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.
