For the Quarter Ending September 2022
North America
The prices for Halo Butyl Rubber started to increase in July 2022, but then they steadily decreased in the remaining third quarter of 2022 in the North American market. The leading cause of the price drop for Halo Butyl Rubber was weak downstream demand from the automotive and tire sectors. Due to semiconductor shortages, the automotive industry underperformed in the market, which negatively affected Halo Butyl Rubber's offtakes during this quarter. Additionally, the market value of Halo Butyl Rubber was severely diminished by declining freight charges, which reduced overall imported prices. Furthermore, supply was regular, and the inventories were abundantly available. Altogether, poor demand, lesser freight rates, and abundant inventories caused the Halo Butyl Rubber prices to drop during the quarter.
APAC
The third quarter of 2022 witnessed continued instability in Halo Butyl Rubber prices in Asia-Pacific because of shifting dynamics between supply and demand. The prices of Halo Butyl Rubber increased in July, decreased in August, and then increased again in September 2022. The rise in industrial production rates, surplus supply, and overflowing stocks were the main factors contributing to the August price fall for Halo Butyl Rubber. Weak downstream demand from the construction and tire industries further supported this trend. In September, the market experienced supply issues, supply chain disruptions, and a rise in demand, which changed the pricing trend of Halo Butyl Rubber. Conclusively, supply issues, lower inventories, and revived demand contributed to the price resurge of Halo Butyl Rubber in APAC.
Europe
In the third quarter of 2022, prices for Halo Butyl Rubber in the European market began to decline progressively after starting to rise in July 2022. Weak downstream demand from the automobile and tire industries was the key factor contributing to the price decline for Halo Butyl Rubber. Due to shortages of semiconductors and the underperformance of the automobile industry in the market, Halo Butyl Rubber sales suffered during this quarter. The market value of Halo Butyl Rubber was also significantly reduced by the sharp decline in freight rates, which lowered the overall pressure on imported material. Additionally, the supply was consistent, and there was an abundance of stockpiles. The price of Halo Butyl Rubber decreased because of decreased demand, lower freight costs, and large stocks.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Halo Butyl Rubber prices increased consistently in the US market due to the firm production cost. Optimistic sentiment in the raw material market and turmoil in the energy market contributed to the soaring Halo Butyl Rubber prices. Meanwhile, demand dynamics from the downstream Tyre and the adhesives industries have improved. The automotive industry saw a jump in production after an underwhelming 2021. however, growing fears of a US recession may hamper the optimistic market sentiment in the region. As a ripple effect, Halo Butyl Rubber's price climbed by 2.6%, and its prices were assessed at USD 3072 per MT on a FOB basis in the USA.
Asia-Pacific
Halo Butyl Rubber prices have witnessed a downward trend in the Asia-Pacific region throughout the second quarter of 2022 due to suspended manufacturing activities in China since Q1 of 2022. Additionally, diminished demand from the downstream industries has other facets for the price decline. Moreover, traders revealed the surplus of inventories due to crippled offtakes in the market that compelled them to adjust their offers to sustain the average margin. The hampered regional operational activities impacted market sentiments amidst a rise in Covid-19 cases in the region. As a ripple effect, prices of Halo Butyl Rubber are quoted at USD 2895/MT on a CFR basis in China.
Europe
Europe has been stuck in the tight grip of inflation, and the elastomer market has been no different. All key elastomers have been witnessing an upward trajectory in the pricing sentiment. Halo Butyl Rubber prices have also risen in the European market throughout the second quarter of 2022. In addition, suppliers and buyers have been unwilling to be drawn into lengthy monthly contract discussions, given the sharp trend of the HBR prices. On the other side, raw material costs have constantly been rising as crude oil and LNG prices have been mounting since the beginning of the Russia-Ukraine war and the European attempt to limit dependency on the Russian supply of energy feedstock. Meanwhile, demand from downstream has been stable to weak despite consistently rising prices. Moreover, transportation and logistics have also been hampered since the beginning of the European conflict. As a ripple effect, HBR prices were assessed at USD 2841 per MT on CFR basis for BIIR grade.
For the Quarter Ending March 2022
North America
Halo 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, Halo 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 HBR. 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.
Asia Pacific
Halo Butyl Rubber market has been termed as bearish Q1 of 2022 in the Asia Pacific. Halo 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 HBR prices rebounded in the first week of March and were assessed at INR 206500 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 HBR 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.
Europe
During the first half of Q1, Halo Butyl Rubber prices in Europe continued to decline till the mid-February assessments, where HBR 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 HBR 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 concluded the quarter at Euro 2570 per MT (USD 2775 per MT) on an FOB basis.
Robust demand from downstream tire industry and consistently risen feedstock prices have culminated into a strong quarter for HBR 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.
HBR prices have increased in Indian domestic market during the initial stages of Q4 stemming from increased demand from downstream tire industry. However, HBR prices stabilized during the H2 of Q4 as the demand stagnated from tire and other allied industries. HBR 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. HBR 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.
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 Halo Butyl Rubber (HBR) 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.
