For the Quarter Ending June 2025
North America
• The Butyl Rubber Spot Price in North America decreased by 10.71% quarter-over-quarter in Q2 2025, reflected in a bearish Price Index.
• The Butyl Rubber Price Index in the U.S. continued to decline through Q2 2025, reflecting persistent bearish sentiment across the market.
• A combination of ample inventory levels and limited demand from key downstream sectors like automotive and construction suppressed market momentum.
• Production costs witnessed fluctuations, but the impact of rising feedstock prices in June was outweighed by prior months’ lower input costs and weak demand.
• Buyer confidence remained low, influenced by economic and trade policy uncertainty, including the upcoming expiration of a 90-day tariff suspension.
• Most buyers followed a conservative procurement approach, purchasing only based on immediate needs and avoiding long-term or bulk commitments.
• Export activity was limited, weighed down by trade-related concerns, reducing sellers’ ability to offload surplus inventory.
• Suppliers adjusted ex-quotations downward throughout the quarter to stimulate interest, reinforcing the downward trajectory of the Price Index.
Why did the price of Butyl Rubber change in July 2025 in the US?
• The Butyl Rubber Spot Price in the U.S. edged upward in July due to a slight rebound in the market activity.
• A rise in feedstock isobutylene costs led to an uptick in the Butyl Rubber Production Cost Trend, supporting the price increase.
• The Butyl Rubber Demand Outlook showed signs of mild recovery, prompting limited restocking activity.
• Based on current fundamentals, the Butyl Rubber Price Forecast suggests stable-to-slightly bullish pricing if modest demand continues into the next quarter.
APAC
• The Butyl Rubber Spot Price in APAC decreased by 1.20% quarter-over-quarter in Q2 2025, reflected in a bearish Price Index.
• The Butyl Rubber Price Index in Singapore showed fluctuating behavior through the quarter, alternating between upward and downward movements.
• In April, the Price Index rose due to limited supply and steady end-user demand, despite declining production costs and weak domestic automotive activity.
• May saw a decline in the Price Index, primarily due to sufficient inventories, cautious buyer behavior, and softened international demand amid trade-related uncertainties.
• The Price Index moved upward again in June as buyers increased procurement, anticipating policy shifts and potential trade disruptions, especially related to upcoming tariffs.
• Overall, the quarter was shaped by unstable trade conditions, shifting demand across sectors, and periodic supply shortages, resulting in a volatile but active market environment.Why did the price of Butyl Rubber change in July 2025 in APAC?
• The Butyl Rubber Spot Price in APAC saw a slight uptick in July due to a surge in the domestic as well as overseas markets.
• The Butyl Rubber Production Cost Trend remained relatively steady, but minor increases in feedstock and energy costs provided upward pressure on overall pricing.
• The Butyl Rubber Demand Outlook improved marginally, supported by renewed interest from the automotive and construction sectors in countries like China, India, and Southeast Asia.
• Given the shifting supply-demand dynamics and policy uncertainties in international trade, the Butyl Rubber Price Forecast for the region reflected a cautiously bullish trend, with prices expected to remain firm if regional demand continues to recover.
Europe
• The Butyl Rubber Spot Price in Europe decreased by 2.97% quarter-over-quarter in Q2 2025, reflected in a bearish Price Index.
• The butyl rubber Price Index in Russia fluctuated over the quarter, starting with a slight increase in April due to low inventories and stronger domestic demand, despite a decline in production costs.
• In May, the Price Index dropped as supply stabilized and production costs continued to fall. Demand weakened from both local and international buyers, resulting in cautious procurement.
• June saw a further decline in the Price Index, driven by high inventory levels, weak export activity, and reduced confidence in downstream sectors like automotive.
• Broader economic uncertainty, a strong ruble, and reduced consumer spending contributed to the bearish market tone, keeping demand subdued.
• Suppliers responded to sluggish trading conditions by lowering their ex-quotations in an attempt to stimulate buying interest, but market activity remained limited.
• Overall, the quarter was characterized by a gradual downward shift in the Price Index, shaped by oversupply, weak demand, and cautious buyer sentiment.
Why did the price of Butyl Rubber change in July 2025 in Europe?
• The butyl rubber Spot Price in Europe began to edge upward in July as producers responded to a modest rebound in procurement from regional buyers.
• Although the butyl rubber Production Cost Trend remained relatively stable, marginal increases in energy and logistics costs created mild cost-side pressure that influenced supplier pricing decisions.
• The butyl rubber Demand Outlook showed early signs of improvement, which supported better utilization of available supply.
