For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Halo Butyl Rubber (HBR) witnessed a period of price adjustments within a context of shifting demand and supply dynamics. The quarter started with prices seeing a dip before a rebound in mid-January, hinting at the volatility of the market.
Despite the growth in U.S. car sales, broader economic challenges pressured the market, leading to fluctuations in HBR prices. Prices peaked in early February, driven by upticks in exporting nations' prices and positive automotive sales in Mexico. However, as the quarter progressed, there was a gradual decline, with prices settling at USD 2560 USD per MT for BIIR grade on FOB – Texas basis by March end.
The tire sector experienced a downturn, which, along with sufficient inventory levels, led to the de-escalation of prices. The automotive sector's resilience, contrasting with the tire industry's slowdown, created a complex pricing landscape for HBR. Market players navigated these conditions by destocking, adjusting input purchasing strategies in response to reduced industrial production, and aligning with the evolving Automobile and Construction sectors' demands. The quarter concluded with prices stabilizing, reflective of a market striving to find balance amid varied industrial activities and cautious supplier behaviour, ultimately maintaining a steady price level in March 2024.
APAC
The Asia – Pacific Halo Butyl Rubber (HBR) market in the first quarter of 2024 displayed notable steadiness, ending March with a consistent price of USD 2905 per MT for CIIR grade on CFR – Shanghai basis. The quarter was marked by fluctuating demands, particularly from the automotive and tire sectors, which saw various peaks and troughs due to economic shifts and seasonal impacts such as the Chinese New Year holiday. Despite these oscillations and an overall economic pressure, the market absorbed the impacts without substantial disruptions to price stability. At times, production rates adjusted in response to lower demands during holiday periods, yet as the quarter progressed, suppliers effectively managed inventories against the backdrop of a recovering downstream tire industry. This careful inventory management and the gradual resurgence in automotive demand contributed to maintaining the equilibrium between supply and demand. Hence, the price remained unaffected in March, signalling a robust market adept at navigating through the dynamics of supply chain and consumer demand within the APAC region.
Europe
The European Halo Butyl Rubber (HBR) market experienced a dynamic first quarter in 2024. Prices initially saw an uptrend, reaching a peak in February, attributed to various market pressures, including the abrupt end to EV incentives in Germany, which led to a slump in new car registrations. Mid-quarter, the prices reached their zenith at USD 3350 per MT for CIIR grade on CFR – Hamburg basis, before a course correction brought them down to USD 3130 per MT by the end of March. Throughout the quarter, the European automotive sector faced challenges, mirrored by the volatile HBR prices. However, a consistent demand from the pharmaceutical sector provided some stability to the market. Suppliers navigated through these conditions, managing inventories against fluctuating demand, leading to stable prices in March. The equilibrium achieved in HBR prices at the close of the quarter suggests a cautious but balanced market, with industry players adapting to the changing economic environment and maintaining steady supply amidst moderate demand from the automotive industry.
For the Quarter Ending December 2023
North America
During the current quarter of 2023, Halo Butyl Rubber prices for North America witnessed a mixed trend due to various factors. When compared with the previous week, the market situation remained bearish due to a surplus supply of the product from manufacturing units. The United Auto Workers (UAW) strike against Detroit's major manufacturers resulted in a drop in car sales and production in the US market, which would eventually result in a decline in demand.
However, the end of the strike in October 2023 lead to a surge in automobile production and an increment in off-take of Halo Butyl Rubber towards the start of the quarter. The market situation turns bullish in November due to the arrival of the New Year and ongoing festivities, which drive up the demand for Halo Butyl Rubber in the market.
The price of Halo Butyl Rubber BIIR DEL Texas in the USA for Dec 2023 was USD 2660/MT. Suppliers in US are tasked with managing excess inventory effectively within this context. The HBR market encountered downward price pressure due to subdued product procurement activities during the Christmas holidays, influenced by reduced consumption of material from downstream industries involved in the production of diverse Tire and automotive parts materials.
APAC
The Q4 2023 saw the pricing of Halo Butyl Rubber in the APAC region remained stable with moderate demand from the tire and automotive sectors. The supply chain of the product remained smooth throughout the quarter without any disruption. However, the rise in energy prices increased the overall production cost of the product. The Japanese market witnessed a stable supply trend, but the demand from the tire manufacturing sector was healthy, while the demand from the automotive sector was moderate to low, leading to a price decline of 3.2% in December 2023. The trend, seasonality, and correlation price percentage for Japan in Q4 2023 showed a declining trend, with a correlation of -0.78%. The price percentage change from the same quarter last year was -5%, while the price percentage comparison of the first and second half of the quarter was -1%. No plant shutdown was reported during the quarter. The overall pricing of Halo Butyl Rubber CIIR FOB Tokyo in Japan during Dec 2023 was USD 2790/MT.
