Weak Demand Dives the Halo Butyl Rubber Prices in Europe
- 06-Dec-2022 4:20 PM
- Journalist: Francis Stokes
Hamburg, Germany: Since the last two weeks, the price of Halo Butyl Rubber has decreased in the European market. According to ChemAnalyst experts, the two leading reasons for this decrease in Halo Butyl Rubber prices are lowering natural gas prices and weak downstream demand. The price of Halo Butyl Rubber CIIR assembled at USD 2685/MT FD Hamburg and showed a decline of 1.6% on a weekly basis during the week ending on December 2nd. This week, the Halo Butyl Rubber market has continued to experience a downward trend. Furthermore, prices have been falling on every other type of synthetic rubber throughout the past week.
Amidst concerns regarding a possible impending recession, the demand for Halo Butyl rubber declined from the downstream tire and automotive industries as the sales of these industries dropped. Furthermore, the abundant natural gas supply has steadied the market and driven down its price since European Natural Gas reserves have been filled by more than 70%. Europe has emerged from a severe energy crisis thanks to a balanced natural gas market, and as a result, prices for numerous elastomers have been seen to be falling.
Additionally, as port congestions are at ease along with lesser yard occupancies, the supply chains are operating normally, ensuring regular material flow in the market. Hence, the available inventories easily meet whatever demand comes from the downstream industries. Altogether, reduced demand, slumping natural gas prices, and easing supply chain disruptions are all responsible for the decrementing market value of Halo Butyl Rubber in the European market.
As per ChemAnalyst anticipations, “The price of Halo Butyl Rubber is expected to continue falling in the coming weeks due to falling natural gas prices and poor market sentiments. Additionally, as December is the month for clearing out existing stockpiles, manufacturers are willing to sell their goods for less to free up space in their warehouses. Moreover, as several festivities are approaching, the demand is expected to be weaker.”