For the Quarter Ending September 2024
North America
In Q3 2024, Neoprene Rubber prices in North America displayed a stable trend, shaped by various market dynamics and without any major disruptions or plant shutdowns. Supply levels remained moderate, although limited access to feedstock Butadiene influenced production planning.
Suppliers skillfully balanced inventories, managing logistical challenges and fluctuating costs effectively. The USA saw the region's most significant price changes, primarily due to supply chain factors and demand from major industries. Performance varied across sectors: automotive demand was reduced amid economic slowdowns, while aerospace showed signs of gradual recovery.
Meanwhile, steady demand from the construction sector positively influenced Neoprene consumption. This mixed industrial landscape led to a stable pricing environment in the U.S., with a moderate 3.03% quarter-over-quarter price increase, indicating the market’s steady response to shifting supply and demand dynamics. The quarter closed with Neoprene Rubber priced at USD 7,607/MT CFR Texas, capturing a stable market tone with a cautiously optimistic outlook moving forward.
APAC
In Q3 2024, the Neoprene Rubber market across the APAC region exhibited notable stability, maintaining steady prices amid balanced supply and demand. This equilibrium was supported by efficient inventory management among market participants, aligning well with existing market needs. The absence of major disruptions or plant shutdowns further contributed to the region's consistent pricing environment, preventing significant fluctuations. Japan emerged as a key focus within this stability, experiencing the most distinct price movements in the region. Price trends in Japan were shaped by a strategic buildup of inventories by suppliers, aimed at buffering any future supply chain constraints. This proactive approach enabled Japan to sustain stable market sentiment throughout the quarter, with minimal seasonal impacts on pricing. The correlation between supply chain stability and consistent pricing was evident, as Japan maintained a positive market outlook despite moderate fluctuations. Prices in Japan for Neoprene Rubber FOB Osaka concluded at USD 7,274/MT, marking a quarter-on-quarter increase of 3.15%. This reflects an overall stable environment within APAC, driven by effective supplier strategies and solid demand alignment.
Europe
In Q3 2024, the European Neoprene Rubber market experienced a clear upward trend in pricing, driven by several significant factors. Rising feedstock costs, especially for Butadiene, were the primary catalyst, with price increases resulting from constrained supply chains and additional disruptions in major supply routes like the Red Sea, affecting both shipping schedules and delivery times. Strategic price increases from leading manufacturers in response to these pressures further strengthened market prices. While demand from the automotive sector lagged, strong demand from the aerospace industry kept the market tight. Germany, in particular, saw the most notable price shifts within Europe. The bullish trend in Neoprene Rubber pricing was attributed to elevated feedstock expenses, moderate supply levels, and proactive inventory management by key industry players. The quarter recorded a 5.67% price rise from the previous quarter and a 2.26% increase year-over-year, indicating a gradual upward trend. Prices concluded at USD 4,480/MT FOB Hamburg, highlighting a stable yet upward-moving market in Q3 2024. The overall outlook remained positive despite some challenges in the construction sector.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Neoprene Rubber market in North America has experienced a dynamic pricing environment, marked by both upward pressures. The primary factors influencing market prices include fluctuations in feedstock costs, particularly Butadiene, and variations in freight charges. Supply chain challenges, including disruptions in major trade routes such as the Panama Canal, also contributed to market volatility. Additionally, the pricing dynamics were influenced by the interplay of demand from key downstream sectors, namely automotive, aerospace, and construction.
In the USA, which has seen the most significant price changes, Neoprene Rubber prices reflected a complex interplay of factors. The automotive sector showed a robust performance, with new vehicle sales marking positive growth, thereby driving demand for Neoprene Rubber. Conversely, the aerospace sector faced disruptions, particularly from major manufacturers, leading to a moderated demand.
Overall trends indicate a bullish sentiment in the initial part of the quarter, driven by heightened demand and increased feedstock costs. From the previous quarter the price of the Neoprene Rubber marked 2.19% increase and 27.74% increase from a year ago. Despite these fluctuations, the pricing environment for Neoprene Rubber has been generally positive, reflecting a nuanced balance of supply and demand factors against a backdrop of macroeconomic conditions.
