For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the U.S. Hydrogenated Nitrile Butadiene Rubber (HNBR) market experienced a slight 0.92% decrease from the previous quarter, reflecting the overall dynamics of moderate supply and demand fluctuations. Feedstock prices, such as Butadiene and Acrylonitrile, contributed to price stability, although both witnessed decreases, supporting the more subdued market conditions.
Manufacturing and supply remained stable, with suppliers managing adequate production levels to meet steady demand, despite disruptions caused by hurricanes and port congestion. Suppliers effectively adjusted to these challenges through inventory management and operational efficiency, maintaining a consistent flow of HNBR.
Demand in the automotive sector showed resilience, with steady vehicle sales reported throughout the quarter, marking notable increases in monthly figures. Conversely, the aerospace sector faced challenges, with Boeing’s reduced aircraft deliveries and production setbacks impacting overall HNBR consumption. Despite the setbacks, Boeing’s order for 200 787 MAX 10s brought cautious optimism for future recovery in the sector. The U.S. manufacturing sector continued its decline, as weaker order books and rising inventories indicated a potential slowdown, although business confidence improved in December. Despite these challenges, the stable automotive sector and effective supply chain management helped the HNBR market remain steady, mitigating the overall price decrease.
APAC
In the fourth quarter of 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in Japan experienced a 0.29% decrease from the previous quarter, largely driven by a combination of supply and demand factors. Despite steady feedstock availability, including Butadiene and Acrylonitrile, the automotive sector's underperformance and weak domestic demand contributed to the overall market slowdown. Manufacturers reported a decline in production volumes, influenced by reduced demand and extended delivery times. Additionally, sector-specific dynamics such as moderate activity in the aerospace sector provided some support, yet the overall market sentiment remained subdued. The trade data revealed mixed export trends, with shipments to China fluctuating, while exports to the U.S. showed significant variance, underscoring regional demand shifts. The manufacturing sector showed signs of stabilization in December, with some improvement in employment and a reduction in order backlogs. However, caution remained prevalent as manufacturers adjusted to the moderate supply conditions, bolstering their inventory levels while avoiding aggressive purchasing strategies. The combination of weak demand from key industries and cautious buyer sentiment shaped the overall market performance, reflecting a modest decline in market dynamics compared to the previous quarter.
Europe
In the fourth quarter of 2024, the European Hydrogenated Nitrile Butadiene Rubber (HNBR) market faced a challenging period, driven by mixed demand and supply conditions. While the automotive sector experienced a downturn, with new car registrations in December falling by 7.1% year-on-year, the aerospace sector performed well, with Airbus achieving strong delivery and order figures. This helped partially offset the sluggish demand from the automotive industry and supported continued consumption of HNBR in aerospace applications. The market also faced logistical difficulties, particularly with persistent port congestion at major European hubs, which strained supply chains. However, manufacturers worked to improve operational efficiencies and reduce lead times to mitigate these challenges, maintaining adequate inventory levels. Despite these hurdles, steady overseas demand, particularly from the aerospace sector, helped maintain a balanced market. However, the reduced activity in the automotive sector and ongoing supply chain pressures created a more challenging environment for suppliers, who had to adjust their strategies accordingly. Overall, the European HNBR market navigated a difficult quarter, but with a resilient aerospace sector and steady demand, it remained relatively balanced, though still facing significant challenges.
For the Quarter Ending September 2024
North America
In Q3 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in North America maintained stable prices, with the USA being the focal point for significant price movements. This stability can be attributed to moderate demand from key sectors, particularly automotive.
However, the aerospace sector faced challenges due to Boeing's underperformance, which negatively impacted overall HNBR consumption during the period. Despite a slight rise in input costs, the pricing environment remained steady, driven by consistent supplier actions and subdued demand. Notably, there were no reported plant shutdowns, ensuring a stable supply chain throughout the quarter.
