For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Chlorosulphonated Polyethylene Rubber Price Index in APAC declined by 8.2% quarter-on-quarter, with FOB Qingdao quotations dropping from USD 3,780/MT in early April to USD 3,910/MT by the end of June 2025. The quarter saw uneven price movement, with April and May witnessing a downward trend of -4.4% and -0.5% respectively, while June rebounded with a 4.0% price increase amid rising production costs and supply-side challenges.
• Why did the price of Chlorosulphonated Polyethylene Rubber change in July 2025 in APAC?
In early July 2025, the Price Index held firm, underpinned by steady demand from the automotive and construction sectors across China and Southeast Asia. Price pressures from earlier in the quarter were offset by moderate feedstock stabilization and some easing in freight rates, though logistics remained fragile.
• The Chlorosulphonated Polyethylene Rubber Price Forecast for early Q3 2025 suggests a cautiously bullish trend, driven by seasonally stronger automotive output, improving infrastructure activity, and expectations of further disruptions in feedstock and container availability.
• The Chlorosulphonated Polyethylene Rubber Production Cost Trend showed significant volatility. Feedstock HDPE availability tightened in late Q2 due to upstream crude oil price spikes and production issues. Rising sulfuric acid costs and widespread logistics disruptions—including Red Sea vessel rerouting and inland transport delays—further inflated production and delivery expenses.
• The Chlorosulphonated Polyethylene Rubber Demand Outlook remained stable, with consistent offtake from the construction and automotive sectors. Growth in China’s NEV segment and steady demand for waterproofing and sealing materials helped offset sluggish downstream orders from India and Japan. Medium-term demand fundamentals remain structurally strong.
• China’s export performance showed mixed signals, as firm intra-Asia demand sustained outbound shipments despite weaker interest from South Asia. Buyers in India reduced procurement due to inventory buildup and local substitution, while Southeast Asia saw improved cross-border movement due to relaxed freight conditions.
• Domestic consumption in China’s coastal regions such as Jiangsu, Zhejiang, and Guangdong remained solid, buoyed by activity in roofing, automotive gaskets, and cable sheathing. These gains were amplified by seasonal infrastructure works and NEV production upticks, even as some producers faced cost-push constraints from raw material and logistics fronts.
North America
• Chlorosulphonated Polyethylene Rubber Price Index in North America declined modestly on a quarter-on-quarter basis. The quarter opened with downward momentum in April and May, driven by subdued automotive demand, rising logistics expenses, and trade-related disruptions. However, prices stabilized in June as supply-demand fundamentals balanced out amid improved construction activity and steady inventory levels.
• Why did the price of Chlorosulphonated Polyethylene Rubber change in July 2025 in North America?
In early July, the Price Index remained stable, supported by consistent demand from tire and construction sectors. Easing crude oil and feedstock prices helped contain cost pressure, while calmer geopolitical conditions helped normalize freight and import activity.
• The Chlorosulphonated Polyethylene Rubber Price Forecast for early Q3 2025 indicates a stable to slightly bullish outlook. Seasonal risks such as hurricane-related disruptions and potential tariff escalations could tighten supply, although demand-side fundamentals are expected to remain steady.
• The Chlorosulphonated Polyethylene Rubber Production Cost Trend showed a marginal decline over the quarter. Lower upstream feedstock values improved margins, although persistent freight volatility, Gulf Coast port congestion, and Red Sea rerouting continued to add complexity to production logistics and cost planning.
• The Chlorosulphonated Polyethylene Rubber Demand Outlook remained structurally firm. Automotive output rebounded toward the end of Q2, led by growing EV and light truck production, while construction activity held strong due to infrastructure-led spending. Downstream applications in sealing, cable insulation, and roofing materials continued to support baseline demand.
• Imports and Exports of Chlorosulphonated Polyethylene Rubber experienced limited but notable shifts. Trade activity was impacted by the removal of tariff exemptions and changing U.S. policy on lower-value imports. However, improvements in domestic warehousing and predictive logistics helped ensure stable distribution.
• Global Trade Outlook: Shipments from Asia and Europe faced cost and compliance pressures, prompting North American buyers to reevaluate sourcing strategies. While chemical bulk trade remained functional, long-haul supply chains continued to adjust under new tariff regimes and higher container costs.
Europe
• Chlorosulphonated Polyethylene Rubber Price Index in Europe declined modestly quarter-on-quarter during Q2 2025. Initial price firmness gave way to a gradual downturn in May and June, shaped by softer feedstock costs, weakened construction demand, and escalating logistics issues. Despite resilient offtake from automotive applications, overall sentiment remained subdued amid broad macroeconomic headwinds and trade flow disturbances.
• Why did the price of Chlorosulphonated Polyethylene Rubber change in July 2025 in Europe? In early July 2025, the Price Index stabilized as supply-demand fundamentals reached equilibrium. While automotive demand continued to support procurement—particularly for electric vehicle components—feedstock price softness and persistent logistical inefficiencies limited any upside movement.
• The Chlorosulphonated Polyethylene Rubber Price Forecast for early Q3 2025 signals a cautiously neutral to slightly soft outlook. The pace of recovery remains dependent on improvements in inland and port logistics, along with sustained demand from the EV and industrial sealing segments. Construction-related weakness, especially in residential projects across Germany and France, may continue to cap upward price traction.
• The Chlorosulphonated Polyethylene Rubber Production Cost Trend reflected mixed signals in Q2. Easing crude oil prices offered some raw material cost relief, but these were counterbalanced by higher inland transport charges and regulatory freight surcharges. Supply chains were further constrained by port congestion and extended lead times, which increased delivery-related expenses for producers and converters.
