Butyl Rubber Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Butyl Rubber in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Butyl Rubber Price Trend for the Q1 of 2024

Asia

In the majority of Asian countries, the butyl rubber price trend faced subdued demand, particularly from the automotive and tire sectors. Additionally, ample inventories and stable manufacturing output initially also contributed to the dim outlook of the butyl rubber market. In view of low procurement rates and to avoid oversupply risks, the producers reduced their production rates as the quarter progressed, and the trading community also focused on utilizing existing inventories. By the end of the quarter, even the traders had to reduce their pricing quotations as the market dynamics failed to stabilize.

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On the cost side, international crude oil costs surged in March due to positive US EIA inventory data and geopolitical tensions, raising the cost of production of butyl rubber and its derivatives. In China, on the other hand, with the expansion of the overseas consumer base and the rise in the profit margin from the export volumes due to high demand and limited trading activities, the butyl rubber prices experienced a slight bullish trend. These positive indications from the international markets raised optimism among domestic manufacturers and thus resulted in a positive trend in butyl rubber prices.

Europe

In the European countries, the butyl rubber prices experienced a downward trajectory, signaling a bearish market sentiment of the market in the initial months of the quarter. Despite a surge in demand for passenger cars in February due to widespread discounts and an expanded model selection, the demand dynamics of the automotive sector remained under the red zone, supporting the oscillations in the butyl rubber price trend in the first half of the quarter.

The other downstream industries also presented a mute requirement for the commodity in the aforementioned phase. However, the rise in the cost of feedstock chemicals and crude oil prices during this period led to an elevation in the production costs for butyl rubber. This prompted the traders to raise their quotation, but the rise in stockpiles and the sluggish nature of end-user industries limited this incline in the pricing trajectory of butyl rubber.

North America

In the US Butyl Rubber market, prices surged by a significant margin, fueled by strong demand from the automotive and tire sectors. Along with this, the quick consumption of existing inventories raised the bar of production by the manufacturing sector to meet domestic and international demand for butyl rubber. However, the major driver of the commodity, the electric vehicle market, failed to meet the expectations of the traders, particularly due to limited affordability and a narrow consumer base, and thus extended only limited support to the market.

Analyst Insight

According to Procurement Resource, the price trend of Butyl Rubber is estimated to oscillate in a narrow range in the forthcoming quarters as even though the automotive sector is presenting suitable demand of the commodity but the other economic and geographic factors might hinder the growth trajectory of the market.

Butyl Rubber Price Trend for the October - December of 2023

Asia

In the past quarter, the butyl rubber market registered a significant rise in its prices. However, the advent of the fourth quarter failed to maintain this momentum of the market as the butyl rubber prices registered a remarkable fall.

The downstream industries, which presented substantial demand in the third quarter, failed to support the trajectory of butyl rubber price trend in the fourth quarter of 2023. Additionally, it was also seen that the automotive industries struggled at the end phase of the year with their rates of manufacturing and overall market dynamics, as was evident in the downfall of the butyl rubber price trend.

Europe

The European butyl rubber price trend experienced a downturn after struggling during the initial phase of the fourth quarter of 2023, primarily due to cautious purchasing by the buyers and uncertainties in downstream automotive demand.

The traders thus had to adjust their prices along with the reduced export activity, which in turn lowered their profit margins. Another challenging facade came in the form of elevated inventories that pushed the manufacturers towards lowering their production units, hampering the movement of the butyl rubber price curve.

North America

The butyl rubber prices in the US only stabilized during the end of the fourth quarter after registering a consistent fall throughout. The butyl rubber market gained stability on account of modest demand, particularly from key sectors like tire and automotive manufacturing. However, excessive stockpiles in these industries continued to be a struggle for the traders. On the other hand, stagnancy in the prices of the raw materials and a decline in energy costs had a positive impact on the production costs and, in turn, the butyl rubber price trend.