APAC
In Q2 2024, the Neoprene Rubber market in the APAC region experienced a dynamic pricing environment, driven by a blend of intrinsic market factors and broader economic trends. Increased feedstock costs, particularly Butadiene, played a pivotal role in elevating production expenses, subsequently pushing up Neoprene Rubber prices. This was compounded by heightened demand from key downstream sectors such as automotive, aerospace, and construction, which buoyed the market sentiment. Additionally, fluctuations in freight charges and currency valuations also contributed to the pricing volatility, underscoring the intricate interplay of supply chain dynamics and macroeconomic elements. Focusing on Japan, the market saw the most pronounced price changes in the region. The automotive sector witnessed a remarkable surge, significantly influencing Neoprene Rubber demand and prices. This increase was partly offset by underperformance in the construction sector, yet the overall trend remained markedly positive. Japan's manufacturing sector showed signs of recovery, albeit still grappling with supply chain constraints and elevated production costs. Despite a slight deceleration in new orders, the robust domestic and overseas demand reinforced the positive pricing trajectory. The cumulative effect of these factors led to a bullish market sentiment for Neoprene Rubber in Japan throughout Q2 2024, reflecting an overall favorable pricing environment marking an increment of 1.1% from previous quarter and 1.6% from a year ago.
Europe
In the second quarter of 2024, the Neoprene Rubber market in the European region experienced varied pricing dynamics, influenced predominantly by supply chain fluctuations and sectorial demands. The overall market sentiment was marked by sporadic positive movements, driven by tight supply conditions for Butadiene, a critical feedstock, which saw significant price hikes over the past year. Additionally, improvements in supplier delivery times and adequate inventory levels played a crucial role in stabilizing prices, despite ongoing supply chain constraints. The aerospace sector's robust performance, with notable orders such as HTM Helicopters' acquisition of Airbus H145 helicopters and the German Ministry of the Interior's substantial H225 helicopter order and many more, provided a considerable uptick in demand, further influencing price trends. Focusing on Germany, the market for Neoprene Rubber saw pronounced price fluctuations. The country's automotive sector faced a sign of improvement in passenger car registrations, suppressing demand from one of Neoprene's traditional markets. The construction sector, however, continued to struggle with decreased activity and employment, exerting downward pressure on purchasing costs. Despite these challenges, supplier delivery times significantly improved, contributing to a moderate supply environment. The quarter concluded with a notable surge in prices with 4.3% surge from previous quarter and 6.1% decline from an year ago, reflecting a bullish market trend amidst sector-specific challenges and supply chain enhancements.
For the Quarter Ending March 2024
North America
In the USA, the Neoprene Rubber market witnessed a marginal decline in the price trend in the Q1 2024. In the feedstock market the price of the Butadiene continued to showcase uptrend which is used for Chloroprene monomer production. This price fluctuation in the US market is the reflection from the major exporter in the asian market Japan. 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 Neoprene Rubber market in the USA experienced a price uptick, reaching 7370 USD/MT CFR-Texas, marking a significant 1.73% decrement in Q1 2024 from Q4 2023. This price incline is attributed to various factors, including steady demand from the Automotive, Construction and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market.
APAC
The Neoprene Rubber market in the APAC region witnessed a declining trend 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 Chinese and Japanese Construction sector continued to face subdued demand Japan while the Indian Construction sector continued to outperform throughout the respective quarter. With respect to the overall market conditions in the asian market the suppliers have decreased their exquotation price this quarter. As of this quarter ending the price of the Neoprene Rubber halted at 7040 USD/MT FOB-Osaka marking a decrement of 7.61% in this quarter.
Europe
In the European market the price of the Neoprene Rubber witnessed an upswing scenario in Q1 2024. This rise in the price is majorly attributed to the surge in the price of the Butadiene a major feedstock for the Chloroprene Monomer used for the manufacturing of the Neoprene Rubber.
In the European market, the overall manufacturing performance in the European economy particularly Germany, France, Netherlands remains subdued while Spain and Italy Outperformed. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors resulted into activeness in the accumulation of the inventories which has significantly contributed to the price surge 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 with increase in the sales over month-on-month basis. Nevertheless the Construction sector continued to hamper the European economy due to lack of demand. With respect to the current market conditions the Eurozone has unchanged its interest rates throughout this quarter. At the ending of this quarter the price of the Neoprene Rubber halted at 4260 USD/MT FOB-Hamburg marking an increment of 4.93% from the previous Quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Neoprene Rubber market in North America displayed a mixed performance, influenced by various factors. A notable factor was the robust demand from the automotive sector, driven by increased vehicle sales and production in the United States. Despite challenges such as strikes and higher interest rates, the US automotive industry witnessed a surge in new car sales, contributing to stable demand for Neoprene Rubber.
