For the Quarter Ending September 2025
North America
• In USA, the Neoprene Rubber Price Index fell by 6.76% quarter-over-quarter, reflecting weak downstream demand.
• The average Neoprene Rubber price for the quarter was approximately USD 5840.00/MT, per CFR-Texas reports.
• Neoprene Rubber Spot Price softened as buyers delayed purchases, increasing inventories and compressing spot margins.
• Neoprene Rubber Price Forecast shows volatility, with short upticks expected due to tariffs and restocking.
• Neoprene Rubber Production Cost Trend elevated as higher butadiene and energy inputs squeeze producer margins.
• Neoprene Rubber Demand Outlook is cautious; automotive improvement offsets construction weakness and tariff-related procurement hesitancy.
• Neoprene Rubber Price Index volatility reflects allocated shipments, supplier cautious selling, and selective inventory destocking.
• Logistics remained smooth, aerospace demand provided limited support, while tariffs and inventories constrained price recovery.
Why did the price of Neoprene Rubber change in September 2025 in North America?
• Reduced automotive and construction activity lowered consumption, increasing inventories and weakening pricing power in market.
• Higher butadiene and energy costs in Japan tightened feedstock economics, prompting price pass-through to buyers.
• Imposed tariffs and export routing disruptions created import cost uncertainty, suppressing restocking and transactional demand.
APAC
• In Japan, the Neoprene Rubber Price Index fell by 8.34% quarter-over-quarter in Q3 2025, reflecting weaker demand.
• The average Neoprene Rubber price for the quarter was approximately USD 5273.33/MT, including FOB-Osaka assessments.
• Moderate inventories and export softness pressured the Neoprene Rubber Spot Price and constrained seller leverage.
• Rising butadiene volatility affected the Neoprene Rubber Production Cost Trend, squeezing producer margins across the supply chain.
• Balanced demand and subdued construction contributed to a conservative Neoprene Rubber Demand Outlook for the near term.
• Forecasts show limited upside as the Neoprene Rubber Price Forecast anticipates small retracements amid mixed signals.
• Port operations and logistics stability supported orderly flows, keeping the Neoprene Rubber Price Index relatively contained.
• Automotive gains were insufficient to offset housing weakness, weakening downstream ordering and spot buying interest.
Why did the price of Neoprene Rubber change in September 2025 in APAC?
• Oversupplied butadiene feedstock reduced production costs and allowed suppliers to lower offers within Japan.
• Weak domestic construction and cautious exporters reduced demand for Japanese neoprene volumes amid uncertainty.
• Logistics normalization and inventory adjustments limited urgent restocking, keeping price pressures downward.
Europe
• In Germany, the Neoprene Rubber Price Index fell by 2.96% quarter-over-quarter, reflecting weak automotive and construction demand.
• The average Neoprene Rubber price for the quarter was approximately USD 3493.33/MT, reflecting subdued demand and stable feedstock costs.
• Neoprene Rubber Spot Price tightened in August due to logistical bottlenecks, supporting short-term seller pricing discipline.
• Neoprene Rubber Price Forecast shows modest volatility with small monthly adjustments driven by inventory and shipping constraints.
• Neoprene Rubber Production Cost Trend moderated as lower Butadiene prices eased upstream cost pressure for manufacturers.
• Neoprene Rubber Demand Outlook remains cautious amid mixed automotive recovery and weak construction activity across Germany.
• Inventory overhang and reduced export orders weighed on the Neoprene Rubber Price Index, constraining upside momentum.
• Port congestion, terminal delays, and selective grade allocation exacerbated availability issues, prompting buyers to secure Neoprene Rubber volumes earlier.
Why did the price of Neoprene Rubber change in September 2025 in Europe?
• Weak automotive output and construction slowdown reduced demand, directly pressuring Neoprene Rubber spot pricing in September.
• Lower Butadiene feedstock costs eased production cost trend, partially offsetting downward price pressure during the month.
• Logistics disruptions and port congestion tightened physical availability, prompting precautionary buying and short-term price support.
For the Quarter Ending June 2025
North America
• Neoprene Rubber prices declined 13.4% Q o Q in Q2 2025, impacted by weakening feedstock costs and soft downstream demand.
• Producers including Denka, Lanxess, and overseas exporters from Japan maintained steady shipments, ensuring sufficient supply in the U.S. market.
• Reduced Butadiene prices from Asia, particularly Japan and South Korea, lowered cost support for imported Neoprene, creating downward price pressure.
• Demand from the construction and industrial sectors remained tepid, while aerospace-related consumption provided limited offset.
• Inventories remained elevated, discouraging aggressive restocking. Logistical challenges, including truck shortages and port delays, created localized disruptions.
Why did the price of Neoprene Rubber change in July 2025 in the US?
