Neoprene Rubber Price Trend and Forecast

Regional Price Overview

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

Neoprene Rubber Price Trend for the Q1 of 2024

Asia

In most of the Asian market, the neoprene rubber price trend experienced an upward trend fueled by heightened demand from the automotive and tire sectors. This unexpected surge in the demand dynamics further led to inventory shortages in the region, fueling an uptrend in the prices of neoprene rubber.

Neoprene Rubber Price Chart

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To address this, trading activities among manufacturing units intensified, and producers increased production rates to maintain supply-demand equilibrium. However, elevated crude oil prices increased production expenses for neoprene rubber in the later stages of the quarter.

In China, the neoprene rubber market saw slight fluctuations due to a rebound caused by increased domestic downstream industry prices amid the limited downstream procurement enthusiasm. Notably, the shutdown of several production plants amid the onset of the Chinese New Year holiday season further contributed to the oscillating dynamics of the market. On the demand side, the overseas tire market showed signs of improvement post-Chinese New Year, with steel tire enterprises witnessing a surge in overseas orders, accelerating the industry's momentum and resumption rates.

Europe

During the first quarter of 2024, the German neoprene rubber markets exhibited resilience amid fluctuating market dynamics and soaring cost of production. While challenges such as inflationary impacts and standard demand for automobiles persisted in the market, the tire industry maintained remarkable sales figures supporting the destocking of the inventories and helping the manufacturers maintain their production rates.

Throughout the quarter, the traders remained vigilant, adjusting strategies to navigate through the challenges of the market and sustaining their present price quotations of neoprene rubber. However, the stagnancy of the neoprene rubber market provided confidence to drivers of the market, reflecting the market's ability to withstand challenges and maintain stability amidst uncertainties.

North America

In North America, neoprene rubber prices followed the global trends during the initial phase of the first quarter. The trajectory fluctuated slightly around a mean value amid the changing global trading landscape. However, in the later stages of the quarter, the neoprene rubber prices surged due to increased purchasing activities from downstream sectors.

On similar lines, rising crude oil prices in the upstream market elevated the energy costs. In the US, despite a slight decline in vehicle sales compared to the last quarter, the market maintained its rising quotations of neoprene rubber, supporting its pricing trajectory. Additionally, the improving scenario of consumer confidence and a significant reduction in the inflationary pressure on the manufacturers further boosted the uptrend in the prices of neoprene rubber in North America.

Analyst Insight

According to Procurement Resource, the price trend of Neoprene Rubber is expected to improve significantly with the surge in demand from the downstream automotive and tire industries in the near quarters of 2024.

Neoprene Rubber Price Trend for the October - December of 2023

Asia

The trajectory of the last quarter of 2023 clearly showed the effects of the increase in import activities and the decline in the outlook for neoprene rubber demand. Still, the Asian market fared better than the global market, especially in China.

The condition of neoprene rubber market in India was, however, feeble but the Japanese and Indonesian markets showed slight improvements in their market dynamics. India hit a new low in the most recent quarter, which worried traders and pushed them to decrease their neoprene rubber prices. The oscillations in the price trend of neoprene rubber were further amplified by the tire industries' downward spiral.

Europe

In December 2023, neoprene rubber prices in Germany declined by a huge percentage as it was influenced by the unfavorable cost of natural gas. In addition to this, the automotive sector faced several challenges with a significant double-digit percentage decrease in new car registrations.

The European countries further experienced persistent rise in inflation due to which the German economy shrank by 0.3% in the last quarter of 2023. On similar grounds, German construction activity continued to decline in 2023 due to market uncertainty, high-interest rates, and decreased demand, contributing to the overall bearish trend in neoprene rubber prices.

North America

Due mostly to decreased pricing from key exporting countries in Asia and Europe, neoprene rubber prices in the U.S. market showed a fall after stumbling throughout the fourth quarter of 2023. Economic difficulties surfaced despite a favorable trend in U.S. car sales.

The sustained momentum of car sales alone was not able to take the neoprene rubber prices upwards as the sharp decline in the number of new orders of other downstream industries indicated problems in both domestic and foreign demand.

Analyst Insight

According to Procurement Resource, the price trend of Neoprene Rubber are estimated to be bearish in the forthcoming quarters as the scenario of downstream industries and global economy do not offer much relief to the pricing fundamentals.

Neoprene Rubber Price Trend for the July-September of 2023

Asia

The Asian neoprene rubber market witnessed consistent fluctuations during the third quarter of the year 2023. After having a strong start at the beginning of the quarter in July’23, the neoprene rubber prices faltered in the next month. The market costs of feedstock chloroprene and the downstream demands from the consumption sectors drove these fluctuations in the neoprene rubber price graph.

Since the consuming industries were posing good demands initially, the suppliers made bulk purchases anticipating higher revenues; however, contrary to this anticipation, the market demands slid in the following month, taking the price trend down along with them. So, after these fluctuations for the majority of the period, the price graph almost plateaued at the end of the quarter as the gap between supply and demand dynamics reduced considerably. Overall, mixed market sentiments were observed.

Europe

Following in the Asian footsteps, the European neoprene rubber market also exhibited varied price trend in the entire period of Q3’23. The first half of the quarter was relatively more inclined than the second half of the quarter.

The high demands led suppliers to increase supplies which saturated the inventories. This gradually became the down-pushing factor for neoprene rubber price trend in the later months of the quarter. So, the general market sentiments were wavering throughout the quarter.

North America

The North American neoprene rubber market could not behave any differently than other global markets as the prices here, too fluctuated in a similar manner. After elevating initially, the price graph faltered from the middle of the quarter onwards.

Analyst Insight

According to Procurement Resource, the Neoprene Rubber market is going to remain demand-driven going forward as well. The price trend will likely continue to fluctuate.

Neoprene Rubber Price Trend for the First Half of 2023

Asia

The neoprene rubber prices in the first quarter rose till February and then declined in March. This abrupt fall was due to the introduction of Tesla in the automotive sector, which caused a pricing war in the region with the local manufacturers. This led to the fall in the prices of automobiles and the de-stocking of products that negatively impacted the price trend of neoprene rubber. However, the second quarter proved to be in favor of the rise in the neoprene rubber market. Increased procurement of the product from the tires sector, high procurements from the pharmaceutical and automotive sectors, and a significant incline in industrial activities supported the surge in the price trend of neoprene rubber.

Europe

The price trend of neoprene rubber grew steadily in the first quarter of 2023, as it was supported by the rise in demand from the downstream industries. Industrial activities saw a rise in their production rates and sales as the sectors seemed to be on a recovery path after a long stretch of stagnancy. But the second quarter was not in favor of this inclining trajectory as the neoprene rubber market witnessed a gradual fall in its prices. The industrial sector lost momentum, and with the decline in energy and production costs, the price trend of neoprene rubber fell.

North America

In North America, the prices of neoprene rubber fluctuated throughout the first and second quarters of 2023. Initially, the trend rose with the recovery of the automobile sector and the enhanced influx of semiconductors in the market, but the closure of two major banks in the US caused economic stress on the industrial sector. The surge in inflation and, in turn, the interest rates and the shortage of semiconductors in the second quarter negatively impacted the prices of neoprene rubber.

Analyst Insight

According to Procurement Resource, the price trend of Neoprene Rubber is estimated to follow a mixed trajectory as the demand from the automotive sector looks uncertain amid the challenging global economic conditions.

Procurement Resource provides latest prices of Neoprene Rubber. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.