December Destocking Driving Down the Halo Butyl Rubber Prices in Europe
- 23-Dec-2022 2:35 PM
- Journalist: Patrick Knight
Hamburg, Germany: Halo Butyl Rubber's price has been falling in the European market since the last week of November 2022, and as December 2022 progresses, the market trend has been going in the same direction. Halo Butyl Rubber costs have dramatically lowered because of two key variables: falling natural gas prices and the destocking season. Prices for Halo Butyl Rubber CIIR reached USD 2588/MT FD Hamburg in November, indicating a drop of 1.8% on a weekly basis. Not that Halo Butyl Rubber has been an exception, but prices for many elastomers have been falling rapidly recently.
Since European Natural Gas reserves are fully stocked, the plentiful natural gas supply has contributed to market stabilization and price reduction. Additionally, owing to decreased yard occupancies and fewer port congestions, supply chains are running smoothly, ensuring a steady flow of materials into the market. Consequently, the inquiries from the downstream industries can be easily met by the current stockpiles.
Several variables contribute to the declining market value of Halo Butyl Rubber in the European market, including declining natural gas costs and the resolution of supply chain concerns. Furthermore, the ongoing destocking of the previously accumulated inventories is also one of the reasonable factors behind to drop in Halo Butyl Rubber value, as manufacturers are selling the material at a lesser cost to clear off the shelves.
As per ChemAnalyst anticipations, "It is anticipated that the falling natural gas costs and poor market sentiments would further support the weak price trend of Halo Butyl Rubber in the upcoming weeks. Additionally, because December is a destocking month, manufacturers are more likely to accept a lower price for their goods, ultimately cutting Halo Butyl Rubber's cost in the forthcoming weeks. In addition, as the holiday season approached, demand is anticipated to fall even further owing to restricted market activity."