For the Quarter Ending September 2025
North America
• In the United States, Rubber Process Oil Price Index remained stable quarter-over-quarter, influenced by narrow crude oil price fluctuations.
• Rubber Process Oil production costs faced upward pressure as the Producer Price Index rose 2.6 percent year-over-year in August 2025.
• Demand for Rubber Process Oil was dampened by weak industrial production, up only 0.1 percent year-over-year in September 2025.
• Rising CPI at 3.0 percent year-over-year in September 2025, alongside declining consumer confidence, dampened demand.
• Automotive sector demand weakened in Q3 2025, as North American light-vehicle production declined year-over-year.
• Global observed oil inventories continued to build in Q3 2025, reaching multi-year highs, indicating ample feedstock.
• Strong retail sales, up 5.42 percent year-over-year in September 2025, supported consumer-facing RPO applications.
• The unemployment rate remained low at 4.3 percent in September 2025, supporting consumer spending and indirectly RPO demand.
Why did the price of Rubber Process Oil change in September 2025 in North America?
• Weak industrial production, up 0.1 percent year-over-year, limited Rubber Process Oil demand.
• Crude oil prices fluctuated narrowly; refining margins eased then strengthened in September 2025.
• Declining consumer confidence to 94.2 in September 2025 suggested reduced discretionary spending.
APAC
• In China, the Rubber Process Oil Price Index fell quarter-over-quarter in Q3 2025, influenced by deflationary pressures and accumulated inventories.
• Production costs faced downward pressure from crude oil price fluctuations in August 2025 and accumulated base oil inventories.
• Demand for Rubber Process Oil was supported by strengthened automotive vehicle sales and robust tire market growth in Q3 2025.
• China's Manufacturing Index contracting in September 2025 indicated reduced industrial activity, impacting overall demand.
• Deflationary pressures from CPI falling 0.3% and PPI falling 2.3% year-on-year in September 2025 dampened demand.
• Industrial Production increased 6.5% year-on-year in September 2025, providing some counter-balance for demand.
• Base oil costs experienced mixed dynamics in Q3 2025, with some downward pressure offset by constrained specialized grades.
• The unemployment rate at 5.2% in September 2025 and low consumer confidence (89.6 index) further weakened overall consumer spending.
Why did the price of Rubber Process Oil change in September 2025 in APAC?
• Deflationary pressures from CPI falling 0.3% and PPI falling 2.3% year-on-year in September 2025.
• Accumulated crude oil and base oil inventories in Q3 2025 exerted downward pressure on costs.
• Contracting Manufacturing Index in September 2025 signaled weaker industrial demand despite strong automotive sector.
Europe
• In Germany, the Rubber Process Oil Price Index fell quarter-over-quarter in Q3 2025, due to lower producer prices.
• Rubber Process Oil production costs were mixed; industrial producer prices down 1.7% in September 2025.
• Naphtha feedstock costs strengthened in Europe during Q3 2025, partially increasing production expenses.
• Rubber Process Oil demand outlook weakened due to contracting manufacturing activity in Germany in Q3 2025.
• Industrial production declined 1.0% year-over-year in September 2025, reducing demand for rubber goods.
• Global observed oil inventories built up in Q3 2025, indicating ample supply in the broader petroleum market.
• European refinery throughputs intensified in August 2025, but regional supply tightened from unit closures.
• The Consumer Price Index rose 2.4% year-over-year in September 2025, reflecting rising general costs.
• Retail sales increased slightly by 0.2% year-over-year in September 2025, offering mild demand support.
Why did the price of Rubber Process Oil change in September 2025 in Europe?
• Producer prices for industrial products decreased 1.7% in September 2025, lowering RPO input costs.
• German industrial production fell 1.0% YoY in September 2025, dampening RPO demand.
• Naphtha feedstock costs strengthened in Q3 2025, partially offsetting overall downward price pressure.
