For the Quarter Ending June 2025
North America
• The Isoprene Rubber Price Index in North America declined 2.5% quarter-over-quarter in Q2 2025.
• Domestic production remained largely stable, but inventory accumulation and weak downstream offtake created bearish pressure across the market.
• Demand from the automotive sector remained soft due to sluggish vehicle sales and delayed restocking. The construction and footwear segments also showed restrained buying behavior amid uncertain economic indicators.
• Imports from Asia, particularly from Russia and China, offered competitive alternatives, further weighing on local pricing.
• The overall trend in Q2 2025 reflected a bearish Isoprene Rubber Price Index across the U.S. market.
Why did the Isoprene rubber price change in July 2025 in North America?
• The Isoprene Rubber Price Index declined due to ongoing demand stagnation in key sectors and consistent inflow of low-cost imports, limiting any price rebound momentum.
Europe
• The Isoprene Rubber Price Index in Europe registered a quarter-over-quarter drop of 3.1% in Q2 2025.
• Local production remained moderate, but elevated input costs and weak end-user demand, especially from the tire and adhesives industries, led to reduced operating rates at multiple plants.
• Demand across the eurozone remained weak, with automotive production facing multiple disruptions due to parts shortages and soft consumer sentiment. Export volumes also dropped.
• Market participants in Germany and France reported inventory overhangs and scaled-down procurement in anticipation of seasonal production slowdowns.
• The overall Isoprene Rubber Price Index in Q2 trended downward across Europe, with minimal signs of recovery.
Why did the Isoprene rubber price change in July 2025 in Europe?
In July, the Isoprene Rubber Price Index continued to decline due to persistently weak downstream demand, high stocks, and reduced operating rates, particularly in tire manufacturing.
Asia Pacific (APAC)
• The Isoprene Rubber Price Index in APAC fell by 4.6% quarter-over-quarter in Q2 2025.
• Chinese production remained elevated due to overcapacity, with manufacturers offering competitive exports, while Japan and South Korea operated at reduced capacities due to margin pressures.
• Demand from the automotive and industrial sectors across APAC showed minimal recovery. Southeast Asian markets reported lower tire and footwear consumption due to weak retail and export performance.
• Rising freight availability post-Lunar New Year reduced costs but did little to spark stronger market sentiment.
• The Isoprene Rubber Price Index followed a bearish trend throughout Q2 in the APAC region.
Why did the Isoprene rubber price change in July 2025 in APAC?
• In July, the Isoprene Rubber Price Index declined further due to sluggish demand, oversupply from Chinese exporters, and limited restocking activity from downstream consumers.
South America
• In Argentina, the Isoprene Rubber Price Index rose 1.6% quarter-over-quarter in Q2 2025.
• Early Q2 saw prices hold steady due to balanced supply from Russia and Brazil and moderate local inventories. However, prices briefly increased in early May amid a spike in demand from the domestic automotive sector.
• Despite falling global naphtha prices reducing import costs, local CFR prices remained firm due to resilient demand and currency stabilization, especially in late Q2.
• Automotive production in Argentina rose 9.4% in April, supporting market strength. Construction activity remained moderate, adding to baseline consumption.
• The Isoprene Rubber Price Index in South America displayed a stable to slightly bullish trend through Q2 2025.
Why did the Isoprene rubber price change in July 2025 in South America?
• In July, the Isoprene Rubber Price Index remained stable, supported by consistent supply and healthy automotive sector demand, despite no major changes in upstream or import dynamics.
For the Quarter Ending March 2025
North America
• The Isoprene Rubber Price Index in January 2025 was largely stable, but the sentiment was bearish due to muted demand from key downstream industries like automotive and construction, despite steady Isoprene Rubber production cost trend.
• In February, extreme weather impacted logistics but did not significantly disrupt the Isoprene Rubber Price Index. Adequate inventory and stagnant demand kept the market balanced.
• By March, there was a slight recovery in the Isoprene Rubber Price Index as demand from the automotive sector began improving, leading to a mild bullish shift in sentiment.
Why did the price of Isoprene Rubber change in April 2025 in the US?
• Prices began to show a marginal increase by 0.4% driven by rebounding demand and better alignment between supply and procurement strategies.
• The Isoprene Rubber Demand Outlook improved toward the end of Q1, although concerns over tariffs and policy changes kept the bullish trend in check.
• Isoprene Rubber Spot Price movement reflected cautious optimism as trading activities normalized.
APAC
• In January 2025, the Isoprene Rubber Price Index remained stable with a bearish tone due to weak downstream demand and stagnant import costs from China.
• February saw no significant changes in Isoprene Rubber Spot Price due to post-holiday demand lulls, especially in Indonesia, and steady inventory levels.