Supply dynamics played a role, with inventories moderately available; however, reduced shipping demand from Asia led to an oversupply of shipping capacity, resulting in a surplus of Neoprene Rubber in the global market. Logistical challenges, including congestion in the Panama Canal due to low water levels, were observed but did not significantly impact Neoprene Rubber supply.
In the United States, demand for Neoprene Rubber remained moderate to high, with consistent inquiries from the automotive and construction sectors. Despite a strike by the United Auto Workers (UAW) against major automakers, production continued, supporting the demand for Neoprene Rubber. At the end of the quarter, the price for Neoprene Rubber stood at 7500 USD/MT CFR-Texas.
APAC
Neoprene Rubber pricing in the APAC region during the fourth quarter of 2023 was influenced by various factors. Firstly, the demand for Neoprene Rubber remained at a moderate level throughout the quarter, driven by moderate inquiries from the elastomers industries and increased consumption rates from the automotive and construction sectors across various Asian countries. Secondly, the availability of Neoprene Rubber in the market was affected by low to moderate supply levels, as inventories were not adequately stocked. Lastly, the cost support for Neoprene Rubber declined due to reduced upstream naphtha and crude oil prices, resulting from increased refining capacity, and resumed refinery operations in the North American region. This increase in price was primarily due to strong demand from the Chinese market, where the sales of new energy passenger cars surged, supported by government incentive policies and an improved economy. At the end of the fourth quarter in 2023, the price of Neoprene Rubber in APAC, particularly in Japan, was USD 7620/MT FOB Osaka, marking an incline of 0.26%.
Europe
The fourth quarter of 2023 was challenging for the Neoprene Rubber market in Europe. The market saw a bearish trend with low to moderate demand from buyers. The weak performance of the construction and automotive industries contributed to the decline in demand for Neoprene Rubber. The manufacturing sector also faced contraction, leading to a decrease in production rates. Additionally, the availability of inventories remained high in the market due to sluggish procurement activities and moderate consumption in the tire and automotive sectors. Germany, in particular, experienced a decline in passenger car sales, further impacting the demand for Neoprene Rubber. However, there were no reported plant shutdowns during this period. The price of Neoprene Rubber in Germany decreased by 5.85% compared to the previous quarter. This decline can be attributed to the weakened demand and ample supply in the market. The price of Neoprene Rubber in the European market particularly Germany at the end of the quarter was USD 4060/MT FOB Hamburg marking a decline of 4.47%.
For the Quarter Ending September 2023
North America
Neoprene Rubber prices in the North American market exhibited a mixed pattern during the third quarter of 2023. They saw a significant increase in July and August only to decline in the following month. The price of Neoprene Rubber in the US market went up in the initial months of quarter 3 due to strong demand, driven by a substantial rise in vehicle sales in the US. The US automotive industry has consistently shown strong annual growth due to factors like improved availability, fleet shipments, and customer incentives. While the year-over-year growth continued in August, there were some faint signs of a slowdown in the monthly growth, despite having two additional selling days. Additionally, on a global scale, crude oil prices have been on the rise, raising concerns about its impact on the world economy, especially when many are already grappling with inflation. One of the reasons behind the increase in crude oil prices is the decision by the US Federal Reserve to maintain its interest rates to prevent a downturn in the US economy. This surge in crude oil prices has led to higher production costs for Neoprene Rubber, resulting in an uptick in its market value. However, for the rest of the quarter, the Neoprene Rubber market experienced a noticeable decline in prices. This decrease can be attributed to the continuous fall in the prices of the raw material, which had a downward impact on the overall production costs of Neoprene Rubber. Interestingly, despite robust market sentiments in the global automotive and tire sectors, the market dynamics favoured oversupply, resulting in a significant decrease in pricing trends
APAC
Neoprene Rubber prices showcased mixed market momentum in the Asia-Pacific region during the 3rd quarter of 2023. The Neoprene Rubber prices surged in July only to fall back again in the month of August and become stable in September. Neoprene Rubber prices surged in the Asian market during July on the back of increased downstream demand. According to reports, domestic new vehicle sales of Japan in June increased by 19.8% compared to last year. As the Japanese automotive industry performed well, Neoprene Rubber consumption increased. The automotive industry in other Asian countries like South Korea and India also performed well in the market which supported the increase in downstream demand for Neoprene Rubber. Furthermore, the Asian new vehicle market witnessed a remarkable growth in August 2023. This positive shift can be attributed to the gradual recovery from the impact of Covid-19 lockdowns, which began easing in the latter part of the prior year. Furthermore, the improved availability of semiconductors enabled automotive manufacturers to ramp up production and reduce order backlogs. However, the Neoprene Rubber market showcased a significant plunge during August. This slump can be attributed to the continuous decline in the prices of the raw material, throughout July, followed by a slight recovery in August. These declining raw material costs continued to exert downward pressure on the production expenses of Neoprene Rubber Consequently, despite a noticeable increase in demand from downstream sectors, the prices of Neoprene Rubber dropped in the last months of the quarter. Furthermore, amidst stable demand supply dynamics in September, the prices of Neoprene Rubber remained unchanged.
