For the Quarter Ending March 2023
In the first quarter of 2023, the Neoprene Rubber market displayed conflicting sentiments, which was supported by shifting supply and demand dynamics. After showcasing a significant increase in January, prices for Neoprene Rubber surged again in February, only to decline as the quarter's end drew near. The automobile sector began to recover as soon as the supply of semiconductors began to improve, but it was badly hurt by the economic turmoil caused by the failure of two significant US banks. Because of the severe effects of the recession, less Neoprene Rubber was consumed by the automotive industry, which eventually resulted in a price decrease. Hence, the assessed price of Neoprene Rubber in the USA in March was USD 6400/MT CFR Texas.
The Asia-Pacific region's Neoprene Rubber market showcased mixed sentiments, which was very similar to its trend in North America. In Asia-Pacific, the cost of Neoprene Rubber rose in January, increased again in February, and then suddenly decreased in March. The faltering automobile industry in the Asia-Pacific area quickly started to exhibit indications of deterioration as China started to reduce its automotive inventories. Due to massive inventories and few sales, Tesla reduced the market value of automobiles, which started a pricing war in the Chinese auto sector. Imitating Tesla's move, other auto manufacturers started destocking as well. Due to the automotive industry's active destocking activities, the production of automobiles declined, which also had an impact on the demand for Neoprene Rubber. The Asian market's demand suffered owing to their dependence on the Chinese market for Neoprene Rubber consumption. Hence, the price of exported Neoprene Rubber from Japan was USD 6150/MT FOB Osaka during March.
Neoprene Rubber prices in the European market rose steadily during the first quarter of 2023, helped by rising downstream demand. As soon as the first quarter of the year began, the automotive industry showed a market surge, which increased purchases of Neoprene rubber. A surge was observed in January and February because of a sharp increase in the industry's industrial output and sales. Initially, the automobile industry's recovery was sharp as it attempted to recover from its losses from the previous year. However, the automotive industry's growing momentum slowed down again as the quarter approached its end because of the unsteady global economy. Consequently, the estimated price of Neoprene Rubber in Germany was USD 5900/MT FOB Hamburg in March.
For the Quarter Ending December 2022
Amidst variances in downstream demand from various industries, the market value of Neoprene Rubber in North America showed conflicting attitudes in the fourth quarter of 2022. Due to the inconsistent growth of the automotive and construction industries in the domestic market, the demand for neoprene rubber from these industries fluctuated during the quarter. Upstream costs and variable production costs were other factors that impacted the growth of the Neoprene rubber industry. Because of this, the price trend for Neoprene Rubber dipped in October, showed signs of improvement in November, then dropped again in December 2022. Neoprene Rubber's assessed prices in the USA in December were at USD 5060/MT CFR Texas.
The market value of Neoprene Rubber in the Asia-Pacific region showcased mixed sentiments in the fourth quarter of 2022 with variations in downstream demand from diverse industries. The demand for Neoprene Rubber from the construction and automotive sectors of the domestic market fluctuated during the quarter because of their uneven growth. Other elements that had an impact on the expansion of the Neoprene Rubber sector included upstream costs and variable production costs. This caused the price trend for Neoprene Rubber to decline in October, increase in November, then decline once more in December. The assessed value of Neoprene Rubber MV (36-44) in China was USD 4300/MT CFR Shanghai in December, 9.9% less than the price in September.
Unlike APAC and North American markets, the European market saw a steady decline in the price of Neoprene Rubber during the 4th quarter of 2022 due to weak downstream demand and lower manufacturing costs. The demand for Neoprene Rubber decreased as the downstream automotive and construction sectors underperformed in terms of sales and industrial output during the quarter. Additionally, as the price of crude oil and natural gas fell, so did the cost of production for Neoprene Rubber, which ultimately reduced the value of the commodities market. As a result, the expected price for Neoprene Rubber in Germany during December was USD 3890/MT FOB Hamburg.
For the Quarter Ending September 2022
Due to sluggish demand from the downstream construction and automotive industries, Neoprene Rubber prices have fallen continuously for the third quarter of 2022 in the North American market. The United States primarily imports neoprene rubber from Japan, Germany, and other nations. Although Japan's pricing mentality had been firm, the USA market was experiencing a bearish pricing trend due to decreased demand. The construction industry usually has its highest levels of consumption in the second and third quarters, but the mounting fears of a US recession have shifted consumer sentiment. Hence, the assessed price value of Neoprene Rubber was USD 5330/MT CFR Texas during September.
Due to shifting dynamics between supply and demand, Neoprene Rubber prices in the Asia Pacific region remained unpredictable throughout the third quarter of 2022. Neoprene Rubber prices rose in July, fell in August, and then rose again in September. The primary causes of the decline in the price of Neoprene Rubber in August were the increase in industrial production rates, the excess supply, and the glut of stockpiles. This tendency was further strengthened by weak downstream demand from the construction and automotive industries. Neoprene Rubber prices changed in September because of supply problems, supply chain disruptions, and increased demand. Finally, supply problems, low stock levels, and a recovering market were factors in the price increase for Neoprene Rubber in Asia. Conclusively, the prices of Neoprene Rubber assembled at USD 5590/MT FOB Osaka during September.
Neoprene Rubber prices in the European market were unsteady throughout the third quarter of 2022 due to fluctuating dynamics between supply and demand. Prices for Neoprene Rubber increased in July, decreased in August, and then increased again 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 Neoprene Rubber in august. Weak downstream demand from the construction and automobile industries reinforced this tendency even further. September saw a change in neoprene rubber prices because of supply issues, supply chain interruptions, and increasing demand. Hence, the assessed price value of Neoprene Rubber was USD 6390/MT FOB Hamburg (Germany) during September.
North American Neoprene Rubber market has remained fluctuating throughout the quarter, and a seesaw price momentum was observed. As per the data, Neoprene Rubber's price showcased an uptrend during the first half of the quarter, which later traced a downward trajectory. Imports remained costly as manufacturers in Far East Asia faced rising pressure from upstream and other input costs. Denka has recently announced a price revision which will also be applicable in the US market. However, under the influence of a looming recession, product prices slipped during the month of June 2022 in the USA.
Prices of Neoprene Rubber in the Asian market continued to rise for the second consecutive month of the quarter. As per ChemAnalyst's data, a surge of around 6% month on month basis was assessed by the end of April 2022 in the Indian market. While demand witnessed mixed sentiments throughout the month, supply was assessed to be imbalanced in the same period. India imports a large amount of its consumption from overseas. Thus, global inflationary pressure and high input cost compelled producers to raise the price of their materials not only in India but in the whole Asian market. According to ChemAnalyst analysis, Neoprene Rubber's downstream industries were observed to perform better in India than in various major Asian economies.
As per the assessment by ChemAnalyst, Neoprene rubber has continued its bullish rally in the European market owing to firm feedstock prices and strong pricing overseas. While producers and distributors have transferred the burden of exorbitant prices onto the consumers, consumers were facing the wrath of strong inflation rates in Europe. Meanwhile, demand from downstream industries has been weak to stable owing to growing speculations around recession deterring consumer sentiment. Neoprene rubber prices have been at record levels as of June 2022, and the prices increased by 3.7% at the beginning of June.