• The Chlorosulphonated Polyethylene Rubber Demand Outlook remained relatively firm in core end-use sectors. Automotive industry demand, particularly for EV tires, gaskets, and sealing systems, sustained baseline consumption. Conversely, construction activity faltered amid high interest rates and inflation, curbing demand for waterproofing and insulation materials. Some support came from public infrastructure works and retrofit projects.
• Imports and Exports of Chlorosulphonated Polyethylene Rubber across Europe were constrained by ongoing freight disruptions. Strikes, port congestion, low water levels in the Rhine, and rail infrastructure challenges delayed shipment schedules and inflated transport costs, contributing to inventory mismatches and regional supply imbalances.
• Regional demand dynamics were uneven. Northern European markets like Germany and France faced headwinds from construction stagnation and weak consumer activity, while Italy, Belgium, and parts of Eastern Europe showed relatively firmer demand for automotive and industrial applications. These regions helped offset broader softness and maintained moderate procurement levels despite prevailing supply chain and economic challenges.
For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. automotive market showed strong momentum, positively influencing demand for Chlorosulphonated Polyethylene (CSM) Rubber. CSM, widely used in gaskets, seals, and hoses, saw steady demand due to consistent light truck sales, which rose 8.9% in January, 0.8% in February, and surged 11.1% in March. Overall vehicle sales climbed sharply in March by 9.1% year-on-year, driven by pre-tariff buying ahead of the U.S. imposing a 25% import duty in April. Despite a minor sales dip in February (down 2.3% y/y), the quarter closed on a high, maintaining strong downstream activity across the automotive sector.
At the same time, feedstock dynamics influenced CSM production costs. Sulphuric acid prices steadily increased from January through March, adding upward pressure on input costs. In contrast, chlorine prices remained relatively stagnant across the quarter, balancing out some of the feedstock-related inflation. Despite logistical challenges and tariff uncertainties, stable production and healthy demand supported CSM rubber market stability in Q1, with the automotive industry remaining a key growth driver, particularly in light vehicle manufacturing and hybrid vehicle applications.
APAC
In Q1 2025, the APAC Chlorosulphonated Polyethylene Rubber (CSM) market experienced a mixed yet overall downward price trajectory, shaped by shifting supply dynamics, evolving raw material costs, and resilient demand from the automotive and industrial sectors.
January began with a modest price increase of 1.7%, driven by firm demand and stable domestic supply in China. Logistical challenges ahead of the Lunar New Year tightened short-term availability, supporting prices despite fluctuations in raw material markets, particularly sulfuric acid.
February saw price stabilization, with production and raw material supply—especially polyethylene and chlorine—remaining consistent. While sulfuric acid prices edged higher, they did not significantly strain overall production economics. Demand from automotive and industrial sectors continued its seasonal recovery, with India's import activity reinforcing regional offtake.
In March, the market reversed course with a sharp 7.87% price decline, despite sustained demand. This was largely attributed to improved supply availability and reduced chlorine prices, which softened input cost pressure. Port congestion in Shanghai did raise logistics concerns but had minimal impact on material availability due to rerouting efficiencies.
Overall, Q1 closed with a net bearish price trend, shaped by ample supply and mixed raw material pressures, though underlying demand fundamentals remained robust—particularly from the growing automotive sector in China and India.
Europe
In Q1 2025, the UK automotive industry exhibited mixed performance but ultimately closed strong, positively impacting demand for Chlorosulphonated Polyethylene (CSM) Rubber, widely used in under-the-hood and weather-resistant automotive components. After a subdued start in January and February, with passenger car sales declining 2.5% and 1.0% year-on-year respectively, March saw a robust rebound with a 12.4% increase, driving quarterly sales up by 6.4%. This recovery was largely fuelled by a surge in electric and hybrid vehicle sales, ahead of impending tax changes set to increase ownership costs. Battery electric vehicles (BEVs) rose 41.6% in January, 41.7% in February, and 43.2% in March, reflecting growing demand for low-emission vehicles, which typically use more rubber-based components like CSM in sealing and insulation applications.
Meanwhile, feedstock dynamics impacted CSM production economics. Sulphuric acid, a key raw material, experienced a steady price incline from January to March, adding pressure to production costs. Conversely, chlorine prices remained relatively stable throughout the quarter. Despite early market softness and regulatory uncertainties, strong March sales and the shift toward electrification supported stable downstream demand for CSM rubber in Europe’s automotive sector.
Frequently Asked Questions (FAQs):
1. What is the current price of Chlorosulphonated Polyethylene Rubber in APAC?
By the end of Q2 2025, Chlorosulphonated Polyethylene Rubber prices in APAC stood at approximately USD 3910/MT FOB Qingdao.
2. Why did Chlorosulphonated Polyethylene Rubber prices change in July 2025?
o APAC: Prices held steady due to stable demand from automotive and construction sectors, with easing feedstock and freight pressures.
o North America: Stable pricing driven by consistent tire and construction demand, alongside lower input costs and normalized trade flows.
o Europe: Prices stabilized as steady automotive demand offset weak construction activity and ongoing logistics issues.
3. How do regional markets differ in Chlorosulphonated Polyethylene Rubber demand?
• APAC: Stable demand led by NEVs, waterproofing, and construction, despite weaker orders in India and Japan.
• North America: Firm demand supported by EV growth, infrastructure projects, and applications in sealing and insulation.
• Europe: Automotive sector drove demand, while residential construction lagged; public works provided partial offset.
