The isoprene rubber market in China in late October was stable with sufficient supply and strong import from Russia. Prices were capped by weak domestic demand and limited activities downstream despite a strong increase of import year-on-year.
In China, the price of isoprene rubber remained unchanged during the second half of October because of continuous import volume and stable domestic inventory levels. Demand remains weak and is developing in an increasingly complex trading environment.
The import data for September showed a strong upsurge in inbound volumes of Isoprene rubber at about 11,500 tons, which is an exceptional YoY growth of 24.87%. However, the average import price of Isoprene rubber fell by 5.85% year-on-year due to better international sourcing conditions.
Russia remained China’s dominant supplier of Isoprene rubber—at around 10,900 tons in September—contributing to 94.5% of the total imports. Japan followed with 567.88 tons—while arrivals from Europe fell 24.34% month-over-month—slightly impacting overall import momentum for Isoprene rubber.
The methodology of trade has become more diversified, and special customs supervision zones have grown to become the leading conduit for inbound shipments. General trade and bonded zone transactions also played important roles in enhancing distribution efficiency and smoothing out domestic availability, contributing to better trade facilitation and a more predictable supply environment for Isoprene rubber.
On the export front, structural changes are reshaping market dynamics. While total export volume in September was down 18.85% on a year-over-year basis, the value of exports gained 6.69%, reflecting more high-value trades. Cumulative exports during the first nine months were 34,384.89 tons—up 6.74% from a year earlier. India remained the major destination for Isoprene rubber but saw exports sharply lower at 1,100.80 tons. In contrast, Thailand saw an increase in Isoprene rubber with exports reaching 924.08 tons—or a growth of 375.01% over the year—highlighting growing demand in Southeast Asia.
Net imports exploded to about 79,000 tons in the first nine months, up 208.59% compared with a year earlier. Most of the producers directly supplied the product to the downstream customers and avoided sales through their traditional distribution channels. This prevented spot markets from receiving adequate supply, thus keeping prices stable through reducing speculation and inventory changes.
Domestically, the manufacturing of tires continued without interruption; semi-steel and all-steel were in healthy production positions of 74% and 66%, respectively. Raw material consumption was unchanged but purchasing strategies were prudent. No large-scale stocking-up of Isoprene rubber by manufacturers was observed, reflecting broader economic headwinds. The sluggish real estate sector continued to weigh heavily on the demand for rubber products in the construction sector, while the fading stimulus policies set a lackluster tone for end-user activity in autos.
Looking ahead, import trends are likely to remain strong, supported by favorable price differentials and a stable Russian supply of Isoprene rubber. Further optimization in imports and facilitation of trade will go on to help in further market balance. However, variable demand structure and external uncertainties will need to be closely watched during the final quarter of the year.