• Neoprene Rubber prices move higher in July 2025, supported by improved procurement activity from key downstream sectors.
• Feedstock Butadiene costs stabilize, offering a firmer cost foundation for suppliers to adjust offers upward.
• Weakened demand from construction, alongside cautious buying from OEMs, held back purchasing activity.
• OEMs and construction buyers show renewed interest, prompting steady order placements across the U.S. market.
• Japanese exporters raise offers slightly amid tightening availability, while U.S. importers resume restocking to manage forward demand.
Europe
• Neoprene Rubber prices in Europe declined by approximately -13.0% Q o Q in Q2 2025, amid weak end-user demand and rising imports.
• Downstream demand from construction and industrial sealing applications remained below expectations.
• Producers across Belgium and Germany adjusted operating rates to control oversupply.
• Logistical bottlenecks in major ports and inland freight delays exacerbated delivery timelines but failed to support price floors.
Why did the price of Neoprene Rubber change in July 2025 in Europe?
• Neoprene Rubber prices rise modestly in July 2025, supported by a gradual recovery in downstream demand.
• Aerospace sector activity improves slightly in key European economies, contributing to better market sentiment.
• Asian suppliers, particularly from Japan, adjust export offers upward amid tighter supply and currency shifts.
• Buyers accept higher prices as inventory levels normalize, and macroeconomic outlook shows early signs of stabilization.
Asia Pacific
• Neoprene Rubber prices in APAC fell 16.6% Q o Q in Q2 2025, weighed down by high inventories and falling raw material costs.
• Regional suppliers—mainly from Japan, South Korea, and China—operated at moderate-to-high rates, maintaining stable availability.
• Butadiene price declines and lower logistics costs reduced production cost pressures.
• Demand from footwear, construction, and automotive sectors remained uneven, with domestic orders lagging behind export expectations.
• Export activity from Japan to the US and Europe increased, offering price leverage to Asian sellers.
Why did the price of Neoprene Rubber change in July 2025 in APAC?
• Neoprene Rubber prices increasing in July 2025 amid improved regional buying sentiment.
• Tighter supply conditions and easing competition from Asian exporters contribute to the upward pricing movement.
• Japanese producers raise export offers to reflect lower inventories and improved overseas demand.
• Rising Butadiene costs and renewed procurement activity support the firming market trend.
For the Quarter Ending March 2025
North America
• The Neoprene Rubber Price Index in North America declined by 2.30% on a quarter-over-quarter basis in Q1 2025.
• Early in the quarter, the Neoprene Rubber Spot Price was elevated due to high sourcing costs from Japan, inflation, and supply chain issues.
• By March, the easing of feedstock Butadiene prices (down 0.9%) and reduced freight rates led to lower production and transportation costs, impacting the Neoprene Rubber Production Cost Trend.
• Supply remained stable with manageable inventory levels despite temporary delivery disruptions caused by weather and staffing shortages.
• The Neoprene Rubber Demand Outlook stayed firm, with strong recovery in the automotive sector—vehicle sales rose by 30.3% in March—supporting offtakes.
• Steady aircraft deliveries, particularly from Boeing’s 737 MAX, sustained demand in the aerospace sector, while residential activity drove a slow rebound in construction.
• However, inflation concerns, trade uncertainty, and weak consumer sentiment tempered aggressive procurement.
Why did the price of Neoprene Rubber change in April 2025 in the US?
• In April 2025, the Neoprene Rubber Price Index further decreased by 4.5% due to the residual effect of falling feedstock costs and stabilizing freight rates.
APAC
• In Japan, the Neoprene Rubber Price Index registered a slight quarter-over-quarter decline in Q1 2025.
• Prices increased during January and February, influenced by elevated Butadiene costs and continued margin pressures, which impacted the Neoprene Rubber Production Cost Trend.
• Denka Corporation implemented phased price hikes, although operational challenges persisted as reflected in lower Q3 FY2024 earnings.
• A seismic event in January briefly affected supply, but overall availability remained stable throughout the quarter.
• March saw a price correction as Butadiene costs dropped sharply by 5.5%, easing pressure on manufacturers and reducing the Neoprene Rubber Spot Price.
• The Neoprene Rubber Demand Outlook remained healthy, with vehicle sales and housing starts showing signs of recovery in March.
• Export performance was volatile—after slumping in January, shipments to China and India rebounded in February, driven by renewed demand.
• A marginally stronger Yen and cautious domestic sentiment (weaker Tankan index) also contributed to a pullback in pricing.
Why did the price of Neoprene Rubber change in April 2025 in the Asia?
• In April 2025, the Neoprene Rubber Price Index decreased by 7.1% due to reduced feedstock input costs and slower domestic market momentum.
Europe
• The Neoprene Rubber Price Index in Europe declined by 3.27% on a quarter-over-quarter basis in Q1 2025.
