For the Quarter Ending March 2025
North America
During Q1 2025, the U.S. Hydrogenated Nitrile Butadiene Rubber (HNBR) market experienced a modest decline in prices, registering a quarter-on-quarter fall of 0.94%. The quarter began with firm pricing momentum supported by balanced supply-demand fundamentals and improving feedstock trends. In January, suppliers benefited from a 1.2% rise in Butadiene prices and recovering production capacity, while demand was underpinned by steady performance in the aerospace sector despite subdued activity in the automotive segment.
February saw further price escalation, driven by sharper feedstock cost increases—Butadiene and Acrylonitrile rose by 10.07% and 8.7%, respectively—alongside lingering supply chain disruptions and trade policy uncertainties. However, by March, the upward trajectory reversed as Butadiene prices eased by 0.9%, reducing cost pressures and encouraging suppliers to revise offers downward to stay competitive.
Despite firm downstream demand, particularly supported by a notable increase in vehicle sales and stable aircraft deliveries, the absence of major logistical bottlenecks and the presence of sufficient inventory levels contributed to downward pricing flexibility. The quarter closed with a marginal net decline in HNBR prices, reflecting a delicate balance between persistent macroeconomic challenges, easing raw material inputs, and the strategic pricing behavior of suppliers navigating mixed sectoral performance and evolving trade dynamics.
APAC
In the first quarter of 2025, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in Japan experienced a marginal decline in prices, falling by 1.01% quarter-on-quarter. This dip can be attributed to a combination of factors, primarily influenced by fluctuations in feedstock costs. The 7.7% rise in Butadiene prices during January initially led to a price increase, supported by manufacturer pricing strategies and steady demand from the automotive and aerospace sectors. However, by March, a notable decline in both Butadiene and Acrylonitrile prices helped ease input costs, which prompted manufacturers to adjust their pricing strategies and implement moderate price reductions. While the automotive sector showed resilient demand, the overall manufacturing environment faced some challenges, particularly in the broader industrial market, which contributed to softer demand. Additionally, the strengthening of the Japanese Yen during the quarter made Japanese HNBR more competitive in export markets, further contributing to price adjustments. Despite steady domestic consumption, the moderation in export activity, particularly to China, and the softening of business sentiment as reflected in the Bank of Japan’s Tankan index, helped maintain a cautious market outlook, resulting in the slight quarterly decline in prices.
Europe
In Q1 2025, the price of Hydrogenated Nitrile Butadiene Rubber (HNBR) in the German market saw a slight decline in Q1 2025, reflecting a combination of steady supply and moderate demand fluctuations. Early in the quarter, HNBR prices were supported by stable production levels and consistent demand from the automotive and aerospace sectors. However, challenges arose as macroeconomic uncertainties, particularly in the construction sector, dampened overall consumption. The automotive industry experienced a mixed performance, with slower growth in new car registrations compared to the previous year, while aerospace demand remained stable, helping to offset some of the downturn in other sectors. Supply-side dynamics remained generally stable, but logistical delays and shipping congestion in key ports, especially in Hamburg and Rotterdam, affected timely distribution, slightly constraining supply. Despite these disruptions, HNBR manufacturers managed to maintain steady output, preventing any significant supply shortages. However, broader economic factors, including inflation concerns and the strong Euro, weighed on export competitiveness, leading to a decline in overseas demand. As a result, while production remained consistent, the subdued performance in key downstream sectors, coupled with logistical constraints, contributed to a moderate decline in HNBR prices during Q1 2025.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the U.S. Hydrogenated Nitrile Butadiene Rubber (HNBR) market experienced a slight 0.92% decrease from the previous quarter, reflecting the overall dynamics of moderate supply and demand fluctuations. Feedstock prices, such as Butadiene and Acrylonitrile, contributed to price stability, although both witnessed decreases, supporting the more subdued market conditions.
Manufacturing and supply remained stable, with suppliers managing adequate production levels to meet steady demand, despite disruptions caused by hurricanes and port congestion. Suppliers effectively adjusted to these challenges through inventory management and operational efficiency, maintaining a consistent flow of HNBR.
