For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. Polybutadiene Rubber (PBR) market experienced a modest decline in average quarterly prices, influenced by evolving supply-demand dynamics and shifting feedstock trends. Despite price stability across each individual month, the quarter closed with a 2.44% decrease compared to the previous quarter, primarily due to a notable drop in Butadiene prices in March amid oversupply and weakened downstream demand.
Throughout the quarter, supply remained largely steady, supported by consistent domestic production and sufficient inventory levels, although port congestion, freight delays, and adverse weather events presented intermittent logistical challenges. Meanwhile, demand from key sectors such as automotive and tires was mixed. The Automobile sector showed fluctuating performance, with sales rebounding strongly in March, while the Tire sector-maintained resilience despite tariff pressures and weaker consumer sentiment in early Q1.
Manufacturers adapted by optimizing inventories and navigating inflation-driven logistics costs. While early-quarter sentiment was buoyed by pro-business policies and a rebound in factory hiring, the latter part of the quarter saw growing caution due to tariff impacts, increased shipping costs, and uncertainty in global trade flows. Nonetheless, the overall equilibrium between supply and moderate demand helped the market avoid sharp price fluctuations, leading to a controlled softening of average quarterly prices.
APAC
In Q1 2025, Polybutadiene Rubber (PBR) prices in Japan experienced a slight decline of 2.16% compared to the previous quarter. Despite the reduction in butadiene costs, which saw a 5.5% drop in March, the overall market remained stable due to steady supply levels and consistent demand from the automotive and tire sectors. While manufacturers faced pressure from rising operational costs, they successfully managed to maintain adequate stock levels and adjusted export volumes to accommodate local demand. The automotive sector demonstrated resilience with robust vehicle sales, contributing to stable demand for PBR. However, the manufacturing sector showed signs of contraction, with business sentiment softening as reflected in the Bank of Japan’s Tankan index. The tire sector faced challenges due to weather-related disruptions in natural rubber production, but the growing adoption of electric vehicles and infrastructure projects helped mitigate some of these effects. Overall, while PBR prices showed a minor decrease, steady demand in key sectors, along with strategic supply chain adjustments by manufacturers, helped maintain relative market stability. The outlook remains cautious, with manufacturers continuing to manage their inventories carefully and monitor external economic conditions.
Europe
Polybutadiene Rubber (PBR) prices in the European market recorded a marginal decline of 1.00% quarter-on-quarter during Q1 2025, amid a confluence of stable demand, mild fluctuations in feedstock costs, and persistent logistical disruptions. Throughout the quarter, price levels remained largely consistent, with only slight movements reflecting the interplay between production costs and market activity. Although Butadiene prices softened due to reduced naphtha and energy prices, the downstream impact on PBR was limited as suppliers managed inventories effectively and maintained steady production levels. Demand trends varied across key sectors. While the Tire segment provided modest support, particularly through replacement sales driven by winter and all-season segments, the Automobile sector remained under pressure, with new car registrations declining year-on-year in both January and February. However, March showed a recovery in registrations, suggesting a potential rebound. Supply chains faced continued challenges from labor strikes, port congestion, and staffing shortages at major Northern European ports, resulting in shipment delays and elevated yard utilization. Despite these headwinds, suppliers maintained adequate stock levels, mitigating volatility.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the price of Polybutadiene Rubber (PBR) in the US saw a 2.65% increase compared to the previous quarter, moving from 1885 USD/MT in early January to a higher value in December. This rise can be attributed to a combination of market factors, despite the underlying challenges. Throughout the quarter, PBR pricing remained stable with only slight fluctuations. Early in the quarter, PBR prices were marked by stability, supported by sufficient inventories and adequate feedstock supply, particularly Butadiene. As the quarter progressed, moderate demand from the automotive and tire sectors contributed to pricing stability, with support from buyer interest and consistent supplier delivery schedules.
However, the market saw a 2.2% decline in early January, driven by a reduction in Butadiene prices. Despite this, the overall price trend for the quarter remained upward due to a mix of factors such as the overall stable supply chain and ongoing buyer sentiment. Additionally, significant events like Goodyear's sale of the Dunlop brand did not disrupt the market, maintaining balance in PBR availability.
