For the Quarter Ending March 2022
North America
Polyisobutylene witnessed strong market sentiments in the United States during Q1 2022, in contrast to the last quarter of 2021. Polyisobutylene price showed an upward trend owing to increased demand for Polyisobutylene in the manufacture of inner tubes of a tire. High upstream Naphtha prices, backed by the rise in the prices of feedstock Isobutylene and a scarcity of supply in the region because of the Russia-Ukraine conflict, had a considerable influence on production rates and operational costs. Furthermore, South Korea, a significant exporter, faced scarcity in the domestic market due to covid cases' resurgence in the last quarter. As a result, high freight charges interrupted supply chains, resulted in supply shortages in the region. Polyisobutylene CFR Texas (USA) prices were assessed at USD 2145/MT during March 2022.
Asia-Pacific
Prices of Polyisobutylene showed an upward trend in the Asia-Pacific region during the first quarter of 2022. Firming upstream Naphtha prices and the feedstock Isobutylene prices, coupled with the supply scarcity in the region on the back of the Russia-Ukraine crisis, had a significant impact on the production costs and rates. Demand from the tire industry remained robust throughout the first quarter of 2022. Increase in raw material and high port congestion in South Korea hampered the supplies in the other parts of the region. Additionally, supply chains were affected by high freight charges because of the container shortage, resulting in the supply shortfall in the region. Polyisobutylene CFR Qingdao (China) prices were estimated at USD 2050/MT during March 2022.
Europe
During the first quarter of 2022, Polyisobutylene prices in Europe continued to increase due to the crippling availability of the product in the region. Demand from the downstream tire industry increased and remained stable throughout Q1 2022. In addition, the Russia-Ukraine conflict had affected the upstream Naphtha prices, followed by the rise in feedstock Isobutylene prices, which impacted the market dynamics and resulted in the increased costs of Polyisobutylene in the region. Polyisobutylene FOB Hamburg (Germany) prices were settled at USD 1955/MT in the last month of the first quarter 2022, up 4% from the previous quarter. Furthermore, certain production units reduced their running rates due to high energy prices in the European region.
For the quarter Ending December 2021
North America
In North America, the prices of Polyisobutylene remained strong throughout the quarter with little deflection towards the last week of December. Feedstock Isobutylene and Naphtha prices were also strong. Naphtha prices have stabilized in the US market on the back of stagnant demand for heavy naphtha as a reformer feedstock on the US Gulf coast. While the domestic demand picture has been little changed, naphtha prices have surged by a slight margin along with the underlying pricing basis, Gulf coast conventional gasoline. Heavy naphtha prices for US FOB Texas in December are reported to be USD650 per metric tonne. Downstream Automobile and Adhesive industries were heard to be operated strongly in this quarter with increase in demand from the consumer’s end.
Asia Pacific
In Q4, the demand and prices remained robust towards the first half of quarter. Upstream Naphtha and Isobutylene prices robust with increase in consumption from the downstream automobile industries. Asian naphtha market is scheduled to see ebbing demand from olefin market with the beginning of year-end occasions, but the new upturn in the reforming spread had attracted gasoline blending demand. Demand for naphtha as a steam cracker feedstock is relied upon to endure a shot as the key CFR Northeast Asia ethylene and C+F Japan naphtha spread narrowed $5/MT day on day to $308/MT at the Asian close Dec. 24. Increased demand for polyisobutylene from key industries, including automotive, construction, cosmetics, and aerospace, in emerging economies such as China and India had kept the market operated.
Europe
In Q4, the market was vigorous with expansion in crude prices compared with Q2 and Q3. The inventory all through the region was impeded on account of logistics issues with shortage of carriers and port and appropriation centre workers which impacted the PolyIsobutylene market. Feedstock Isobutylene prices in Germany maxed in November where prices were hovering around $1086/ton FD Hamburg-$ 1148/ton FD Hamburg. The downstream Construction and Automobile market was operated stably in this quarter with increase in sales and revenue of the major end user enterprises. However, towards December, the expenses started to slip due to Sufficient stock and frail market demand which pushed the value pattern downwards.