• According to the latest butyl rubber Price Forecast, analysts expect a gradual firming of prices in the short term, provided demand continues to recover and supply remains in balance with market needs.
MEA
• The Butyl Rubber Spot Price in the Middle East decreased by 4.78% quarter-over-quarter in Q2 2025, reflected in a bearish Price Index.
• The butyl rubber Price Index in Saudi Arabia began the quarter with an upward movement in April, driven by a supply-demand imbalance and steady regional demand, despite lower production costs.
• Domestic industrial activity remained consistent under national development initiatives, and modest international interest, especially from Asia, supported positive market sentiment early in the quarter.
• In May, the Price Index declined as inventories became sufficient, production costs eased further, and both domestic and overseas buyers showed reduced interest.
• Buyer behavior remained conservative, with market participants focusing on short-term needs and avoiding large-volume commitments.
• By June, the Price Index continued to fall due to weak demand, high inventory levels, and ongoing global economic uncertainty.
• Export activity remained muted, and the market saw little momentum from downstream sectors, leading suppliers to reduce their quotations to maintain competitiveness.
• Overall, the quarter was characterized by shifting sentiment, with early bullishness giving way to sustained bearish pressure by the end.
Why did the price of Butyl Rubber change in July 2025 in the Middle East?
• A modest rise in the butyl rubber Spot Price was observed as regional producers adjusted quotations upward in response to improved downstream offtake.
• The butyl rubber Production Cost Trend showed marginal upward movement due to increased input prices, contributing to firming price levels across local markets.
• Regional consumption improved slightly, and the butyl rubber Demand Outlook turned more optimistic.
• Based on current fundamentals and emerging trade dynamics, the butyl rubber Price Forecast suggests a stable-to-firm near-term pricing environment.
For the Quarter Ending March 2025
North America
• The Butyl Rubber Spot Price in North America exhibited mixed trends throughout Q1 2025, influenced by multiple factors. The overall Butyl Rubber settled by 3.77% declined in Q1 2025 compared to previous quarter.
• January: Market stable due to rising feedstock costs and better construction offset by weak auto demand and weather disruptions; ample inventory kept prices steady.
• February: Bullish trend as automotive sector revived and buyers stocked up ahead of trade tensions, pushing demand and prices higher.
• March: Bearish shift with lower production costs, sufficient stock, and improved logistics; suppliers reduced prices due to soft demand.
Why did the price of Butyl Rubber change in April 2025 in the US?
• In April 2025, the Butyl Rubber Price Index decreased. This was due to reduced production costs and ample inventory levels, which outweighed bullish factors like rising feedstock costs and improvements in the construction sector.
• The Butyl Rubber Production Cost Trend showed a decline in March, easing cost pressure and enabling suppliers to lower prices.
• The Butyl Rubber Demand Outlook was mixed: a revival in the automotive sector and proactive buying ahead of trade tensions in February pushed demand up, but weaker automotive demand and sufficient stocks in March softened procurement.
• The Butyl Rubber Price Forecast for the coming months anticipates continued volatility due to fluctuating supply-demand dynamics and external economic influences.
Europe
• The Butyl Rubber Spot Price in Europe exhibited mixed trends throughout Q1 2025, influenced by multiple factors.
• January-February: Market stable in January despite rising feedstock costs and high interest rates that limited demand and investment; in February, demand from Asian exports after Lunar New Year boosted prices and production, creating a bullish trend despite weak domestic conditions.
• March: Market turned bearish as lower feedstock costs cut production expenses, but demand recovery remained weak; steady supply and smooth trading led suppliers to reduce prices.
Why did the price of Butyl Rubber change in April 2025 in the Europe?
• In April 2025, the Butyl Rubber Price Index increased by 1% due to some recovery in domestic automotive demand despite significant drop in feedstock costs, which lowered production expenses.
• The Butyl Rubber Production Cost Trend was downward in March, prompting suppliers to adjust quotations downwards amid sufficient inventory and stable supply.
• The Butyl Rubber Demand Outlook was influenced by weak domestic economic conditions and high interest rates, which limited investment and curbed demand, though export demand from Asia provided some bullish support in February.
• The Butyl Rubber Price Forecast suggests a softening market ahead unless there is a notable improvement in downstream sectors or feedstock price recovery.
APAC
• The Butyl Rubber Spot Price in APAC showed mixed movements throughout Q1 2025.