• In March, a bullish trend emerged in the Isoprene Rubber Price Index due to increased procurement activity and higher import costs from China and Russia.
Why did the price of Isoprene rubber change in April 2025 in Asia?
• After a bullish March driven by expectations of demand recovery, many downstream buyers in countries like China, India, and Indonesia engaged in aggressive procurement.
• By early April, inventories were saturated, leading to reduced fresh orders and contributing to a 1.9% drop in the Isoprene Rubber Price Index.
• The Isoprene Rubber Production Cost Trend showed slight upward pressure due to rising import prices and logistical inefficiencies.
• Optimism grew in the Isoprene Rubber Demand Outlook as recovery signals became more evident across Southeast Asia.
Europe
• January 2025 started with a bearish Isoprene Rubber Price Index in Europe as automotive and construction sectors remained weak. Inventory sufficiency kept prices flat despite mild port congestion.
• February maintained a neutral trend in the Isoprene Rubber Spot Price, with no major changes in upstream costs or demand patterns. The market awaited potential economic policy reforms.
• March reflected a cautious bullish sentiment as the Isoprene Rubber Demand Outlook showed minor recovery signs in automotive and construction sectors, leading to slightly higher price quotations.
Why did the price of Isoprene Rubber change in April 2025 in Europe?
• Prices rose marginally by 0.7% due to gradual demand recovery, despite continued logistical issues and geopolitical uncertainties.
• The Isoprene Rubber Production Cost Trend remained relatively stable, supporting incremental price adjustments.
For the Quarter Ending December 2024
North America
The North American Isoprene Rubber market displayed mixed performance in Q4 2024, driven by fluctuations in demand, production costs, and macroeconomic factors. Market sentiment improved gradually, supported by a rise in supplier activity. Despite these gains, the market faced headwinds from downstream sectors like automotive, which experienced inventory surpluses and subdued consumer demand due to tighter credit conditions and elevated borrowing costs.
Compared to previous quarters, the market showed modest resilience, with pricing trends stabilizing despite external challenges, such as disruptions from port strikes along the East Coast and Gulf Coast. Additionally, the Federal Reserve's interest rate cut, aimed at stabilizing the economy, had minimal impact on the market dynamics. These logistical bottlenecks constrained the supply chain, adding upward pressure on prices while sustaining supplier interest. Seasonal impacts, including reduced trading activity in December, further influenced market dynamics.
Throughout Q4, prices for Isoprene Rubber MV (60-80) exhibited a slight downward trend. The fourth quarter ended with USD 3618/MT (FOB-Texas). Market participants face challenges, including policy uncertainties, muted downstream demand, and logistical disruptions, which have tempered optimism despite gradual recovery signs.
APAC
The Isoprene Rubber MV 60-80 market in the APAC region faced a challenging environment throughout Q4 2024, marked by subdued trading activity and weak downstream demand. In Japan, the automotive sector, a major consumer, continued to underperform, reflecting declining vehicle sales and reduced purchasing activity. Market participants exhibited caution amid broader economic uncertainties, inflationary pressures, and low consumer confidence, further dampening demand. Amid the declining production costs, market conditions remained largely bearish. Adequate inventory levels and intense competition prevented significant price adjustments, while logistical challenges stemming from supply chain disruptions, including infrastructure damage caused by earthquakes, added pressure. The disruption impacted manufacturing, transportation, and export activities, creating longer lead times and operational inefficiencies. Throughout the quarter, cautious market sentiment prevailed as suppliers focused on maintaining inventory levels and balancing supply and demand. This approach offset declining new orders and the weak economic environment, helping to stabilize market conditions. However, persistent challenges, including sluggish demand from the automotive sector, inflation, and concerns about future economic policies, continued to influence market behavior. These factors underscore the ongoing difficulties for participants navigating Japan's Isoprene Rubber market in a turbulent economic landscape.
Europe
In recent months, the Isoprene Rubber MV 60-80 market in Germany has shown persistent bearish trends amid various challenges. Initially, the market maintained stability, driven by a subdued trading environment and limited downstream activity. Despite occasional bullish momentum from the automotive and tire sectors, overall demand remained weak which continued to maintain the bearishness. The construction sector's underperformance further dampened market sentiments, offsetting any gains from the automotive sector. Logistical disruptions due to rail freight issues and weather conditions in Hamburg added to supply chain challenges, contributing to the cautious market behavior. Market participants remained hesitant, reflecting political and economic uncertainties, and maintained their quotations amidst an uncertain environment. As the quarter progressed, bearish sentiments dominated due to the continued subdued demand from the automotive and construction sectors. Sufficient inventory levels met downstream needs, keeping supply and demand balanced but preventing any significant price movements. Business confidence stayed muted, influenced by ongoing economic challenges, leading to a bearish market outlook. The overall sentiment in the Isoprene Rubber market in Germany was marked by cautiousness and limited optimism, reflecting the broader economic pressures and supply chain disruptions impacting the industry.
