Improving Availability Pushes Down Halo Butyl Rubber Prices in Europe
- 28-Oct-2022 3:25 PM
- Journalist: Peter Schmidt
Hamburg, Germany: Halo Butyl Rubber prices have recently been declining in the European market, backed by decreasing production costs and improving supply chain conditions. Though the market value of Halo Butyl Rubber has been following a downward trend since the start of this month, the percentage of price falls has increased severely during the last week. During the week ending on 21st October, the price value of Halo Butyl Rubber CIIR was USD 2480/MT CFR Hamburg, indicating a drop of around 3.7%. The trend has replicated itself in the current week in European countries.
As the gas prices have dropped in the European market, for the time being, the cost of production for Halo Butyl Rubber has reduced, causing lesser upstream costs, eventually resulting in a decrement in its market value. However, according to experts, this decline in gas prices is only temporary, and the market would be in trouble once again when winter arrives, carrying increased demand for energy on its back. Though the downstream demand from the automotive and tire industries has been improving in Europe, it is still not enough to significantly impact the market. The Halo Butyl Rubber is still supply-side tilted and is governed by the upstream activities of Halo Butyl Rubber.
Furthermore, as port congestions, vessel bunching, and yard occupancies have reduced in the country, the supply chain has been operating a lot better than earlier, which ultimately has been leading to cheaper imports and better availability of the material in the market. Consequently, supporting the price reduction in Halo Butyl Rubber market.
As per ChemAnalyst analysis, “The Halo Butyl Rubber value would keep decrementing in the European market in the upcoming one or two weeks, on the back of improved supply flow in the market. However, the situation might get reversed when the demand for energy increases or if the demand for Halo Butyl rubber surges in the market.”