For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the Halo Butyl Rubber (HBR) market experienced a slight 1% increase compared to the previous quarter. Production rates remained stable, supported by moderate availability of feedstock Isobutylene, while fluctuations in crude oil prices impacted production costs. Demand from the automotive sector remained robust, with increased vehicle sales driving higher demand for HBR in tire, tube, and automotive parts. The construction sector saw more mixed trends, with demand for HBR in adhesives and sealants showing modest growth, especially in highway and educational projects.
However, export demand weakened, particularly from Europe and Australia, due to softening global markets and supply chain disruptions. Despite these challenges, steady consumption of HBR in automotive and industrial applications helped stabilize the market.
Towards the end of the quarter, energy costs increased, placing upward pressure on production costs, but the impact was somewhat offset by moderate feedstock availability. In general, while global demand faced some slowdowns, the resilience in key sectors like automotive and adhesives led to a 1% overall increase in HBR activity, reflecting a balanced market with mixed demand dynamics.
APAC
In the fourth quarter of 2024, the Halo Butyl Rubber (HBR) market experienced a slight increase in demand, driven primarily by strong performance in the construction sector. Production levels remained steady, supported by moderate availability of feedstock Isobutylene, despite disruptions caused by Typhoon Kong-Rey. The construction sector in Japan saw a significant rise in orders, contributing to higher consumption of HBR in various applications. However, the automotive sector faced a decline in demand, with lower vehicle sales and reduced orders for HBR in automotive parts and tires. Exports from Japan showed growth, especially in chipmaking equipment, and there was moderate demand for HBR in other industries, such as paints and coatings, driven by regional expansion in Asia. The overall market remained stable, although demand in the automotive sector continued to weaken. Throughout the quarter, the market was characterized by steady production and moderate feedstock availability, while strong performance in the construction sector offset some of the softness in automotive applications. Overall, the market saw a modest uptick in activity, with demand for HBR supported by growing construction and coatings sectors.
Europe
In the fourth quarter of 2024, the Halo Butyl Rubber (HBR) market experienced a modest overall increase in activity, with a 4% rise from the previous quarter. Despite ongoing challenges in the European market, including continued manufacturing contractions and subdued demand in the construction sector, several factors supported this growth. Production rates remained steady, aided by moderate availability of feedstock Isobutylene and a slight decline in Isobutylene prices, which helped stabilize production costs. The automotive sector saw stable demand, although sales of domestic vehicles showed a decline, reflecting broader economic pressures. Export activity faced constraints due to reduced shipping capacity, tight space availability in Northern Europe, and logistical delays. However, regional inventories remained relatively high, with manufacturers adjusting their supply chains accordingly. The construction sector continued to experience a downturn, but demand for HBR in adhesives and sealants remained moderate despite the economic challenges. Throughout the quarter, cost pressures eased slightly with falling input prices, while the rise in energy costs and supply chain disruptions impacted the overall market dynamics. Despite the mixed demand across sectors, the European market saw some stability in production and moderate demand from automotive and industrial sectors, contributing to the 4% increase in HBR market activity compared to the previous quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, the Halo Butyl Rubber price trend showcased bullish movement in the North American region. Prices witnessed a notable increase, driven by factors influencing the market dynamics. Factors such as steady demand from various sectors, including automotive and construction, limited supplies, and fluctuating cost support from feedstock Isobutylene contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for Halo Butyl Rubber in the region.
In the middle of the third quarter, Halo Butyl Rubber production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. The correlation in price changes demonstrated a positive sentiment, with a 1% change between the first and second half of the quarter.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities in the region and a reduction in domestic stockpiles amid affected supply chain activities. The correlation between price changes remained consistent with a 1% increase from the previous quarter, indicating stability in the pricing environment. The quarter concluded with Halo Butyl Rubber BIIR DEL Texas prices reaching USD 2400/MT, reflecting an overall positive pricing trend in the region.
APAC
In Q3 2024, Halo Butyl Rubber's price trend showcased bullish movement, and prices in the APAC region experienced a notable increase. Various factors contributed to this upward trend, including consistent demand from the automotive sector and moderate from regional construction sectors. At the same time, the looming concerns about a recession in the US affected the international crude oil market and refinery operation during the mid-quarter. It stressed the feedstock Isobutylene supplies and Halo Butyl Rubber production rates in the region. Additionally, the market's dynamics were further complicated by supply chain disruptions impacted by seasonal factors like monsoons and typhoons and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. The price comparison between the first and second half of the quarter showed a 2% increase in prices. Conclusively, the quarter concluded with Halo Butyl Rubber CIIR FOB Tokyo quotations settled at USD 3050/MT in Japan, after an overall 3% increase from the last quarter's prices, further supporting the overall uptrend.
Europe
Like the North American region, the Halo Butyl Rubber pricing in the European market has followed an upward trajectory throughout the third quarter of 2024. The market has been influenced by stable demand from downstream industries, particularly the automotive and construction sector, despite weak production rates, with a consistent decline in the Eurozone Manufacturing PMI Index. Supply-side dynamics also played a role, as supply availability was moderately low during the summer holidays, creating imbalanced demand-supply dynamics. Yet, demand failed to match this increase, as The Eurozone's construction sector continued its downturn, significantly impacting Halo Butyl Rubber consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Additionally, concerns about a potential recession in the US affecting the international crude oil market and refinery operations have led to a shortage of feedstock supplies, impacting Halo Butyl Rubber production rates. Conclusively, the quarter concluded with Halo Butyl Rubber CIIR FD Le Havre in France, which stood at USD 3150/MT, after an overall 3% increase from the last quarter's prices, indicating a consistent upward trend throughout the quarter.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Halo Butyl Rubber (HBR) market saw a notable decline in prices due to several factors. Reduced demand from key industries like construction and automotive, which faced economic challenges and higher borrowing costs, contributed to the downward trend. Increased production capacities and slower consumption rates also created an oversupply, leading to bearish market conditions.