Compared to the previous quarter, HNBR prices remained unchanged, while there was a notable 19.89% increase from the same quarter last year. In the feedstock market, Butadiene prices surged by 119% year-over-year, significantly influencing HNBR pricing during this period. The stable pricing trend was bolstered by adequate inventory levels, steady downstream demand, and minimal fluctuations in raw material costs. By the end of the quarter, HNBR prices in the USA stood at USD 35,260/MT.
APAC
In Q3 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in the APAC region maintained stable prices. This stability was driven by consistent pricing from major exporters, effective supply chain management, and a balanced supply-demand dynamic, which prevented significant price fluctuations. Japan notably saw minimal price changes, with a recorded 1% increase from the previous quarter. However, year-on-year comparisons showed a slight decline of 1.30% in prices from the same quarter last year. Despite global economic uncertainties, the HNBR market in Japan displayed resilience, reflecting a stable pricing environment. By the quarter's end, HNBR prices ranged from 36% to 45% FOB Osaka, standing at USD 22,600/MT, emphasizing the prevailing consistent sentiment in the market. Additionally, the absence of reported disruptions or plant shutdowns during the quarter further supported the stable pricing conditions. The combination of steady demand and efficient supply chains contributed to the overall price stability of HNBR in the APAC region, reinforcing confidence among suppliers and consumers alike.
Europe
The price trend for Hydrogenated Nitrile Butadiene Rubber (HNBR) in Europe is currently challenging, influenced significantly by feedstock fluctuations and market dynamics. Suppliers are facing increased costs due to a 9.69% rise in butadiene prices in Q3, which has pressured HNBR pricing. Meanwhile, acrylonitrile prices saw a 10.36% decrease during the same period, creating an uneven cost landscape for manufacturers. Additionally, suppliers are contending with lower automobile sales compared to the previous quarter, as diminished economic performance has curtailed overall consumer spending across various sectors, including fashion, retail, and furniture. This decline in demand has further strained HNBR pricing as suppliers adjust their strategies to cope with shifting market conditions. In response to these challenges, suppliers may consider optimizing production processes or reevaluating pricing strategies to maintain competitiveness while navigating the pressures from fluctuating feedstock costs and reduced demand in downstream markets. Overall, the combination of rising butadiene costs and weakening demand is contributing to the current pricing challenges in the HNBR market.
For the Quarter Ending June 2024
North America
In Q2 2024, the market for Hydrogenated Nitrile Butadiene Rubber (HNBR) in North America has experienced a marginal decrease, with prices remaining largely constant. Key factors contributing to stable HNBR pricing include balanced supply and demand dynamics and adequate inventory levels maintained by suppliers. The supply disruptions witnessed, such as the severe drought affecting the Panama Canal, did not significantly disrupt the market's equilibrium as anticipated rains improved the situation.
Additionally, no significant plant shutdowns were reported during the quarter, further supporting the consistent supply levels. For USA, which saw the most substantial price changes within North America, HNBR prices remained steady, influenced by a mix of factors.
The automobile sector demonstrated a robust demand, contrasting with lower production levels in the aerospace sector, which balanced out the overall demand pressure. From the previous quarter in 2024, prices recorded a slight decline of -1%, indicating a stable trend without significant volatility. The quarter-ending price for HNBR 36%-45% FOB Texas in the USA was USD 35,260/MT.
APAC
During Q2 2024, the market for Hydrogenated Nitrile Butadiene Rubber (HNBR) in the APAC region experienced a decrement. Influential factors included a balanced supply chain, moderate demand from key downstream sectors such as automotive and aerospace, and steady feedstock costs, particularly for Acrylonitrile and Butadiene. Notably, there were no significant disruptions or plant shutdowns reported during this quarter, which contributed to the overall market equilibrium. Focusing on Japan, where the most notable price changes occurred, the HNBR market demonstrated resilience amidst varying demand dynamics and cost structures. The Japanese market's pricing was primarily due to consistent supplier performance, ample inventory levels, and effective management of production costs. Despite fluctuations in automotive sales, the aerospace sector's robust performance helped maintain a balanced demand-supply scenario. Comparatively, the overall trends in Japan reflected a more stable pricing environment when viewed against the previous quarter's decline of 2%, suggesting a recovery phase. The price comparison between the first and second halves of the quarter showed no significant disparity, reinforcing the stability narrative. The latest quarter-ending price for HNBR 36%-45% FOB Osaka was recorded at USD 22450/MT, indicating a balanced market sentiment.