The quarter was also influenced by positive consumer sentiment and steady automobile sales, which helped maintain demand, preventing further price drops and contributing to a moderate price increase.
APAC
The Polybutadiene Rubber (PBR) market in China experienced a 3.61% increase in prices from the previous quarter. This increase follows a period of price stability, supported by consistent butadiene pricing and balanced supply-demand conditions. The rise is attributed to a combination of factors, including steady production rates at nearly 80% capacity, robust supply chain operations, and firm demand from key sectors such as automotive and tire manufacturing. The automotive sector continued its positive performance with growing retail sales, while tire production remained a strong pillar of support for PBR demand. Supply-side dynamics remained stable, with no significant disruptions observed despite rising operating rates. However, logistical activities ensured smooth material flow, preventing potential bottlenecks. While global export orders showed signs of softening, domestic demand for PBR offset this decline, contributing to the overall positive market outlook. The cautious procurement strategies adopted by buyers also helped maintain market stability, reflecting a cautiously optimistic sentiment for PBR prices. Despite the increase, market participants are aware of potential supply chain risks, including rising input costs and potential delays.
Europe
In the fourth quarter of 2024, Polybutadiene Rubber (PBR) prices in Germany saw a 1.51% decrease compared to the previous quarter, reflecting the broader challenges faced by the market. Despite a mild reduction in feedstock costs, demand for PBR remained moderate, driven by a subdued automotive sector and weak performance in the tire sector. While manufacturing output showed signs of improvement, including better delivery times and raw material availability, economic concerns such as weak consumer sentiment and declining orders in key sectors dampened overall demand. The supply of PBR remained stable, with suppliers managing inventories effectively, preventing significant disruptions. However, logistical challenges such as port congestion in Hamburg persisted, contributing to delays in deliveries. The automotive sector saw a mixed performance, with slight growth in new car registrations in November, but a notable decrease in December. Despite these challenges, manufacturers maintained cautious buying behavior, keeping inventory levels steady and adjusting purchasing activity to align with a slow recovery in the domestic market. Overall, while the outlook for PBR prices remained stable, the slight quarterly decline reflects ongoing economic uncertainties, especially in the automotive and tire sectors, limiting growth potential.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polybutadiene Rubber (PBR) market experienced a significant price increase, driven by various converging factors. There was a notable surge in demand from key sectors, particularly automotive tires and industrial applications, coupled with supply chain disruptions and rising feedstock costs. The primary feedstock, Butadiene, saw a 1.88% increase compared to the previous quarter.
Additionally, suppliers were heavily engaged in long-term buildup activities to meet the current market demand, contributing to the overall rise in PBR prices. Prices increased by 12.40% from the previous quarter, reflecting the dynamic nature of the market. However, when compared to the same quarter last year, prices were still down by 37%, indicating a substantial recovery in the current market landscape.
By the end of the quarter, the price for Polybutadiene Rubber in the USA reached USD 1937/MT FOB Texas, highlighting the overall positive sentiment in the pricing environment. This increase marks a period of growth and resilience in the PBR market, showcasing its adaptability to changing conditions while maintaining stability amidst external challenges.
APAC
Throughout Q3 2024, the Polybutadiene Rubber (PBR) pricing landscape in the APAC region has experienced a steady increase. This upward trend can be attributed to several factors influencing market dynamics, including rising costs of key feedstock Butadiene, sustained demand from various sectors, and strategic inventory management by market participants. Collectively, these elements have fostered a positive pricing environment in the region. Demand for tires in the Asian market has remained moderate, but depleting inventories and surging Butadiene costs have significantly impacted PBR prices. Japan, in particular, witnessed the most substantial price changes in the APAC region during this quarter, reflecting broader market sentiments. The market recorded a notable 15.71% increase from the same quarter last year, alongside an 8.20% rise from the previous quarter in 2024. Closing the quarter at USD 3200/MT for Polybutadiene Rubber (PBR) FOB Tokyo, Japan has demonstrated a robust and positive pricing environment throughout Q3 2024, highlighting the resilience and growth of the market amid ongoing challenges.
