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.
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.
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 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.