• January and February saw price gains from constrained Butadiene supply, proactive inventory accumulation, and logistical issues at major ports in North Europe.
• These supply-side factors temporarily elevated the Neoprene Rubber Spot Price, but demand-side weakness in March reversed the trend.
• Construction activity remained sluggish with declining orders in both residential and commercial segments, dampening the Neoprene Rubber Demand Outlook.
• Automotive demand showed inconsistent performance, while aerospace remained a steady demand source with increasing aircraft orders and deliveries.
• The Neoprene Rubber Production Cost Trend was relatively stable, though a stronger Euro affected export competitiveness and reduced regional margins.
• Industrial sentiment remained cautious, despite minor improvements in the Ifo Business Climate Index and ECB’s rate changes.
Why did the price of Neoprene Rubber change in April 2025 in the Europe?
In April 2025, the Neoprene Rubber Price Index in Europe experienced a sharp declination by 7.9% due to a combination of demand-side weakness and easing production cost pressures.
• The primary reason for the price drop was persistent softness in the Neoprene Rubber Demand Outlook, especially from the construction sector, which continued to face reduced new orders and sluggish project activity. Additionally, while the aerospace segment maintained steady demand, automotive sector signals were mixed, leading to overall market caution.
• On the supply side, improved Neoprene Rubber Production Cost Trend—particularly due to lower feedstock Butadiene prices and stable manufacturing operations—helped relieve input cost pressures, allowing suppliers to adjust prices downward.
For the Quarter Ending December 2024
North America
The Neoprene Rubber market in the U.S. experienced a 2.99% decline in pricing during the final quarter of the year, influenced by evolving market dynamics across key sectors. The decrease can be attributed to weaker feedstock prices, particularly Butadiene, which saw consistent declines throughout the quarter. Lower production costs for Chloroprene-based monomers further pressured prices, reflecting subdued feedstock trends.
Demand dynamics presented a mixed outlook. The automotive sector remained a strong performer, with steady vehicle sales and increased production levels contributing to robust consumption of Neoprene Rubber. However, the aerospace and construction sectors faced challenges, including production disruptions, reduced orders, and economic constraints, leading to weaker demand in these areas.
On the supply front, adequate raw material availability and effective supplier strategies ensured steady market supply, despite temporary disruptions such as hurricane-related delays and port congestion. Manufacturers maintained cautious inventory management, aligning production with moderate to lower demand to avoid oversupply. Overall, the quarter highlighted the resilience of the automotive sector amid broader economic headwinds. However, the aerospace and construction sector's subdued performance, combined with reduced input costs, shaped a softer market sentiment.
APAC
In the last quarter of 2024, the Neoprene Rubber market in Japan experienced a 3.14% decline in overall performance, influenced by subdued market conditions and feedstock dynamics. Declining Butadiene costs, which fell sharply during the quarter, significantly impacted production expenses, enabling manufacturers to adjust pricing strategies. However, domestic demand remained sluggish, particularly from the automotive sector, which reported lower sales compared to previous months. Japan's manufacturing sector faced headwinds, with PMI data indicating a continued contraction in output and new orders, particularly in semiconductors and automotive components. While aerospace activities offered modest support, the overall economic landscape was marked by cautious buyer sentiment and a reduction in export activity. Despite these challenges, signs of stabilization emerged in December, with improving employment levels and a slight recovery in manufacturing sentiment. On the supply side, inventories remained adequate, and raw material availability improved toward the end of the year. However, extended delivery lead times and logistical challenges persisted. Exports of Chloroprene-based rubber showed mixed trends, with notable growth in October but declining volumes in November and December.
Europe
The German Neoprene Rubber market faced a 5.59% quarterly decline influenced by multiple factors across the automotive, aerospace, and construction sectors. The cost of Butadiene, a key feedstock, decreased consistently over the quarter, reducing production costs for Chloroprene-based monomers. This contributed to softer market sentiment and cautious inventory management by suppliers. Supply conditions remained stable throughout the quarter, supported by improved raw material availability. Manufacturers maintained steady production levels, aligning supply with the observed demand. Port congestion, a persistent challenge, showed some improvement, facilitating smoother supply chain operations, particularly in November. Demand dynamics varied across sectors. While the automotive sector saw fluctuations, ending the quarter with a subdued performance, the aerospace sector provided some support with strong delivery and order volumes. Conversely, the construction sector struggled due to declining activity, political uncertainty, and continued job cuts, further dampening demand for Neoprene Rubber. Market participants remained cautious, focusing on inventory control and adapting to shifting economic conditions. The overall sentiment reflected a conservative approach to mitigate risks amid weaker downstream demand. Despite challenges, the aerospace sector's resilience and improving consumer climate indicators suggest potential for recovery in the upcoming quarter.