Europe
In the European market, the price of Hydrogenated Nitrile Butadiene Rubber (HNBR) has seen a notable decrease recently. This trend is largely influenced by the downturn in the automotive sector, which has been experiencing reduced production volumes and weakening demand. As a significant portion of HNBR's application lies within the automotive industry, the slump in this sector has directly impacted the demand for HNBR, resulting in downward pressure on prices. Moreover, the overall manufacturing sector in Europe is also facing challenges, contributing further to the reduced demand for HNBR. Despite a relatively stable aerospace industry, the gains in this sector have not been sufficient to offset the declines in automotive and general manufacturing. The aerospace industry's positive performance, driven by ongoing technological advancements and increased demand for new aircraft, has provided some support, but not enough to counterbalance the broader market weaknesses. Overall, the European HNBR market is currently navigating through a challenging phase, characterized by decreased prices driven by downturns in key sectors like automotive and general manufacturing, despite some positive momentum in aerospace.
For the Quarter Ending March 2024
North America
In the USA, the HNBR market witnessed an upward price trend amidst sectoral shifts. The automotive sector displayed resilience, evidenced by the sale of 3,797,420 units, signaling 2.83% decline from previous quarter but increasing month on month growth. Conversely, the aerospace sector faced challenges, notably with Boeing's decision to limit 737 productions due to heightened regulatory scrutiny and safety concerns.
The decline in Boeing's 737 MAX jetliner production adversely affected the aerospace industry, exacerbated by the Federal Aviation Administration's production cap and ongoing safety issues. Despite these challenges, the HNBR market in the USA experienced a price uptick, reaching 35,810 USD/MT FOB-Texas, marking a significant 6.45% increment in Q1 2024 from Q4 2023.
This price incline is attributed to various factors, including steady demand from the automotive sector and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market. Additionally, support from overseas markets like Mexico, Brazil, and Canada further bolstered the price trend of HNBR in the respective quarter, highlighting the market's resilience amidst sectoral challenges.
APAC
The HNBR market in the APAC region witnessed an inclining phase in the current quarter of 2024 (Q1) from January to March. The overall market situation was positive, with adequate supply in the downstream market. However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period.
Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions. Totally 6717000 Units of Automobile sold in this quarter in the Chinese market which is comparatively lower as compared to the previous quarter. However the aerospace market is also underperforming in the Chinese market.
However in the Indian market, the activeness in the Indian government witnessed in the Aerospace sector. Hindustan Aeronautics Ltd the Indian Aerospace company as of March 31, 2024, has an order book exceeds Rs 94,000 crores, with additional major orders expected during FY 2024-25. Japan on the other hand replicated the overall asian market scenario being the major exporter of the HNBR in the Asian market. As of this quarter ending the price of the HNBR halted at 23050 USD/MT FOB-Osaka marking an increment of 1.14% in this quarter.
Europe
In the European market the price of the HNBR witnessed a challenging scenario in Q1 2024. This situation is majorly attributed to the decline in the overall manufacturing performance in the European economy particularly Germany. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors which has not impacted majorly in the price trend in this quarter.
However, amidst these factors, the downstream automobile market demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region.
Nevertheless in the Aerospace sector market total 142 deliveries to 45 customers given from the major Aircraft maker Airbus in this quarter. The safety issue in the USA Aircraft maker Boeing’s aircraft has significantly impacted positively on the European aircraft maker Airbus market which has thereby influenced the demand for the various commodities including HNBR in the European market.
