up its market value. Further raising the price of Butyl Rubber in the domestic market were port backlogs and supply interruptions in the second half of the quarter. Thus, in September, the evaluated price value for Butyl Rubber MV 32-51 was USD 2830/MT FOB Texas (USA).
APAC
Due to rising raw material costs, Butyl Rubber prices in the Asia-Pacific region progressively increased in the third quarter of 2022. Even though the demand from the tire and automotive industries was not exceptionally strong during the quarter, the increased raw material prices had an impact on the upstream expenses related to manufacturing butyl rubber, ultimately raising its market value. Port backlogs and supply disruptions in some Asian countries during the second part of the quarter contributed to an increase in the price of Butyl Rubber in the domestic market. So, in September, Butyl Rubber MV 32-51 appraised price worth was USD 2790/MT FOB Jurong (Singapore).
Europe
The third quarter of 2022 saw a gradual rise in the price of Butyl Rubber in the European market because of the growing raw material costs. The rising raw material prices had an impact on the upstream expenses associated with making Butyl Rubber, ultimately driving up its market value, even if the demand from the tire and automotive industries was not particularly strong during the quarter. During the quarter, port backlogs and supply interruptions in the nations led to an increase in the price of Butyl Rubber in the domestic market. As a result, the Butyl Rubber MV 32-51 assessed price was USD 3040/MT FOB Novorossiysk (Russia).
For the Quarter Ending June 2022
North America
In North America, Butyl Rubber prices witnessed a mixed trend in the second quarter of 2022 due to fluctuating demand dynamics. In April, the rate of cost inflation accelerated as firms passed on higher costs to customers via a near-record increase in output charges. Higher operating expenses were frequently associated with metals, energy, fuel, and transportation costs. Some firms mentioned that mainland China's Ukraine war and COVID-19 lockdowns had exacerbated surging prices. Continental expects global replacement sales volumes in the consumer segment (passenger and light commercial vehicles) to fall more than 30% in the second quarter, compared to 40% and 45 percent in Europe and North America, respectively. However, new orders fell in May and June due to inflationary pressures, low client confidence in the outlook, and supply-chain disruptions. Firms supplemented production with current holdings of inputs and finished goods as input purchases slowed and supply chain delays eased. As a ripple effect, Butyl Rubber MV 32-51 FOB Texas prices were quoted at USD 2910/MT during June.
Asia-Pacific
Butyl Rubber Prices declined throughout the quarter in China, disrupted by the supply and low demand amid Covid-Restrictions. The tumbling Naphtha futures drove Butyl Rubber prices even lower. Feedstock Isobutylene and Isoprene had declined on the back of low demand. Therefore, during the month ending June, the price for Butyl Rubber settled at USD 2885/MT Ex- Qingdao. In Contrast, the Indian market saw an increment in the first half due to the limited availability and high demand from the tire industries. However, Butyl Rubber prices dropped in the second half of Q2. Furthermore, the downstream Tire industries' demand has diminished, weakening the Butyl Rubber prices. Consequently, the price for Butyl Rubber in India hovered around INR 182300/MT CFR Mumbai during June 2022.
Europe
In Europe, Butyl Rubber prices surged throughout the second quarter of 2022 on the back of the crippling availability of the product in the region. Since crude oil was observed increased, mainly impacted due to the low production of Crude oil by OPEC+ nations and tight supply, have positively affected the Naphtha prices, which in turn led to the high prices of Butyl Rubber across the regional market. On the other hand, demand for Butyl Rubber from the end-user sector remained robust alongside high offtakes from the Tire industries. Moreover, transportation and logistics have also been hampered since the beginning of the European conflict, have the other facets for the high prices of Butyl Rubber in the European region.
For the Quarter Ending March 2022
North America
Butyl Rubber market has been termed as stable to weak owing to sluggish demand fundamental and stable supply fundamentals during the first quarter of 2022. As of March 2022, Butyl Rubber prices were assessed at USD 2620 per MT on FOB basis. Prices have remained mostly stable throughout the month, observing minimum fluctuations. Feedstock halogens have been in relative firm demand which increased the cost pressure over Butyl Rubber. However, weak demand follow-up meant limited space for price fluctuations for market participants. The sluggish performance of the automotive industry has also hampered the tire industry. Consequently, demand for original equipment tires has slowed, which in turn culminated in weak procurements for elastomers.