Europe
The prices of Neoprene Rubber showcased fluctuating market sentiments during the third quarter of 2023. The prices of Neoprene Rubber surged in July, only to showcase a consistent decline in August and September. During July, there was a noticeable price surge for Neoprene Rubber in the European market. This increase was spurred by a remarkable surge in demand from the downstream automotive sector. Additionally, the European market experienced a 0.1% decline in inflation during July, further contributing to the heightened demand for Neoprene Rubber. However, in the subsequent months, 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. This deceleration in construction activities was perceptibly mirrored in the Purchasing Managers' Index (PMI) for the Eurozone construction sector, which exhibited a slight dip from 43.5 to 43.4 in August, signifying a conspicuous slowdown in industry activity. Consequently, this reduction in construction activity had a cascading effect, resulting in decreased demand for Neoprene Rubber in the European market and thereby impacting the overall market demand for this product.
For the Quarter Ending June 2023
North America
The Neoprene Rubber prices showcased mixed market momentum during the 2nd quarter of the year. In April, the Neoprene Rubber prices plunged drastically, only to make a recovery in May, followed by a consistent rise in June. The market sentiment of Neoprene Rubber improved in the second half of the quarter on the back of an uptick in sales in the automotive industry. Concerns remained high about whether rising interest rates would significantly reduce spending, but recent indicators suggested that consumers were comfortable enough to spend large purchases. The automotive industries faced acute shortages of semiconductors earlier this year amid concerns about availability, which impeded mass assembly until the latter part of the year when the situation stabilized. A combination of better supply and rising consumer appetite supported strong growth going into the next fiscal year. External factors, such as the collapse of two major financial institutions at the end of Q1, hurt the economy in Q2. However, a temporary suspension of the nation's debt ceiling helped avert a recession. Inflation levels measured by the consumer price index (CPI) in the USA increased by only 0.1% last month after a significant increase in April of 0.4%.
APAC
Asia-Pacific Region Neoprene Rubber prices increased steadily throughout Q2 2023. The prices rose consistently during the quarter and made the most improvements towards the end of the quarter. In April, Neoprene rubber costs increased due to strong downstream demand. During the month, the demand for tires increased, which led to an increase in the demand for Neoprene Rubber. Likewise, In May, the use of Neoprene Rubber increased significantly due to the increase in demand from the pharmaceutical and automotive sectors. The significant increase in the growth of these sectors led to a rise in the requirement for Neoprene Rubber, resulting in its increased market price. In June, Neoprene Rubber prices in Japan increased significantly due to an increase in demand from both domestic and international markets. Domestic Neoprene sales in Japan increased by 19.8% in June compared to June of the previous year. As import orders increased from Asian countries such as South Korea, India, etc., the procurement of Neoprene Rubber surged further, eventually causing an increment in its market value.
Europe
During Q2 2023, Neoprene Rubber's price decreased consistently in the European market. In April, the European market prices decreased despite the positive market sentiments of the downstream automobile industry. The decrease in prices was due to the replacement tire market's poor performance, which resulted in fewer purchases of the material. In May, the European market price decreased again. The decrease in input costs combined with decreasing energy prices led to a significant decrease in the production cost of the material, resulting in a decrease in the market value of the material. Furthermore, in May, the new order inflows decreased significantly, the most significant decrease in the last six months, and the Eurozone exports decreased significantly. All these factors contributed to the decrease in the prices of the material. In June, the European market experienced weak demand for neoprene rubber, despite the positive market momentum of the downstream automotive industry due to the surplus availability of inventories.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Neoprene Rubber market displayed conflicting sentiments, which was supported by shifting supply and demand dynamics. After showcasing a significant increase in January, prices for Neoprene Rubber surged again in February, only to decline as the quarter's end drew near. The automobile sector began to recover as soon as the supply of semiconductors began to improve, but it was badly hurt by the economic turmoil caused by the failure of two significant US banks. Because of the severe effects of the recession, less Neoprene Rubber was consumed by the automotive industry, which eventually resulted in a price decrease. Hence, the assessed price of Neoprene Rubber in the USA in March was USD 6400/MT CFR Texas.