Europe
The Halo Butyl Rubber market in Europe witnessed a stable supply trend during the current quarter of 2023. The moderate demand from downstream industries such as tire and automotive parts manufacturing industries remained balanced. The major feedstock Butyl rubber price weakness showcased its effect on the product. Despite enough inventory levels in the region, suppliers provided discounts on the commodity to sell their material. Improvement in the downstream manufacturing units surged demand for the product and raise market sentiments in Nov 2023. The trend, seasonality, and correlation price percentage of Belgium in the current quarter remained stable. There was a 4% decrease in prices compared to the same quarter of the previous year, while the price decreased by 12% from the previous quarter of 2023. The Dec 2023 price of Halo Butyl Rubber CIIR FOB Antwerp in Belgium for the current quarter is USD 2562/MT. Overall, the stable supply and moderate demand, along with fluctuations in feedstock prices, were the primary factors impacting the Halo Butyl Rubber market in Europe during the current quarter of 2023.
For the Quarter Ending September 2023
North America
During the third quarter of 2023, the Halo Butyl Rubber prices in the North American market displayed a mixed pattern. They witnessed a significant increase in July, followed by a consistent decline in the subsequent months. The rise in the price of Halo Butyl Rubber in the US market during July was driven by a strong demand outlook. Notably, vehicle sales in the US surged by over 20% in June, and Western Europe also saw an increase of approximately 19.6% in sales. Consequently, Halo Butyl Rubber procurement experienced a boost in July. In the United States, the Manufacturing Purchasing Manager's Index (PMI) for June recorded a value of 46.3, down from 48.4 in May. This decline in PMI was primarily attributed to a further reduction in manufacturing activity, exacerbated by a decrease in new orders, lower input costs, and an acceleration in destocking. However, the Halo Butyl Rubber market observed a noticeable decline in prices for the rest of the quarter. This depreciation in price can be attributed to the sustained decrease in the costs of the raw material, Isobutylene. The extended downward trend in feedstock prices has exerted downward pressure on the overall production expenses of Halo Butyl Rubber. Interestingly, despite robust market sentiments in the global automotive and tire sectors, the market dynamics remained skewed toward oversupply, leading to a significant dip in pricing trends.
APAC
The market trend of Halo Butyl Rubber in the Asia-Pacific region showcased a notable decline in the first month of Q3 2023, only to stabilize in August and September. The decrease in the Japanese market was mainly due to the decline in the cost of its raw materials, Isobutylene, and isoprene. Even though the automotive industry was in good condition, the significant effect of the cheaper feedstock has led to a decrease in the price trend in the Halo Butyl Rubber industry. However, according to data from the Japan Automobile Manufacturers Association, the new vehicle market in Japan saw a 17% growth in August 2023 and 11% growth in September 2023, marking a significant improvement. This positive trend in the market can be attributed to its gradual recovery from the impacts of COVID-19 lockdowns, which began to ease in the latter half of the previous year. Additionally, the availability of semiconductors improved, allowing vehicle manufacturers to increase production and reduce order backlogs. Japan's economy also performed better than expected in the second quarter of 2023, with a year-on-year growth rate of 6%. Hence, the notable surge in demand from the automotive industry counterbalanced the decline in feedstock prices and caused stability in the Japanese market.
