For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a strong start for the North American Butyl Rubber market; its prices saw a noticeable rise till November before gradually decreasing for the rest of the quarter. Contradictory sentiments during the quarter could be seen in the market due to differences in downstream demand from different businesses. Due to their uneven growth throughout the quarter, the domestic market's demand for Butyl Rubber from the tire and automobile industries fluctuated. Upstream expenses and variable manufacturing costs influenced the expansion of the Butyl Rubber sector as well. Consequently, the expected price for Butyl Rubber MV 32-51 in the USA in December was USD 2655/MT FOB Texas.
APAC
The market value of Butyl Rubber in the Asia-Pacific region displayed contrasting sentiments in the fourth quarter of 2022. Butyl Rubber prices declined till November and suddenly started showcasing an upward market trend in December. One of the key factors influencing the fluctuations in Butyl Rubber pricing during the quarter was inconsistency in downstream demand from the tire and automotive industries. The instability in natural gas prices was a key contributor to the unsteadiness in the market for Butyl Rubber. Consequently, the assessed value of Butyl Rubber MV 32-51 was USD 2040/MT Ex-Qingdao.
Europe
Amidst differences in downstream demand from various industries, the market value of Butyl Rubber in the European market displayed conflicting attitudes in the fourth quarter of 2022. Demand for Butyl Rubber fluctuated up and down in tandem with the uneven expansion of the tire and automotive industries. The growth of the Butyl Rubber market was influenced by upstream costs as well as variable production costs. Due to this, the price trend for Butyl Rubber declined in October, climbed in November, and then decreased again in December. Hence, in Russia, the assessed price of Butyl Rubber MV 32-51 was USD 2040/MT FOB Novorossiysk. Meanwhile, plummeting freight charges on Asia to Europe routes resulted in increased Asian exports on European shores.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the price of Butyl Rubber steadily grew in the North American market due to soaring raw material costs. Even though the downstream demand from the tire and automotive industries was not exceptionally high during the quarter, the rising raw material prices influenced the upstream costs associated with producing Butyl Rubber, ultimately driving up its market value. Further raising the price of Butyl Rubber in the domestic market were port backlogs and supply interruptions in the second half of the quarter. Thus, in September, the evaluated price value for Butyl Rubber MV 32-51 was USD 2830/MT FOB Texas (USA).
APAC
Due to rising raw material costs, Butyl Rubber prices in the Asia-Pacific region progressively increased in the third quarter of 2022. Even though the demand from the tire and automotive industries was not exceptionally strong during the quarter, the increased raw material prices had an impact on the upstream expenses related to manufacturing butyl rubber, ultimately raising its market value. Port backlogs and supply disruptions in some Asian countries during the second part of the quarter contributed to an increase in the price of Butyl Rubber in the domestic market. So, in September, Butyl Rubber MV 32-51 appraised price worth was USD 2790/MT FOB Jurong (Singapore).
Europe
The third quarter of 2022 saw a gradual rise in the price of Butyl Rubber in the European market because of the growing raw material costs. The rising raw material prices had an impact on the upstream expenses associated with making Butyl Rubber, ultimately driving up its market value, even if the demand from the tire and automotive industries was not particularly strong during the quarter. During the quarter, port backlogs and supply interruptions in the nations led to an increase in the price of Butyl Rubber in the domestic market. As a result, the Butyl Rubber MV 32-51 assessed price was USD 3040/MT FOB Novorossiysk (Russia).
For the Quarter Ending June 2022
North America
In North America, Butyl Rubber prices witnessed a mixed trend in the second quarter of 2022 due to fluctuating demand dynamics. In April, the rate of cost inflation accelerated as firms passed on higher costs to customers via a near-record increase in output charges. Higher operating expenses were frequently associated with metals, energy, fuel, and transportation costs. Some firms mentioned that mainland China's Ukraine war and COVID-19 lockdowns had exacerbated surging prices. Continental expects global replacement sales volumes in the consumer segment (passenger and light commercial vehicles) to fall more than 30% in the second quarter, compared to 40% and 45 percent in Europe and North America, respectively. However, new orders fell in May and June due to inflationary pressures, low client confidence in the outlook, and supply-chain disruptions. Firms supplemented production with current holdings of inputs and finished goods as input purchases slowed and supply chain delays eased. As a ripple effect, Butyl Rubber MV 32-51 FOB Texas prices were quoted at USD 2910/MT during June.
Asia-Pacific
Butyl Rubber Prices declined throughout the quarter in China, disrupted by the supply and low demand amid Covid-Restrictions. The tumbling Naphtha futures drove Butyl Rubber prices even lower. Feedstock Isobutylene and Isoprene had declined on the back of low demand. Therefore, during the month ending June, the price for Butyl Rubber settled at USD 2885/MT Ex- Qingdao. In Contrast, the Indian market saw an increment in the first half due to the limited availability and high demand from the tire industries. However, Butyl Rubber prices dropped in the second half of Q2. Furthermore, the downstream Tire industries' demand has diminished, weakening the Butyl Rubber prices. Consequently, the price for Butyl Rubber in India hovered around INR 182300/MT CFR Mumbai during June 2022.
Europe
In Europe, Butyl Rubber prices surged throughout the second quarter of 2022 on the back of the crippling availability of the product in the region. Since crude oil was observed increased, mainly impacted due to the low production of Crude oil by OPEC+ nations and tight supply, have positively affected the Naphtha prices, which in turn led to the high prices of Butyl Rubber across the regional market. On the other hand, demand for Butyl Rubber from the end-user sector remained robust alongside high offtakes from the Tire industries. Moreover, transportation and logistics have also been hampered since the beginning of the European conflict, have the other facets for the high prices of Butyl Rubber in the European region.