Demand in the automotive sector showed resilience, with steady vehicle sales reported throughout the quarter, marking notable increases in monthly figures. Conversely, the aerospace sector faced challenges, with Boeing’s reduced aircraft deliveries and production setbacks impacting overall HNBR consumption. Despite the setbacks, Boeing’s order for 200 787 MAX 10s brought cautious optimism for future recovery in the sector. The U.S. manufacturing sector continued its decline, as weaker order books and rising inventories indicated a potential slowdown, although business confidence improved in December. Despite these challenges, the stable automotive sector and effective supply chain management helped the HNBR market remain steady, mitigating the overall price decrease.
APAC
In the fourth quarter of 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in Japan experienced a 0.29% decrease from the previous quarter, largely driven by a combination of supply and demand factors. Despite steady feedstock availability, including Butadiene and Acrylonitrile, the automotive sector's underperformance and weak domestic demand contributed to the overall market slowdown. Manufacturers reported a decline in production volumes, influenced by reduced demand and extended delivery times. Additionally, sector-specific dynamics such as moderate activity in the aerospace sector provided some support, yet the overall market sentiment remained subdued. The trade data revealed mixed export trends, with shipments to China fluctuating, while exports to the U.S. showed significant variance, underscoring regional demand shifts. The manufacturing sector showed signs of stabilization in December, with some improvement in employment and a reduction in order backlogs. However, caution remained prevalent as manufacturers adjusted to the moderate supply conditions, bolstering their inventory levels while avoiding aggressive purchasing strategies. The combination of weak demand from key industries and cautious buyer sentiment shaped the overall market performance, reflecting a modest decline in market dynamics compared to the previous quarter.
Europe
In the fourth quarter of 2024, the European Hydrogenated Nitrile Butadiene Rubber (HNBR) market faced a challenging period, driven by mixed demand and supply conditions. While the automotive sector experienced a downturn, with new car registrations in December falling by 7.1% year-on-year, the aerospace sector performed well, with Airbus achieving strong delivery and order figures. This helped partially offset the sluggish demand from the automotive industry and supported continued consumption of HNBR in aerospace applications. The market also faced logistical difficulties, particularly with persistent port congestion at major European hubs, which strained supply chains. However, manufacturers worked to improve operational efficiencies and reduce lead times to mitigate these challenges, maintaining adequate inventory levels. Despite these hurdles, steady overseas demand, particularly from the aerospace sector, helped maintain a balanced market. However, the reduced activity in the automotive sector and ongoing supply chain pressures created a more challenging environment for suppliers, who had to adjust their strategies accordingly. Overall, the European HNBR market navigated a difficult quarter, but with a resilient aerospace sector and steady demand, it remained relatively balanced, though still facing significant challenges.
For the Quarter Ending September 2024
North America
In Q3 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in North America maintained stable prices, with the USA being the focal point for significant price movements. This stability can be attributed to moderate demand from key sectors, particularly automotive.
However, the aerospace sector faced challenges due to Boeing's underperformance, which negatively impacted overall HNBR consumption during the period. Despite a slight rise in input costs, the pricing environment remained steady, driven by consistent supplier actions and subdued demand. Notably, there were no reported plant shutdowns, ensuring a stable supply chain throughout the quarter.
Compared to the previous quarter, HNBR prices remained unchanged, while there was a notable 19.89% increase from the same quarter last year. In the feedstock market, Butadiene prices surged by 119% year-over-year, significantly influencing HNBR pricing during this period. The stable pricing trend was bolstered by adequate inventory levels, steady downstream demand, and minimal fluctuations in raw material costs. By the end of the quarter, HNBR prices in the USA stood at USD 35,260/MT.
APAC
In Q3 2024, the Hydrogenated Nitrile Butadiene Rubber (HNBR) market in the APAC region maintained stable prices. This stability was driven by consistent pricing from major exporters, effective supply chain management, and a balanced supply-demand dynamic, which prevented significant price fluctuations. Japan notably saw minimal price changes, with a recorded 1% increase from the previous quarter. However, year-on-year comparisons showed a slight decline of 1.30% in prices from the same quarter last year. Despite global economic uncertainties, the HNBR market in Japan displayed resilience, reflecting a stable pricing environment. By the quarter's end, HNBR prices ranged from 36% to 45% FOB Osaka, standing at USD 22,600/MT, emphasizing the prevailing consistent sentiment in the market. Additionally, the absence of reported disruptions or plant shutdowns during the quarter further supported the stable pricing conditions. The combination of steady demand and efficient supply chains contributed to the overall price stability of HNBR in the APAC region, reinforcing confidence among suppliers and consumers alike.