Europe
Unlike North America and the Asia-Pacific region, the price of Halo Butyl Rubber fell consistently in the European market during the 3rd quarter of the year 2023. The European Halo Butyl Rubber market saw a decline, primarily attributed to a substantial downturn in the construction industry across the Eurozone. This downturn marked the most significant drop of the year. The construction slowdown was evident in the Purchasing Managers' Index (PMI) for the Eurozone construction sector, which dipped slightly from 43.5 to 43.4 in August, indicating a noteworthy reduction in industry activity. This decline in construction activity had a ripple effect, resulting in reduced demand for Halo Butyl Rubber not only in the European market but also affecting the overall demand for this product in the global market. Additionally, despite a recent period of relative price stability in Ethylene and Propylene feedstock in Europe during August and September, the continued downward price trend observed throughout July continues to have a substantial impact on the production costs associated with Halo Butyl Rubber.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, North America experienced a rollercoaster of price trends for Halo Butyl Rubber. Prices initially declined in April but then rebounded and showed an increase in May and a stable pricing trend in June. Initially, prices decreased as the U.S. automotive industry encountered difficulties due to rising interest rates and adverse economic conditions, resulting in a decrease in market demand for Halo Butyl Rubber. Furthermore, the decrease in Halo Butyl Rubber prices was supported by a steady decrease in the cost of feedstock Isobutylene and Isoprene. The U.S. automotive industry experienced an annual growth rate of over 20% in both May and June, resulting in an increase in procurement of Halo Butyl Rubbers during the latter half of the second quarter of 2023. On the other hand, the manufacturing PMI in the United States declined further in June to 46.3, following a decrease in May to 48.4. As a result, the country's contracting industrial activity further contributed to the rise in prices.
APAC
In the Asia-Pacific region, Halo Butyl Rubber prices rose steadily in the second quarter of 2023. Prices surged throughout the quarter, with the most noticeable improvement seen early in the quarter. Increased downstream demand drove Halo Butyl Rubber prices higher in April. Demand for tires increased during the month, leading to increased demand for Halo Butyl Rubber. The use of Halo Butyl Rubber also increased significantly in May due to the growth of the pharmaceutical and automotive industries. The significant growth in these areas has increased the demand for Halo Butyl Rubber and consequently increased its market value. In June 2023, Japanese Halo Butyl Rubber prices rose significantly due to increased demand in the domestic and international markets. Domestic automotive sales in June increased by 19.8% year-on-year. Procurement of Halo Butyl Rubber also continued to surge as import orders from Asian countries such as South Korea and India increased, leading to an increase in market value.
Europe
In Q2 2023, Halo Butyl Rubber prices in Europe showed a mixed pattern. Halo Butyl rubber prices initially increased in the Belgian market due to increasing demand from the worldwide market. In the international market, demand increased due to improved market performance of the automotive industry, resulting in an increase in the price of Halo Butyl Rubber. In the latter part of the quarter, demand sentiments for Halo Butyl Rubber were subdued due to the poor market performance of the construction sector. The Manufacturing PMI of the Eurozone indicated a contraction of industrial activity in several sectors. The global construction industry was hit by an increase in interest rates coupled with economic uncertainty, a decrease in new orders, and a further decrease in raw material costs s during the week. This decrease in raw material costs combined with falling energy prices resulted in a significant decrease in Halo Butyl Rubber's upstream expenses, resulting in a decrease in its market value.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Halo Butyl Rubber market displayed mixed sentiments, supported by shifting dynamics of supply and demand. Halo Butyl Rubber prices increased in February after rising marginally in January, only to drop back as the quarter's end draws near. The automotive sector began to recover as soon as the semiconductor supply in the area recovered, but it was quickly damaged by the economic unrest brought on by the failure of two significant US banks. Amidst the economic downturn's severe impact on the automobile sector, less Halo Butyl Rubber was consumed by that sector, which eventually resulted in a price decrease. Hence, the price of Halo Butyl Rubber BIIR in the USA was estimated at USD 2878/MT FOB Texas in March, which was 9.7% higher than in December.
APAC
The market for Halo Butyl Rubber in the Asia-Pacific region saw a mixed level of sentiment. The prices of Halo Butyl Rubber in Asia-Pacific remained stagnant in January, rose significantly in February, and then fell again in March. As China began to destock its automotive inventories, the Asia-Pacific region's struggling automotive industry soon began to show signs of decline. Tesla triggered a pricing war in the Chinese auto industry by lowering the market value of cars due to high inventories and low sales. This prompted other manufacturers to follow suit, which led to the destocking of cars. The manufacturing of automobiles decreased because of the automotive industry's busy destocking efforts, which also influenced the consumption of Halo Butyl Rubber. The demand in the Asian market decreased as procurement from China reduced. Hence, the evaluated price of Halo Butyl Rubber CIIR in Japan in March was USD 2875/MT FOB Tokyo.