APAC
The Asia-Pacific region's Neoprene Rubber market showcased mixed sentiments, which was very similar to its trend in North America. In Asia-Pacific, the cost of Neoprene Rubber rose in January, increased again in February, and then suddenly decreased in March. The faltering automobile industry in the Asia-Pacific area quickly started to exhibit indications of deterioration as China started to reduce its automotive inventories. Due to massive inventories and few sales, Tesla reduced the market value of automobiles, which started a pricing war in the Chinese auto sector. Imitating Tesla's move, other auto manufacturers started destocking as well. Due to the automotive industry's active destocking activities, the production of automobiles declined, which also had an impact on the demand for Neoprene Rubber. The Asian market's demand suffered owing to their dependence on the Chinese market for Neoprene Rubber consumption. Hence, the price of exported Neoprene Rubber from Japan was USD 6150/MT FOB Osaka during March.
Europe
Neoprene Rubber prices in the European market rose steadily during the first quarter of 2023, helped by rising downstream demand. As soon as the first quarter of the year began, the automotive industry showed a market surge, which increased purchases of Neoprene rubber. A surge was observed in January and February because of a sharp increase in the industry's industrial output and sales. Initially, the automobile industry's recovery was sharp as it attempted to recover from its losses from the previous year. However, the automotive industry's growing momentum slowed down again as the quarter approached its end because of the unsteady global economy. Consequently, the estimated price of Neoprene Rubber in Germany was USD 5900/MT FOB Hamburg in March.
For the Quarter Ending December 2022
North America
Amidst variances in downstream demand from various industries, the market value of Neoprene Rubber in North America showed conflicting attitudes in the fourth quarter of 2022. Due to the inconsistent growth of the automotive and construction industries in the domestic market, the demand for neoprene rubber from these industries fluctuated during the quarter. Upstream costs and variable production costs were other factors that impacted the growth of the Neoprene rubber industry. Because of this, the price trend for Neoprene Rubber dipped in October, showed signs of improvement in November, then dropped again in December 2022. Neoprene Rubber's assessed prices in the USA in December were at USD 5060/MT CFR Texas.
APAC
The market value of Neoprene Rubber in the Asia-Pacific region showcased mixed sentiments in the fourth quarter of 2022 with variations in downstream demand from diverse industries. The demand for Neoprene Rubber from the construction and automotive sectors of the domestic market fluctuated during the quarter because of their uneven growth. Other elements that had an impact on the expansion of the Neoprene Rubber sector included upstream costs and variable production costs. This caused the price trend for Neoprene Rubber to decline in October, increase in November, then decline once more in December. The assessed value of Neoprene Rubber MV (36-44) in China was USD 4300/MT CFR Shanghai in December, 9.9% less than the price in September.
Europe
Unlike APAC and North American markets, the European market saw a steady decline in the price of Neoprene Rubber during the 4th quarter of 2022 due to weak downstream demand and lower manufacturing costs. The demand for Neoprene Rubber decreased as the downstream automotive and construction sectors underperformed in terms of sales and industrial output during the quarter. Additionally, as the price of crude oil and natural gas fell, so did the cost of production for Neoprene Rubber, which ultimately reduced the value of the commodities market. As a result, the expected price for Neoprene Rubber in Germany during December was USD 3890/MT FOB Hamburg.
For the Quarter Ending September 2022
North America
Due to sluggish demand from the downstream construction and automotive industries, Neoprene Rubber prices have fallen continuously for the third quarter of 2022 in the North American market. The United States primarily imports neoprene rubber from Japan, Germany, and other nations. Although Japan's pricing mentality had been firm, the USA market was experiencing a bearish pricing trend due to decreased demand. The construction industry usually has its highest levels of consumption in the second and third quarters, but the mounting fears of a US recession have shifted consumer sentiment. Hence, the assessed price value of Neoprene Rubber was USD 5330/MT CFR Texas during September.