In the USA, price fluctuations were the most significant. Seasonal declines in summer demand and the stabilization of crude oil prices, which did not support feedstock costs as expected, further pressured HBR prices.
Halo Butyl Rubber prices fell 17% compared to the same period last year and 8% from the previous quarter, indicating a continued negative trend. Within the quarter, prices dropped 2% from the first half to the second. By the end of the quarter, Halo Butyl Rubber BIIR DEL Texas was priced at USD 2330/MT. This decline highlights a challenging market environment driven by supply-demand imbalances, economic constraints, and reduced market activity.
APAC
In Q2 2024, Halo Butyl Rubber prices in the APAC region increased notably due to several factors. Rising upstream crude oil prices, driven by OPEC+ decisions, raised production costs for feedstocks like Ethylene and Isobutylene. Steady demand from the automotive, adhesive, and construction sectors further pushed up the prices. Anticipation of increased demand in Q3 2024 led to proactive stocking and tightened supply. In Japan, where price changes were most significant, the market saw a clear upward trend. Increased seasonal demand, boosted by a recovering construction sector and higher consumption of coatings and adhesives, contributed to the rise. Halo Butyl Rubber CIIR FOB Tokyo prices increased by 2% compared to the same quarter last year and surged by 5% from the previous quarter. Within Q2, prices rose 1% from the first to the second half of the quarter, indicating a positive trend. By the end of the quarter, Halo Butyl Rubber prices in Japan were USD 2960/MT. This increase reflects a dynamic market driven by strategic stocking, sustained demand, and rising production costs.
Europe
In Q2 2024, the Halo Butyl Rubber (HBR) market in Europe saw stable prices due to a balanced demand-supply dynamic. Key factors included steady demand from the automotive and pharmaceutical sectors, consistent production rates, and managed inventory levels. The downturns in the regional construction sector persisted as investment sentiment dwindled, which led to low demand for coating and adhesives in the construction sector and reduced Halo Butyl Rubber orders from the buyers. Cost support from upstream crude oil remained moderate, preventing significant price fluctuations. In Germany, where the most notable price changes occurred, the market remained mostly stable. Prices increased by 3% from the same quarter last year but fell by 2% from the previous quarter, reflecting seasonal demand and inventory adjustments. The price remained unchanged between the first and second halves of the quarter, indicating stability. The quarter-ending price for Halo Butyl Rubber BIIR CFR Hamburg in Germany was USD 2940/MT, reflecting a stable market environment that effectively balanced various influencing factors.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Halo Butyl Rubber (HBR) witnessed a period of price adjustments within a context of shifting demand and supply dynamics. The quarter started with prices seeing a dip before a rebound in mid-January, hinting at the volatility of the market.
Despite the growth in U.S. car sales, broader economic challenges pressured the market, leading to fluctuations in HBR prices. Prices peaked in early February, driven by upticks in exporting nations' prices and positive automotive sales in Mexico. However, as the quarter progressed, there was a gradual decline, with prices settling at USD 2560 USD per MT for BIIR grade on FOB – Texas basis by March end.
The tire sector experienced a downturn, which, along with sufficient inventory levels, led to the de-escalation of prices. The automotive sector's resilience, contrasting with the tire industry's slowdown, created a complex pricing landscape for HBR. Market players navigated these conditions by destocking, adjusting input purchasing strategies in response to reduced industrial production, and aligning with the evolving Automobile and Construction sectors' demands. The quarter concluded with prices stabilizing, reflective of a market striving to find balance amid varied industrial activities and cautious supplier behaviour, ultimately maintaining a steady price level in March 2024.
APAC
The Asia – Pacific Halo Butyl Rubber (HBR) market in the first quarter of 2024 displayed notable steadiness, ending March with a consistent price of USD 2905 per MT for CIIR grade on CFR – Shanghai basis. The quarter was marked by fluctuating demands, particularly from the automotive and tire sectors, which saw various peaks and troughs due to economic shifts and seasonal impacts such as the Chinese New Year holiday. Despite these oscillations and an overall economic pressure, the market absorbed the impacts without substantial disruptions to price stability. At times, production rates adjusted in response to lower demands during holiday periods, yet as the quarter progressed, suppliers effectively managed inventories against the backdrop of a recovering downstream tire industry. This careful inventory management and the gradual resurgence in automotive demand contributed to maintaining the equilibrium between supply and demand. Hence, the price remained unaffected in March, signalling a robust market adept at navigating through the dynamics of supply chain and consumer demand within the APAC region.
Europe
The European Halo Butyl Rubber (HBR) market experienced a dynamic first quarter in 2024. Prices initially saw an uptrend, reaching a peak in February, attributed to various market pressures, including the abrupt end to EV incentives in Germany, which led to a slump in new car registrations. Mid-quarter, the prices reached their zenith at USD 3350 per MT for CIIR grade on CFR – Hamburg basis, before a course correction brought them down to USD 3130 per MT by the end of March. Throughout the quarter, the European automotive sector faced challenges, mirrored by the volatile HBR prices. However, a consistent demand from the pharmaceutical sector provided some stability to the market. Suppliers navigated through these conditions, managing inventories against fluctuating demand, leading to stable prices in March. The equilibrium achieved in HBR prices at the close of the quarter suggests a cautious but balanced market, with industry players adapting to the changing economic environment and maintaining steady supply amidst moderate demand from the automotive industry.
