For the Quarter Ending December 2022
North America
Amid sluggish downstream demand and lowering manufacturing costs, Isoprene Rubber's market value constantly decreased in the fourth quarter of 2022 in the North American market. As the downstream automotive and tire industries were showcasing underwhelming performance in terms of sales and industrial output during the quarter, the demand for Isoprene Rubber from these industries fell. Additionally, the cost of producing Isoprene Rubber kept declining as crude oil and natural gas prices decreased, which led to a drop in the material's market value. Thus, the estimated price in the USA for Isoprene Rubber MV (60-80) in December was USD 3563/MT FOB Texas, which was 6.8% less than the price in September.
APAC
Like the North American market, the value of Isoprene Rubber in the Asia-Pacific region was steadily declining in the fourth quarter of 2022 due to weak downstream demand and falling manufacturing costs. The demand for isoprene rubber decreased as the downstream automotive and tire industries displayed lackluster performance in terms of sales and industrial output during the quarter. Additionally, as the price of crude oil and natural gas fell, the cost of making isoprene rubber continued to decrease, which resulted in a reduction in the material's market value. Isoprene Rubber MV (60-80) was therefore assessed to cost USD 2644/MT CFR Shanghai in China during December, which was 5.5% less than the price in September.
Europe
As the European market was experiencing weak downstream demand and a reduction in manufacturing costs for Isoprene Rubber, its prices were steadily declining in the fourth quarter of 2022. As the downstream automotive and tire industries performed poorly in terms of sales and industrial output during the quarter, the demand for Isoprene Rubber declined. In addition, as the cost of crude oil and natural gas dropped, so did the price of producing isoprene rubber, which decreased the commodities market value altogether. As a result, the estimated cost of Isoprene Rubber MV (60-80) was USD 1921/MT FD Hamburg in Germany during December, which was 8.3% less than the cost in September.
For the Quarter Ending September 2022
North America
Isoprene Rubber prices in the North American market were erratic throughout the third quarter of 2022 due to fluctuating dynamics between supply and demand. Prices for Isoprene Rubber surged in July, dropped in August, and then increased once more in September. The rise in industrial production rates, the excess supply, and the surplus of stocks were the main contributors to the decrease in the price of Isoprene Rubber in august. Weak downstream demand from the tire and adhesives industries served to reinforce this tendency even further. September saw a change in Isoprene Rubber prices because of supply issues, supply chain interruptions, and increasing demand. Hence, the price value of Isoprene Rubber MV (60-80) assembled at USD 3823/MT FOB Texas during September.
APAC
Isoprene Rubber prices in the Asia-Pacific region have been steadily declining during the third quarter of 2022 except for the month of July when it was rising. The prices dropped afterward due to weak demand from the downstream tire and adhesive industries. As these industries were not doing well in terms of production output and sales, the offtake of Isoprene Rubber was reduced. Furthermore, the Asian market was flooded with increased supply, which caused overflowing inventories, eventually leading to better material availability in the market. Besides, as the downstream demand was poor, good availability of material resulted in dropped price value. Conclusively, the assessed price value of Isoprene Rubber MV (60-80) was USD 3422/MT FOB Tokyo (Japan) in September.
Europe
Because of rising raw material costs, the price of Isoprene Rubber in Europe gradually increased throughout the third quarter of 2022. Even though the demand from the tire and adhesives industries was not exceptionally high during the quarter, the increased raw material prices had an impact on the upstream costs related to producing Isoprene Rubber, ultimately raising its market value. Port backlogs and supply disruptions in the countries throughout the quarter increased the cost of Isoprene Rubber in the domestic market. As a result, the evaluated price for Isoprene Rubber MV (60-80) was USD 2094/MT FD Hamburg (Germany) during the month of September.
