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European Halo Butyl Rubber Prices are Driving Upwards due to Supply Woes

European Halo Butyl Rubber Prices are Driving Upwards due to Supply Woes

European Halo Butyl Rubber Prices are Driving Upwards due to Supply Woes

  • 15-Sep-2022 4:46 PM
  • Journalist: Harold Finch

Hamburg, Germany: Halo Butyl Rubber prices showcased an upward trend in the European market for another week, backed by supply chain disruptions. Even if there is still a lacklustre downstream demand from the automobile sector, Halo Butyl Rubber prices are increasing. The supply chain disruption is a crucial factor driving the prices of Halo Butyl Rubber. European manufacturing plants have low operation rates and insufficient inventory levels, and their ability to import commodities is jeopardised. Only a slight increase has been seen in the Halo Butyl Rubber prices, as weak downstream demand has been keeping things in check.

The most significant factors governing the European market are high gas prices and limited supply. Recently, Gazprom declared the closure of Nord Stream 1, which used to fulfil 12% of European gas demand and cut off Europe's dependence on gas from Russia. The gas supply has been reduced, causing the production cost of different commodities to rise. Meanwhile, Low water levels affected the Rhine River, used mainly by European countries for transportation, followed by a blockade by damaged cargo.

The problem is getting worse due to ongoing port congestion at important ports like Hamburg and Bremerhaven. Shipping is being hampered because of the ongoing labour unrest and strike in the German domestic market, a shortage of empty containers, an increase in the time it takes for ships to berth, and an increase in yard occupancy. In addition to the severity of marine freight, Germany has been affected hard by road freight bottlenecks. Halo Butyl Rubber is imported by road into Germany from European nations like Belgium and the UK, and the ongoing difficulty with road freight has been impacting its shipment.

As per ChemAnalyst anticipations, "In the following weeks, Halo Butyl Rubber's market value in Europe will continue to rise. The current situation in the European countries is not likely to improve until supply, and logistical problems are resolved; hence increment in the market value of Halo Butyl Rubber would be observed."

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