APAC
Due to shifting dynamics between supply and demand, Neoprene Rubber prices in the Asia Pacific region remained unpredictable throughout the third quarter of 2022. Neoprene Rubber prices rose in July, fell in August, and then rose again in September. The primary causes of the decline in the price of Neoprene Rubber in August were the increase in industrial production rates, the excess supply, and the glut of stockpiles. This tendency was further strengthened by weak downstream demand from the construction and automotive industries. Neoprene Rubber prices changed in September because of supply problems, supply chain disruptions, and increased demand. Finally, supply problems, low stock levels, and a recovering market were factors in the price increase for Neoprene Rubber in Asia. Conclusively, the prices of Neoprene Rubber assembled at USD 5590/MT FOB Osaka during September.
Europe
Neoprene Rubber prices in the European market were unsteady throughout the third quarter of 2022 due to fluctuating dynamics between supply and demand. Prices for Neoprene Rubber increased in July, decreased in August, and then increased again in September. The rise in industrial production rates, the excess supply, and the surplus of stocks were the main contributors to the decrease in the price of Neoprene Rubber in august. Weak downstream demand from the construction and automobile industries reinforced this tendency even further. September saw a change in neoprene rubber prices because of supply issues, supply chain interruptions, and increasing demand. Hence, the assessed price value of Neoprene Rubber was USD 6390/MT FOB Hamburg (Germany) during September.
For the Quarter Ending June 2022
North America
North American Neoprene Rubber market has remained fluctuating throughout the quarter, and a seesaw price momentum was observed. As per the data, Neoprene Rubber's price showcased an uptrend during the first half of the quarter, which later traced a downward trajectory. Imports remained costly as manufacturers in Far East Asia faced rising pressure from upstream and other input costs. Denka has recently announced a price revision which will also be applicable in the US market. However, under the influence of a looming recession, product prices slipped during the month of June 2022 in the USA.
Asia
Prices of Neoprene Rubber in the Asian market continued to rise for the second consecutive month of the quarter. As per ChemAnalyst's data, a surge of around 6% month on month basis was assessed by the end of April 2022 in the Indian market. While demand witnessed mixed sentiments throughout the month, supply was assessed to be imbalanced in the same period. India imports a large amount of its consumption from overseas. Thus, global inflationary pressure and high input cost compelled producers to raise the price of their materials not only in India but in the whole Asian market. According to ChemAnalyst analysis, Neoprene Rubber's downstream industries were observed to perform better in India than in various major Asian economies.
Europe
As per the assessment by ChemAnalyst, Neoprene rubber has continued its bullish rally in the European market owing to firm feedstock prices and strong pricing overseas. While producers and distributors have transferred the burden of exorbitant prices onto the consumers, consumers were facing the wrath of strong inflation rates in Europe. Meanwhile, demand from downstream industries has been weak to stable owing to growing speculations around recession deterring consumer sentiment. Neoprene rubber prices have been at record levels as of June 2022, and the prices increased by 3.7% at the beginning of June.
For the Quarter Ending March 2022
North America
Neoprene Rubber market started the quarter on a sluggish note owing to weak demand and ample supply availability in the North American region. However, feedstock Butadiene prices gained significantly towards the 2nd half of Q1 due to substantial rise in upstream crude oil prices, increasing the overall production cost of Neoprene Rubber, resulting in rise in price of the material. On the demand side, the performance of the construction industry remained stagnant due to the off-season consumption pattern meanwhile, volume intakes from the automotive industry were termed as stable. Hence, as of March 2022, price of Neoprene Rubber rose by 4.5% on FOB basis during the first quarter.
Asia Pacific
Weak performance of construction industry has altered the demand dynamics of Neoprene Rubber in the Chinese domestic market. Supply of the material remained firm for a significant part of the quarter owing to optimum production rates, however, limited availability of Butadiene and restricted transportation activities due to the resurgence of covid cases in China culminated in snug fundamentals of several commodities, including Neoprene rubber. Feedstock Chloroprene prices have increased on the back of the robust cost of upstream Butadiene. In Asia Pacific region, Neoprene rubber prices rose by 2-5% in the first quarter depending on the region. In China, Neoprene rubber prices increased by 3%, while in Japan prices rose by 4%.
Europe
The European Neoprene market remained strong throughout the first quarter owing to soaring feedstock prices and stable demand dynamics from the downstream market. Brent crude oil prices observed substantial volatility once the Ukraine-Russia war started in late February. Soaring crude oil prices pressured downstream Butadiene and consequently, Butadiene prices increased substantially during the first quarter, culminating in strong cost pressure on downstream chloroprene. On the demand side, Building and Construction industry kept the volume intakes on the stable side as Q1, traditionally, been an off-season quarter. Neoprene rubber gained 7.3% during the first quarter of 2022.
