In the Asian market particularly Japan, Neoprene Rubber prices have decreased in October 2025 due to the declining costs of feedstock and changes in industrial conditions and initial overall demand from the end-users for Neoprene Rubber. The price of butadiene, a feedstock for Neoprene Rubber, has fallen 1.0%, which could help producers lower other input costs. Nevertheless, soft overall demand from end-users has affected pricing in the market, and while costs have fallen, pricing on Neoprene Rubber has remained low in the respective period.
Industrial developments have presented mixed signals. For instance, Tosoh Corp. expanded its production of its SG series bio-composite chloroprene rubber at the Nanyo complex, where cellulose nanofiber (CNF) was used as a fossil-based reinforcing agent and ultimately reduced CO2 emissions. Commercial applications have a wider scope, such as the automotive, industrial, cable systems, adhesives, and glove industries urban areas used for SG series chloroprene production. However, domestic consumption still appears restrained. Furthermore, Denka's chloroprene elastomers segment continues to show indications of the declining nature of a manufacturer, as total first-half FY2025 sales retract from Yen 56.4 billion to Yen 49.9 billion year-on-year and operating losses increased to Yen 3.4 billion. The stoppage of DPE in the U.S. meant a reliance on the Omi Plant, which stabilized shipments at the expense of robust growth, while still generating (non-USD) revenue growth. Denka did experience a minor improvement of Yen 1.0 billion for the first half, the company maintained extraordinary losses attributed to the DPE removal of materials.
From the supply perspective, Neoprene Rubber inventories are relatively plentiful given the sufficient butadiene inventory available for production needs. Limited demand from end-users has resulted in limited bidding activity and growing stockpiles. Exports did rise moderately, with Statistics Japan reporting 6,779.507 MT of total chloroprene-based rubber shipments in September 2025, a 10.8% increase from the previous month. Nonetheless, domestic manufacturers are still facing difficulties unloading surplus product into the marketplace, sustaining pressure on prices.
Demand trends paint a mixed picture across sectors. Weak automotive sales in October 2025, down 7.71% month-on-month to 395,189 units, softened requirements for Neoprene Rubber for automotive components. Japan's construction sector provided strong momentum as domestic orders surged 19.5% YoY to Yen 9.42 trillion, allowing for moderate demand for sealing, waterproofing, and thermal insulation applications. The aerospace & defense sector appeared resilient as Mitsubishi Heavy Industries’ 1H FY2025 revenue increased to Yen 538.8 billion and allowed solid demand for Neoprene Rubber for vibration control and cable coatings and sealing parts.
According to ChemAnalyst, Neoprene Rubber price is likely to remain under pressure. Neoprene Rubber price volatility is primarily correlated to the combination of ample supply weak demand from end-users, and continued pressure on profitability has weighed on Neoprene Rubber prices in Japan. Unless industrial activity and export orders begin to pick up in the coming months, market participants are likely to see price softness for the duration of the near term.