Analyst Insight

According to Procurement Resource, the price trend of Butyl Rubber are expected to inch a little higher in the forthcoming quarters as the stabilization in the production costs and estimated revival of automotive industries will have a positive impact on the butyl rubber price trend.

Butyl Rubber Price Trend for the July-September of 2023

Asia

The butyl rubber price trend surged in the third quarter of 2023. The northward journey of the prices was supported by increased interest and sales in the automotive sector. The cost of production, on the other hand, fell consistently on account of the declining rates of feedstock costs. However, due to the rise in demand and the positive outlook of the Asia Pacific market in terms of rates of production and working of supply chains, the overall trend of prices of butyl rubber faced upward.

Europe

The butyl rubber prices started the third quarter with good momentum, but as the quarter progressed, this trend reversed. The butyl rubber prices struggled with the feeble movement of the construction sector, which affected the entire dynamics of the European markets. However, during the initial phase, the rates of procurement from the automotive industries proved as an anchor, but this was not sufficient during the later phase. In addition to this, the rise in the cost of feedstock materials and plunging demand resulted in the downfall of the butyl rubber price trend.

North America

The movement of the butyl rubber price trend followed an oscillating trajectory. In the first months, the decline of the butyl rubber prices was steep due to the excess availability of the product in the region. In addition to this, the decreasing cost of feedstock materials and the performance of the manufacturing sector increased pressure on traders.

But, towards the end phase, the demand from the downstream domestic and overseas markets stabilized. Further, the automotive sector also showcased improvement in its market dynamics, leading to a substantial incline in the prices of butyl rubber.

Analyst Insight

According to Procurement Resource, the price trend of Butyl Rubber are expected to take on a fluctuating trend as the direction of trajectory is dependent on the demand from the downstream industries and the cost of feedstock materials.

Butyl Rubber Price Trend for the First Half of 2023

Asia

The downstream demand for butyl rubber in the Asia-Pacific region in the first quarter drove up the price trend of butyl rubber. The major influence in this rising price of butyl rubber was the demand from automotive and other related industries. In addition to this, the overall market sentiment also seemed to be moving in a positive direction in this quarter. However, the second quarter did not prove to be in favor of this trend.

The production rates of butyl rubber matched the demand for the product and eventually surpassed it, creating huge stockpiles of it in the market. The introduction of different players in the region further worsened the conditions and thus increased the competitiveness of the market. Due to these feeble conditions, the market players were forced to sell their produce at a compromised rate, and thus, the price trend of butyl rubber faced southwards.

Europe

In Europe, the strong supply chains and declining downstream demand exerted a negative influence on the prices of butyl rubber in the first quarter of 2023. The level of stockpiles and negative market conditions proved to be a problem for the market for butyl rubber.

In the second quarter, the price trend fluctuated due to the loss of momentum in the automotive and tire industries. However, the pharmaceutical industries and other related sectors supported the butyl rubber market in the month of May. But then the poor performance of the construction sector and overall low demand caused the price trend of butyl rubber to move downwards.

North America

The first quarter witnessed a mixed trajectory in the market for butyl rubber as the prices were stagnant at first, then rose, and then declined. The major influencing factor of this trend was the fluctuations in demand from the automotive sector, which were, in turn, influenced by the availability of semiconductors.

The challenging financial conditions of the market further proved to be a challenge for the price trend of butyl rubber. However, the second quarter showcased sustainable growth in the butyl rubber market. The market activities of the automotive and tire industries gained momentum, and the consumers also showcased confidence via their increased buying potential. In addition to this, the supply sector also supported the rising market movement of butyl rubber, and thus, as a result, the price trend of butyl rubber inclined.

Analyst Insight

According to Procurement Resource, the price trend of Butyl rubber is estimated to follow an oscillating trend as the demand for butyl rubber in the market is dependent on the fluctuating market dynamics of the automotive and other related industries.

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