For the Quarter Ending March 2022
North America
Butyl Rubber market has been termed as stable to weak owing to sluggish demand fundamental and stable supply fundamentals during the first quarter of 2022. As of March 2022, Butyl Rubber prices were assessed at USD 2620 per MT on FOB basis. Prices have remained mostly stable throughout the month, observing minimum fluctuations. Feedstock halogens have been in relative firm demand which increased the cost pressure over Butyl Rubber. However, weak demand follow-up meant limited space for price fluctuations for market participants. The sluggish performance of the automotive industry has also hampered the tire industry. Consequently, demand for original equipment tires has slowed, which in turn culminated in weak procurements for elastomers.
Europe
During the first half of 2022, Butyl Rubber (BR) prices in Europe continued to decline till the mid-February assessments, where BR prices have dropped significantly. On the demand side, the tire industry has stabilized production rates, where stagnancy in the automotive sector continues to plague several key industries, including the tire industry. Consumption of Original equipment (OE) has been the worst hit. This in turn, has curtailed the consumption of elastomers from the tire industry. Belgium has been a key exporter, and healthy production rates have availed ample BR in North-western Europe, including Germany. Import availability has also increased, which further deterred the market sentiment in the region. However, pricing sentiment changed drastically due to the outbreak of the Russia-Ukraine war which constrained the supply chains while hampering demand fundamentals. Meanwhile, feedstock prices soared in the backdrop of the rising cost of upstream crude oil and LNG. Hence, the prices of CIIR Butyl Rubber concluded the first quarter at Euro 2570 per MT (USD 2775 per MT) on an FOB basis.
Asia Pacific
Butyl Rubber market has been termed as bearish Q1 of 2022 in the Asia Pacific. Butyl Rubber prices have been on the downtrend in H2 of last quarter after reaching peak values in November where prices hit INR 243 per kg. Although, since then, prices have declined significantly, reaching INR 205 per kg in late February. Although Butyl Rubber prices rebounded in the first week of March and were assessed at INR 206500 per MT (USD 2707.44 per MT) on an Ex-location basis, however, the increase in prices has been limited in altering the bearish sentiment in the Indian domestic market. Demand has improved as the speculations around supply chains gained traction since the beginning of the European crisis as market participants scrambled to secure material. In China, the Butyl Rubber market also remained weak during the first quarter initially due to ample material availability in the domestic market and later on, prices deteriorated in the backdrop of the resurgence of covid cases, which altered supply-demand dynamics while crippling transportation and logistics in South Asia.
For Quarter Ending December 2021
North America
Robust demand from downstream tire industry and consistently risen feedstock prices have culminated into a strong quarter for Butyl Rubber market. HBR market gained from increased consumption from downstream tire industry in the North American region. Consequently, FOB price of HBR rose from USD 3010 per MT in October to USD 3288 per MT in December. HBR Imports from Southeast Asia remained hampered on North American shores as high freight charges provided limited opportunity for Southeast Asian exports to be competitive and sustainable across US and Canada.
APAC
Butyl rubber prices have increased in Indian domestic market during the initial stages of Q4 stemming from increased demand from downstream tire industry. However, Butyl rubber prices stabilized during the H2 of Q4 as the demand stagnated from tire and other allied industries. Butyl rubber demand worsened towards the end of the last quarter. This market sentiment has been vindicated by the price trend where HBR prices increased in October to INR 198330 per MT while prices declined in December to INR 183400 per MT on CFR basis. Butyl Rubber market also followed a similar pattern in China market where prices increased in October to USD 2412 per MT however on the back of declining demand from downstream tire industry, same was vindicated by the decline in prices in December where HBR prices dropped to USD 2300 per MT on FOB basis.
Europe
Tire industry has another strong quarter across European region where on the back of robust replacement tire demand and consistent Original Equipment (OE) demand, manufacturers maintained healthy production rates. Consequently, feedstock Butyl Rubber market also enjoyed firm volume intakes from downstream industries. Market participants remarked that despite sluggish performance of automotive sector, tire industry measured significant growth and same was vindicated by the consistent price increase of HBR across European countries. HBR prices in December were assessed at USD 3440 per MT.
For the Quarter Ending September 2021
North America
In North America, Butyl Rubber prices continued the upward trajectory during Q3 of 2021 owing to the recovered demand from both the international and domestic markets. During the hurricane season, supply was affected as most of the refineries were shut as a part of emergency plan for almost around 2 weeks. Hence, prices of Butyl Rubber shot up followed by the constrained supply and firm demand from the downstream sectors in this timeframe. Furthermore, volatility in the value of crude oil also influenced its prices throughout the quarter.
Asia Pacific
During the third quarter of 2021, Butyl Rubber prices witnessed an upward trajectory in the Asian markets backed by the robust demand from the automotive sector following the economic recovery in the post pandemic period. Recovery in the automotive sector pushed up the demand for Butyl Rubber in India as well. In addition, soaring feedstock Isobutylene and Isoprene values kept its pricing trend high throughout the quarter. Thus, Butyl Rubber IIR Mm 45-46 Ex- Ludhiana prices rose to USD 2266.65 per MT in September showcasing a significant rise since July.
Europe
In the European market, Butyl Rubber witnessed an upward trend during the third quarter of 2021 mirroring the market trend of other regions. Soaring raw materials values as well as delayed imports as an impact of Ida hurricane led to a significant hike in the prices of Butyl Rubber in this timeframe. Moreover, exorbitant freight charges and constraint availability of shipping containers further influenced the cost of Butyl Rubber in Europe.