• January-February: Market was stable to bullish; higher feedstock costs and pre-holiday stock buildup balanced weak auto and construction demand in January, while February saw firm prices supported by limited spot supply and post-holiday trading despite softer demand and lower production costs.
• March: Market turned bearish due to falling feedstock costs, weak demand, and sufficient inventory; suppliers cut production and lowered prices as recovery in automotive, and construction was not strong enough to boost the market.
Why did the price of Butyl Rubber change in April 2025 in the Asia?
• In April 2025, the Butyl Rubber Price Index increased by 1.6% due to recovery signs in automotive and construction despite declining feedstock costs.
• The Butyl Rubber Production Cost Trend was downward in March, aligning with soft demand and ample inventory levels.
• The Butyl Rubber Demand Outlook remained cautious, with initial bullish sentiment in February supported by limited spot supplies and post-holiday trading, but overall demand softness prevailed.
• The Butyl Rubber Price Forecast indicates potential continued pressure on prices unless demand significantly improves.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Butyl Rubber market faced persistent bearish sentiments, influenced by multiple economic and market factors. October began with declining production costs, driven by reduced feedstock Isobutylene prices, which contributed to lower market values. Despite a slight uptick in demand from the automotive sector, weaker performance in the tire sector and subdued downstream interest weighed heavily on overall demand. Market participants adopted a cautious stance due to uncertainties surrounding the upcoming presidential election, leading to reduced trading activity and scaled-back production.
In November, bearish trends continued as year-end destocking efforts dominated market dynamics. Ample inventories and reduced demand from the automotive and construction sectors limited new orders, while the victory of Donald Trump in the presidential election further impacted sentiment. Anticipation of policy changes, coupled with deregulation-focused strategies, contributed to lower commodity prices and reinforced the market's cautious tone.
By December, seasonal slowdowns in the construction sector and constrained automotive demand sustained the bearish outlook. Businesses remained hesitant to initiate new projects, awaiting clarity on potential policy shifts. Destocking activities, ample inventories, and reduced feedstock costs collectively highlighted the complex interplay of economic, political, and market factors shaping the US Butyl Rubber market.
APAC
In Q4 2024, the Butyl Rubber market in the APAC region faced bearish sentiments due to a mix of economic and industry-specific factors. In October, the market experienced a slight decline, driven by reduced production costs following lower feedstock Isobutylene prices and sufficient inventory levels that met demand. Easing congestion at major ports, including Qingdao, improved supply chain fluidity, further reinforcing the bearish outlook as supply pressures eased. Producers adjusted production rates to align with weak demand, maintaining stable logistics but limiting price movement. November witnessed a stable market, with mixed sentiments. While the downstream automotive sector showed improvement, demand from the tire and construction sectors remained subdued due to ample inventory levels. Reduced feedstock costs helped moderate any potential price increases, and domestic production and imports maintained steady supply, resulting in a restrained trading atmosphere. In December, the market exhibited a sharp decline, despite rising feedstock costs and improved automotive sector performance. Concerns over economic growth, trade policies, and potential US tariffs dampened market confidence, as did cautious behavior among participants. The pre-holiday rush and port congestion failed to drive prices upward due to subdued demand and sufficient inventories, highlighting the market’s continued bearish trend.
Europe
In Q4 2024, the European Butyl Rubber market experienced fluctuating sentiments influenced by supply-demand dynamics, economic conditions, and downstream sector performance. In October, the market showed bullish momentum as rising demand from both domestic and international markets, particularly India, offset declining production costs from lower feedstock Isobutylene prices. Insufficient inventories led producers to increase output, while strong trading activity, driven by new overseas orders, bolstered the market’s optimistic outlook. November sustained this upward trend despite broader economic challenges, including labor shortages, high inflation, and elevated interest rates, which created a challenging economic environment. Increased overseas demand supported market stability, while inventory levels remained inadequate to meet downstream requirements. However, economic pressures, including a record 21% interest rate, raised concerns about borrowing costs and business investment. In December, the market shifted to bearish sentiments. Despite rising production costs and improved performance in the automotive sector, limited new orders, year-end destocking activities, and cautious procurement by buyers suppressed demand. Employment and business confidence also declined, further contributing to the downturn. These factors highlight the complex interplay of supply shortages, economic uncertainties, and cautious market behavior in shaping the Butyl Rubber market’s dynamics in Russia.