Europe
In Q3 2024, the European Polybutadiene Rubber (PBR) market experienced a significant drop in prices, with France seeing the most notable declines. Several factors contributed to this downward shift, including a decrease in the price of key feedstock Butadiene, despite it witnessing a 3.97% increase from the previous quarter. This change influenced PBR pricing across the region. However, demand from the downstream tire sector remained weak, particularly in the OE and replacement tire segments, due to underperformance in the automobile and manufacturing industries. This weak demand further contributed to the downward pressure on PBR prices, creating an imbalance between supply and demand. France, in particular, experienced considerable price volatility, with a 2.95% year-on-year decrease and an 8.16% drop from the previous quarter, signaling a substantial price adjustment. By the end of Q3 2024, the price of Polybutadiene Rubber in France settled at USD 1800/MT FD Le Havre, reflecting a bearish sentiment in the market as oversupply and weak demand continued to weigh on pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the Polybutadiene Rubber (PBR) market in North America exhibited bearish pricing, influenced by several significant factors. The decline was primarily underpinned by excessive inventory management by suppliers, who aligned production levels closely with demand. Market participants also engaged in strategic destocking activities, which balanced the supply-demand equation. Despite a notable 43% year-over-year price drop, the quarter experienced a mere 6.5% decline from Q1 2024, reflecting a controlled environment.
Seasonality played a role, with moderate to high demand from the automotive and tire sectors providing a consistent pull on PBR, counterbalanced by subdued industrial activities. In the USA, which experienced the most marked price fluctuations, the consistency in pricing was more pronounced.
The overall trend was marked by a resilience against external pressures, such as high feedstock costs, particularly Butadiene, which saw a significant uptick. The quarterly analysis reveals a nuanced interplay between strategic supplier actions and market demand, culminating in a quarter-ending price of USD 1588/MT DEL Texas.
APAC
In Q2 2024, the Polybutadiene Rubber (PBR) market in the APAC region has experienced a notable upward trajectory, driven by several key factors. The primary catalyst for the price surge has been the significant increase in the cost of the major feedstock, Butadiene. This escalation is underscored by a sustained demand from various downstream sectors, particularly the tire and automotive industries, which have shown robust consumption patterns. Additionally, market participants have engaged in proactive inventory accumulation, anticipating further price hikes due to supply constraints and heightened production costs. The overall sentiment in the PBR market has been predominantly positive, reflecting the alignment between demand growth and controlled supply. Focusing on Japan, which has witnessed the most pronounced price changes, the market dynamics have been influenced by both global and local factors. The second quarter has seen prices rise by 11.3% from the previous quarter, and an 5.8% increase compared to the same quarter last year. This steady rise underscores a correlation between sustained industrial activity and escalating feedstock prices. The latest quarter-ending price for PBR in Japan stands at USD 2975/MT FOB Tokyo, reflecting a stable yet upward pricing environment, indicative of robust market fundamentals and strategic supply chain management.
Europe
In Q2 2024, Polybutadiene Rubber (PBR) pricing in Europe exhibited a largely bullish trend, driven by various significant market dynamics. Central to this upward price trajectory was the considerable increase in the cost of butadiene, the primary feedstock for PBR. This surge in butadiene prices, influenced by tighter supply and heightened demand, fundamentally reshaped the cost structure for PBR. Additionally, stronger performances in downstream markets, particularly the automotive and tire sectors, led to increased engagement from market participants in inventory accumulation. The broader economic conditions, including moderate inflationary pressures and anticipations of supply chain improvements, further influenced market sentiment positively. Focusing on Germany, which witnessed the most pronounced price shifts, the overall trend for PBR was marked by rising prices, reflective of a robust demand-supply interplay. Seasonal demand peaks, particularly from the tire manufacturing sector, exacerbated the upward pressure on prices. Despite a moderate -16.1% decrease compared to the same quarter last year, the quarter-over-quarter increase of 10.8% underscores a significant recovery and growth trajectory. Concluding the quarter, PBR was priced at USD 1755/MT FOB Hamburg, reflecting a consistently positive pricing environment. Overall, the pricing sentiment for PBR in Germany during Q2 2024 was decidedly positive, characterized by a stable to bullish outlook driven by strategic market factors and robust downstream demand.