Europe
Halo Butyl Rubber sales in Europe revealed conflicting sentiment. The price of Halo Butyl Rubbers was down in the first month of the quarter before sharply rising in the months that followed. Halo Butyl Rubber prices significantly increased in February as China's market finally started to open more. An increased supply of semiconductors helped to support this increase. Halo Butyl Rubber demand in the automotive sector increased because of increased output and increased semiconductor supply. Moreover, the European market's pent-up demand increased auto sales throughout the quarter, which eventually increased queries for Halo Butyl Rubber. As a result, in March, the Halo Butyl Rubber CIIR pricing in Belgium was USD 2969/MT FOB Antwerp.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a sustained decline in the prices of Halo Butyl Rubber in the North American market, supported by negative market sentiment and falling production costs. The demand for Halo Butyl Rubber from the downstream tire and automotive industries decreased during the quarter because of the subpar market performance in terms of sales and industrial output. Additionally, as natural gas and crude oil prices fell, so did the upstream costs associated with producing Halo Butyl Rubber, which ultimately resulted in a decline in the commodity's prices in the domestic market. As a result, the assessed price for Halo Butyl Rubber BIIR in the USA in December was USD 2624/MT FOB Texas, 11.3% less than the value in September.
APAC
Halo Butyl Rubber's market value in the Asia-Pacific region continued to plummet throughout the fourth quarter of 2022, which was fuelled by weak downstream demand and dropping production costs. Due to the unsatisfactory market performance in terms of sales and industrial output during the quarter, the demand for Halo Butyl Rubber from the downstream tire and automotive sectors declined. Additionally, since the cost of creating Halo Butyl Rubber decreased due to falling natural gas and crude oil prices, the commodity's value dropped in the domestic market. The assessed price for Halo Butyl Rubber CIIR in China in December was USD 2616/MT CFR Shanghai.
Europe
Throughout the fourth quarter of 2022, the market value of Halo Butyl Rubber in the European market kept declining due to poor downstream demand and declining production costs. The demand for Halo Butyl Rubber from the downstream tire and automotive industries decreased because of the market's disappointing performance in terms of sales and industrial output during the quarter. Additionally, amidst declining natural gas and crude oil prices, the cost of producing halo butyl rubber was reduced, lowering the commodity's value in the domestic market. Halo Butyl Rubber CIIR was estimated at USD 2606/MT FD Hamburg in December, 10.8% less than it was in September.
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.
For the Quarter Ending December 2021
North America
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.
APAC
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.
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 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.
For the Quarter Ending September 2021
North America
Halo Butyl Rubber (HBR) prices in Europe remained on an upward trend during Q3 of 2021 owing to the recovery in demand from both the international and domestic markets. Demand from the automotive and ancillary industries remained the major driver in this quarter. Halo Butyl market suffered in the US as during the hurricane season, the several manufacturers on the Gulf Coast shut down their plants as a part of contingency plan that significantly impacted the throughput during the month of September. Moreover, the rising costs of fuels and the logistical issues further led to the increment in the pricing trend of HBR in this timeframe.
Asia Pacific
During Q3 of 2021, the Halo Butyl Rubber (HBR) market experienced an upward rally backed by the sturdy demand from the downstream sectors in the Asia Pacific region. In India, an improvement in the offtakes from the downstream tyre manufactures was witnessed as the industrial activities rebounded in this quarter that led to the increment in the values of HBR. Hence, the Ex-Chennai HBR prices were pushed up to USD 3018.41 per MT from USD 2930.69 per MT during July to September. However, short supply of semiconductor chips has been restricting the actual growth of automotive sector and other linked rubber segments therefore only a marginal improvement was observed in Indian markets.
Europe
In Europe, the Halo Butyl Rubber (HBR) supplies remained tight throughout the quarter due to the delayed imports following the congestion on several ports in China as well as limited availability of shipping containers. Furthermore, firm crude prices maintained an upward pressure on HBR values in major European markets. Due to the expensive imports, merchants kept their offers raised despite of the resistance shown by the buyers for achieving more profit margins.
For the Quarter Ending June 2021
North America
Supply conditions in the USA improved as operating efficiency at several manufacturing units including Eastman Chemicals and Goodyear Tire and Rubber Co. ramped up after the devastating impact from the winter storm Uri. However, some constraints were witnessed as few manufacturing plants in the US Gulf Coast region still struggled to operate at normal rates, and the offtakes from the pharmaceutical equipment were consistent to meet the demand of the mass vaccination drives in the US. Demand surged in the second quarter of 2021, due to the improved offtakes from the tire industry and export market outlook as the production levels regained pace.