MEA
In Q4 2024, the Butyl Rubber market in Saudi Arabia experienced fluctuating trends shaped by shifting demand, supply constraints, and downstream sector performance. In October and November, the market displayed bullish momentum due to strong demand from the Automotive and Construction sectors, supported by the ongoing Vision 2030 initiative and overseas interest. Supply chain disruptions, including Red Sea diversions, created a supply-demand imbalance, leading producers to increase output. Positive business sentiment and stable economic conditions further reinforced the upward trend, with companies ramping up procurement to meet growing demand. In December, the market shifted to bearish sentiments. Despite rising production costs and improvements in the Construction sector, year-end destocking activities and reduced new orders from domestic and international buyers suppressed demand. Efficient supply chain operations, characterized by faster delivery times and improved inventory management, further contributed to market stability but did not prevent the downward trend. Ample inventories and cautious procurement by buyers weighed on the market, reflecting a more efficient but subdued trading atmosphere. This period highlights the interplay of demand fluctuations, supply chain dynamics, and inventory management in shaping the market, with strong initial growth giving way to bearish sentiments toward year-end.
For the Quarter Ending September 2024
North America
The Butyl Rubber pricing landscape in North America during Q3 2024 witnessed a significant uptrend, marked by increasing market prices driven by a confluence of factors. The market dynamics showcased bullishness despite the declining production cost of the commodity due to the decrease in the prices of the feedstock, Isobutylene. The heightened costs of the commodity, despite typical downward pressures from falling production expenses, were counterbalanced by robust demand from key industries, notably the automotive sector.
The surge in demand from downstream players led to a tightening supply situation, further propelling prices upwards. In the USA specifically, the market experienced the most substantial price changes, with a notable -3% decrease from the previous quarter. The correlation between increased demand and rising prices was evident throughout the quarter, reflecting a positive pricing environment.
Despite disruptions like the first Atlantic hurricane and cyberattacks affecting operations, the market remained resilient. The quarter concluded with Butyl Rubber MV 32-51 prices at USD 2150/MT DEL Texas, underscoring the overall bullish trend in pricing.
APAC
In Q3 2024, the Butyl Rubber market in the APAC region remained stable, with prices showing minimal fluctuations. Various factors influenced market prices during this quarter, including consistent demand from downstream sectors, and balanced supply levels. Notable disruptions occurred in the supply chain due to unforeseen events, such as severe weather conditions which briefly impacted market dynamics. However, overall, the market maintained its equilibrium, supported by steady demand from key industries. Singapore, in particular, witnessed the most significant price changes in the region. Despite this, the market trend remained stable, reflecting a resilient pricing environment. Seasonal factors and correlation patterns played a crucial role in price stability, ensuring that the market maintained a positive sentiment throughout the quarter. The quarter-ending price for Butyl Rubber MV 32-51 FOB Jurong in Singapore stood at USD 2090/MT, indicating a consistent and stable pricing environment in the APAC region during Q3 2024.
Europe
In Q3 2024, the Butyl Rubber market in Europe experienced fluctuating pricing trends driven by several key factors. The overall sentiment was influenced by changes in production costs, overseas demand, and feedstock price fluctuations, particularly isobutylene. In July, prices witnessed an upward trend due to higher production costs and strong export demand, particularly from regions like China and India, despite weaker domestic demand. By August, the market sentiment turned bearish as production costs declined and global demand weakened, leading to oversupply and price softening. The improved domestic automotive sector in Europe mitigated some of the negative effects, but the overall market remained under pressure. In September, while local demand remained stable, sluggish global trade flows continued to impact prices negatively. Supply chain disruptions and inventory buildup led to discounted prices, as market players sought to stabilize pricing. Overall, Q3 2024 experienced a combination of bullish and bearish forces, with heightened volatility reflecting global economic conditions and feedstock price shifts.
Frequently Asked Questions (FAQs):
1. What are the main applications of Butyl Rubber in industrial sectors?
Butyl rubber is widely used in tire inner liners, pharmaceutical closures, adhesives, sealants, and protective clothing due to its excellent impermeability and chemical resistance.
2. Who are the top Butyl Rubber producers globally?
Leading global producers include ExxonMobil (USA), Lanxess AG (Germany), PJSC Nizhnekamskneftekhim (Russia), and JSR Corporation (Japan).
3. What factors influence the Butyl Rubber Spot Price?
Key influences include feedstock price trends, production costs, regional supply-demand balance, freight rates, and consumption from end-use sectors such as automotive and construction.
4. What is the Butyl Rubber Demand Outlook for the rest of 2025?
Demand is expected to gradually improve, driven by a modest recovery in infrastructure and manufacturing activities, though policy shifts and inflationary pressure may temper growth momentum.