For the Quarter Ending September 2024
North America
During Q3 of 2024, the Isoprene Rubber MV (60-80) experienced a mixed trend. In the initial two months of Q3, the market witnessed a decline, primarily due to significant inventory accumulation. Despite expectations of increased sales to counteract production delays from the June cyberattack on CDK Global, inventory levels surged by an astonishing 49% to 2.9 million units. This oversupply, combined with a four-month low in inflation, created a challenging bearish environment. Moreover, economic uncertainty undermined investor confidence and diminished demand, forcing market participants to lower their ex-quotations and offer discounts to boost sales.
However, in the second half of Q3, the Isoprene Rubber MV (60-80) experienced an upward trend. This improvement was largely due to heightened supplier activity as market sentiments towards the commodity began to stabilize. A key driver behind this shift was the rising cost of Butadiene, the main feedstock for Isoprene Rubber, which increased production costs. Consequently, the Isoprene Rubber market began to show a gradual upward trend, despite overall market conditions remaining somewhat fragile. Nonetheless, the Isoprene Rubber market in the US remained strong, benefiting from rising production costs and improved supplier activity. This combination of factors contributed to an upward trend in the market, highlighting the resilience of Isoprene Rubber amid fluctuating downstream demand.
Additionally, the Federal Reserve reduced interest rates by 50 basis points, easing monetary policy for the first time in four years due to progress on the Fed’s dual mandate. The Fed’s decision to ease monetary policy is expected to support growth and stabilize a slowing labor market. Additionally, the quarter-on-quarter change of -4% highlighted the consistent pricing pattern.
APAC
In Q3 2024, the Isoprene Rubber market in the APAC region experienced a notable increase in prices, driven by various significant factors. The surge in pricing can be attributed to a rise in production costs, particularly the prices of the key feedstock, butadiene. The Isoprene Rubber MV 60-80 market in Japan faced challenges due to insufficient inventory levels in storage units, as suppliers have been actively maintaining and building up their stock. To address this situation, production rates of Isoprene Rubber have been ramped up, although this has come with increased production costs. As a result, ex-quotations for the commodity have been gradually increased to align with current market sentiments and reflect the rising costs. Additionally, there has been a slight uptick in employment in September, which indicates a marginal improvement in labor availability, while backlogs of work have shown a softer decline, suggesting that while production capacity was enhanced, the overall market still grapples with inefficiencies in meeting demand and managing inventory effectively. Compared to the previous quarter, prices rose by 4%, reflecting sustained growth.
Europe
In Q3 2024, the Isoprene Rubber market in Europe witnessed a significant 8% increase compared to the previous quarter, marked by a consistent upward trend. This rise can be attributed to several key factors affecting market dynamics. Notably, rising production costs, particularly due to escalating prices of Butadiene—a vital feedstock—played a crucial role in driving prices higher. Additionally, robust demand from the downstream Automotive and Tire sectors further supported the upward price movement, even amid fluctuations in the feedstock market. France, in particular, experienced notable price changes, with a 6% increase observed between the first and second halves of the quarter. This upward trajectory reflected a positive and stable pricing environment across the region. The overall pricing landscape during this quarter showcased a bullish sentiment, underpinned by strong demand and production cost pressures, highlighting the resilience of the Isoprene Rubber market in the face of rising input costs and evolving market conditions. Such trends suggest a promising outlook for future growth.
Frequently Asked Questions (FAQs):
1. What is the current price trend of Isoprene Rubber?
As of July 2025, the Isoprene Rubber Price Index showed a declining trend in North America, Europe, and APAC, while remaining stable in South America, especially in Argentina.
2. What factors influence the Isoprene Rubber Production Cost Trend?
Key drivers of the Isoprene Rubber Production Cost Trend include upstream naphtha prices, ethylene costs, global freight rates, and regional currency fluctuations.
3. What is the Isoprene Rubber Demand Outlook for 2025?
The Isoprene Rubber Demand Outlook for 2025 remains cautious, with moderate recovery anticipated in automotive and industrial rubber sectors in H2, contingent on macroeconomic stabilization.
4. Who are the leading producers of Isoprene Rubber globally?
Major producers include Sibur, Nizhnekamskneftekhim, Kraton Polymers, ZEON Corporation, and Sinopec, with strong manufacturing footprints across Asia, Europe, and the Americas.