Asia Pacific
During the second quarter of 2021, Halo Butyl Rubber supplies in the Asia Pacific region were balanced due to optimum inventory levels at various plants, and lower offtakes from the downstream tire industries. The market sentiments in the Northeast Asia and China were tending more towards the replacement of Natural Rubber than Synthetic Rubber due to the environmental concerns, whereas industrial activities were restricted in India as the region stood badly impacted by the second wave of COVID. As a ripple effect the pricing trend in India showed marginal movement with domestic Bromo-Butyl Rubber priced at USD 2815 per tonne in June.
Europe
The supply conditions in the European region improved compared to the previous quarter as the number of US shipments in the region surged with better operating efficiency. Some supply hinderances were witnessed at the starting of the quarter as congestion at Suez Canal delayed some shipments. Demand surged as the offtakes improved from the automotive industry. Nizhnekamskneftekhim PJSC in Russia got approval for the modernisation and re-equipment of Halo Butyl Rubber project that will be taking its total plant capacity to 200 KTPA. FOB Hamburg Halo Butyl Rubber offers settled at USD 1930 per tonne in April.
For the Quarter Ending March 2021
North America
The supplies in the North American region were severely impacted by the freeze storm in the Texas and nearby Gulf region during mid-February. Due to the weather calamity, several major production plants including ExxonMobil, Dow, DuPont, and Good Year declared force majeure which led to the shortage in key feedstock and domestic Halo-butyl rubber in the first quarter of 2021. Demand kept a healthy stance as the offtakes from the pharmaceutical sector surged regarding end-use for vaccine vials stopper, whereas demand from the automotive sector narrowed due to reduced auto sales in the first quarter. The CFR Hamburg prices for Halo butyl Rubber averaged at USD 2450 per tonne in the quarter ending March.
Asia-Pacific
During the first quarter of 2021, supplies in the Asia Pacific region were balanced, owing to the ample availability of upstream Tertiary Butyl Alcohol after the resumption in major plant activities in first half of the quarter. However, strong utilization of the natural rubber as an alternative dwindled the Halo-butyl Rubber market in the region leading to a decline of USD 84 per tonne CFR India price in February. Demand surged as the offtakes from the downstream sectors improved with initiation of COVID vaccine rollout throughout the Asia Pacific region
Europe
European market of Halo-Butyl Rubber showed mixed sentiments throughout the first quarter of 2021. Supplies were tight during the period due to the reduced shipment from the USA, followed by delay in arbitrage with the Asian suppliers due to the Suez Canal blockage. Plants in the northwestern hemisphere faced production disturbance owing to the shortage in supplies of raw material due to the transportation lag.
For the Quarter Ending December 2020
North America
In the first half of Q4, major rubber producing players declared force majeures in the gulf region in response to the aftermath of Hurricane Laura. Shortfall of upstream supply of isobutylene impacted the manufacturing of Butyl Rubber in the region. Postimpact of hurricane made some facilities go offline resulting in lower Butyl Rubber output in October. Limited offtakes by several automotive and industrial applications kept the sentiments low across the region. The US Tire manufacturers association (UTSMA) estimated that the tire exports of US at the end of 2020 dropped to 298.3 million compared to 332.7 million in 2019, amidst trade related uncertainties due to COVID-19.
Asia-Pacific
Despite a significant recovery observed over the previous quarter, the pandemic-induced slowdown continued to impact the consumption of Butyl Rubber in the Asian automotive sector. In the emerging economies of the Asian region, the demand of electric vehicles is expected to drive the tire industry, with a strong push anticipated in the chloro-butyl rubber sector by 2022. The fourth quarter proved to be significant one for the Indian market as Sibur-Reliance (JV) completed the construction of a Halo butyl facility in Jamnagar, India with the news that the first produced lot is anticipated to be supplied soon. Firming upstream Iso-butylene pushed up the offers for Butyl Rubber across Asia which maintained an average price of around USD 1500- 2030 USD per tonne on CFR basis.
Europe
The European automotive and electronic industry seemed deterred under suppressed sales amidst fears of fresh lockdowns imposed over certain European countries which may continue to cause great market disruptions if the transmission does not control. World’s largest Halo-Butyl Rubber producer, ExxonMobil announced full scale turnaround at its 110 KTPA Butyl Rubber facility in Fawley (UK) in prior during 2022. Rubber consumption remained impacted as Goodyear tires halted production of low volume tires in Luxembourg and redeploy the production from Colmar-Berg manufacturing facility to the company’s new site in Dudelange. Suppressed demand and limited sales maintained a somewhat downward pressure over the price curve during the quarter.