Europe
During the first half of 2022, Butyl Rubber (BR) prices in Europe continued to decline till the mid-February assessments, where BR prices have dropped significantly. On the demand side, the tire industry has stabilized production rates, where stagnancy in the automotive sector continues to plague several key industries, including the tire industry. Consumption of Original equipment (OE) has been the worst hit. This in turn, has curtailed the consumption of elastomers from the tire industry. Belgium has been a key exporter, and healthy production rates have availed ample BR in North-western Europe, including Germany. Import availability has also increased, which further deterred the market sentiment in the region. However, pricing sentiment changed drastically due to the outbreak of the Russia-Ukraine war which constrained the supply chains while hampering demand fundamentals. Meanwhile, feedstock prices soared in the backdrop of the rising cost of upstream crude oil and LNG. Hence, the prices of CIIR Butyl Rubber concluded the first quarter at Euro 2570 per MT (USD 2775 per MT) on an FOB basis.
Asia Pacific
Butyl Rubber market has been termed as bearish Q1 of 2022 in the Asia Pacific. Butyl Rubber prices have been on the downtrend in H2 of last quarter after reaching peak values in November where prices hit INR 243 per kg. Although, since then, prices have declined significantly, reaching INR 205 per kg in late February. Although Butyl Rubber prices rebounded in the first week of March and were assessed at INR 206500 per MT (USD 2707.44 per MT) on an Ex-location basis, however, the increase in prices has been limited in altering the bearish sentiment in the Indian domestic market. Demand has improved as the speculations around supply chains gained traction since the beginning of the European crisis as market participants scrambled to secure material. In China, the Butyl Rubber market also remained weak during the first quarter initially due to ample material availability in the domestic market and later on, prices deteriorated in the backdrop of the resurgence of covid cases, which altered supply-demand dynamics while crippling transportation and logistics in South Asia.
For Quarter Ending December 2021
North America
Robust demand from downstream tire industry and consistently risen feedstock prices have culminated into a strong quarter for Butyl Rubber market. HBR market gained from increased consumption from downstream tire industry in the North American region. Consequently, FOB price of HBR rose from USD 3010 per MT in October to USD 3288 per MT in December. HBR Imports from Southeast Asia remained hampered on North American shores as high freight charges provided limited opportunity for Southeast Asian exports to be competitive and sustainable across US and Canada.
APAC
Butyl rubber prices have increased in Indian domestic market during the initial stages of Q4 stemming from increased demand from downstream tire industry. However, Butyl rubber prices stabilized during the H2 of Q4 as the demand stagnated from tire and other allied industries. Butyl rubber demand worsened towards the end of the last quarter. This market sentiment has been vindicated by the price trend where HBR prices increased in October to INR 198330 per MT while prices declined in December to INR 183400 per MT on CFR basis. Butyl Rubber market also followed a similar pattern in China market where prices increased in October to USD 2412 per MT however on the back of declining demand from downstream tire industry, same was vindicated by the decline in prices in December where HBR prices dropped to USD 2300 per MT on FOB basis.
Europe
Tire industry has another strong quarter across European region where on the back of robust replacement tire demand and consistent Original Equipment (OE) demand, manufacturers maintained healthy production rates. Consequently, feedstock Butyl Rubber market also enjoyed firm volume intakes from downstream industries. Market participants remarked that despite sluggish performance of automotive sector, tire industry measured significant growth and same was vindicated by the consistent price increase of HBR across European countries. HBR prices in December were assessed at USD 3440 per MT.
For the Quarter Ending September 2021
North America
In North America, Butyl Rubber prices continued the upward trajectory during Q3 of 2021 owing to the recovered demand from both the international and domestic markets. During the hurricane season, supply was affected as most of the refineries were shut as a part of emergency plan for almost around 2 weeks. Hence, prices of Butyl Rubber shot up followed by the constrained supply and firm demand from the downstream sectors in this timeframe. Furthermore, volatility in the value of crude oil also influenced its prices throughout the quarter.
Asia Pacific
During the third quarter of 2021, Butyl Rubber prices witnessed an upward trajectory in the Asian markets backed by the robust demand from the automotive sector following the economic recovery in the post pandemic period. Recovery in the automotive sector pushed up the demand for Butyl Rubber in India as well. In addition, soaring feedstock Isobutylene and Isoprene values kept its pricing trend high throughout the quarter. Thus, Butyl Rubber IIR Mm 45-46 Ex- Ludhiana prices rose to USD 2266.65 per MT in September showcasing a significant rise since July.
Europe
In the European market, Butyl Rubber witnessed an upward trend during the third quarter of 2021 mirroring the market trend of other regions. Soaring raw materials values as well as delayed imports as an impact of Ida hurricane led to a significant hike in the prices of Butyl Rubber in this timeframe. Moreover, exorbitant freight charges and constraint availability of shipping containers further influenced the cost of Butyl Rubber in Europe.