Europe
The price trend for Hydrogenated Nitrile Butadiene Rubber (HNBR) in Europe is currently challenging, influenced significantly by feedstock fluctuations and market dynamics. Suppliers are facing increased costs due to a 9.69% rise in butadiene prices in Q3, which has pressured HNBR pricing. Meanwhile, acrylonitrile prices saw a 10.36% decrease during the same period, creating an uneven cost landscape for manufacturers. Additionally, suppliers are contending with lower automobile sales compared to the previous quarter, as diminished economic performance has curtailed overall consumer spending across various sectors, including fashion, retail, and furniture. This decline in demand has further strained HNBR pricing as suppliers adjust their strategies to cope with shifting market conditions. In response to these challenges, suppliers may consider optimizing production processes or reevaluating pricing strategies to maintain competitiveness while navigating the pressures from fluctuating feedstock costs and reduced demand in downstream markets. Overall, the combination of rising butadiene costs and weakening demand is contributing to the current pricing challenges in the HNBR market.
For the Quarter Ending June 2024
North America
In Q2 2024, the market for Hydrogenated Nitrile Butadiene Rubber (HNBR) in North America has experienced a marginal decrease, with prices remaining largely constant. Key factors contributing to stable HNBR pricing include balanced supply and demand dynamics and adequate inventory levels maintained by suppliers. The supply disruptions witnessed, such as the severe drought affecting the Panama Canal, did not significantly disrupt the market's equilibrium as anticipated rains improved the situation.
Additionally, no significant plant shutdowns were reported during the quarter, further supporting the consistent supply levels. For USA, which saw the most substantial price changes within North America, HNBR prices remained steady, influenced by a mix of factors.
The automobile sector demonstrated a robust demand, contrasting with lower production levels in the aerospace sector, which balanced out the overall demand pressure. From the previous quarter in 2024, prices recorded a slight decline of -1%, indicating a stable trend without significant volatility. The quarter-ending price for HNBR 36%-45% FOB Texas in the USA was USD 35,260/MT.
APAC
During Q2 2024, the market for Hydrogenated Nitrile Butadiene Rubber (HNBR) in the APAC region experienced a decrement. Influential factors included a balanced supply chain, moderate demand from key downstream sectors such as automotive and aerospace, and steady feedstock costs, particularly for Acrylonitrile and Butadiene. Notably, there were no significant disruptions or plant shutdowns reported during this quarter, which contributed to the overall market equilibrium. Focusing on Japan, where the most notable price changes occurred, the HNBR market demonstrated resilience amidst varying demand dynamics and cost structures. The Japanese market's pricing was primarily due to consistent supplier performance, ample inventory levels, and effective management of production costs. Despite fluctuations in automotive sales, the aerospace sector's robust performance helped maintain a balanced demand-supply scenario. Comparatively, the overall trends in Japan reflected a more stable pricing environment when viewed against the previous quarter's decline of 2%, suggesting a recovery phase. The price comparison between the first and second halves of the quarter showed no significant disparity, reinforcing the stability narrative. The latest quarter-ending price for HNBR 36%-45% FOB Osaka was recorded at USD 22450/MT, indicating a balanced market sentiment.
Europe
In the European market, the price of Hydrogenated Nitrile Butadiene Rubber (HNBR) has seen a notable decrease recently. This trend is largely influenced by the downturn in the automotive sector, which has been experiencing reduced production volumes and weakening demand. As a significant portion of HNBR's application lies within the automotive industry, the slump in this sector has directly impacted the demand for HNBR, resulting in downward pressure on prices. Moreover, the overall manufacturing sector in Europe is also facing challenges, contributing further to the reduced demand for HNBR. Despite a relatively stable aerospace industry, the gains in this sector have not been sufficient to offset the declines in automotive and general manufacturing. The aerospace industry's positive performance, driven by ongoing technological advancements and increased demand for new aircraft, has provided some support, but not enough to counterbalance the broader market weaknesses. Overall, the European HNBR market is currently navigating through a challenging phase, characterized by decreased prices driven by downturns in key sectors like automotive and general manufacturing, despite some positive momentum in aerospace.
