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 (APAC)
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
Asia-Pacific (APAC)
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.
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.
