Polyisobutylene Price Trend and Forecast

Polyisobutylene Regional Price Overview

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

Polyisobutylene Price Trend for the Q4 of 2024

Asia

In Asia, the Polyisobutylene (PIB) market in Q4’24 was impacted by a combination of fluctuating feedstock prices and softer demand from key downstream industries. The Chinese market, a major consumer of PIB, faced a slower pace of demand, particularly from sectors like automotive and lubricants, which were affected by high inventory levels and cautious market sentiment.
 

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Despite a slight recovery in some regions, supply remained stable as producers were adjusting operations based on demand forecasts. The propylene market, which is a crucial feedstock for PIB production, experienced volatility, influencing the overall PIB price trend. Industrial buyers in Asia adopted a conservative purchasing approach, further limiting price increases.

Europe

In Europe, the Polyisobutylene market showed a relatively stable but slightly bearish sentiment throughout Q4’24. The automotive sector, a key end-user of PIB, witnessed moderate growth, driven by seasonal factors, but demand from other sectors remained weak. The general industrial slowdown, exacerbated by rising energy costs and logistical disruptions, further pressured the PIB market. Producers were focused on managing inventories efficiently while responding to fluctuations in propylene prices, which directly impacted PIB production costs. While the Butyl Rubber and lubricant sectors continued to use PIB in their formulations, the overall demand in Europe remained subdued, with only gradual price movements observed.

North America

In North America, the PIB market mirrored trends observed in other regions, with a downward pressure on prices driven by higher inventory levels and cautious demand. The U.S. automotive industry, although showing signs of growth in vehicle sales, did not see a corresponding increase in PIB consumption. The lubricants and fuel additives industries, which are significant PIB consumers, were also slower in their procurement activities due to economic uncertainties and high stock levels. Propylene prices fluctuated, affecting PIB production costs, but overall, the market remained under pressure as suppliers reduced their production rates in response to the slower demand. The PIB market in North America was characterized by a cautious outlook heading into the end of the year.

Analyst Insight

According to Procurement Resource, the Polyisobutylene market is expected to remain under pressure, influenced by fluctuating feedstock prices and cautious demand from key end-use sectors.
 

Polyisobutylene Price Trend for the Q3 of 2024

Asia

The Asian polyisobutylene market exhibited robust growth during Q3'24, primarily driven by the strong upstream isobutene prices following Saudi Aramco's feedstock price adjustments.

The market dynamics were characterized by sustained demand from the lubricant additive and adhesive sectors. Manufacturing costs increased substantially due to elevated raw material prices, forcing producers to implement multiple price revisions. The market saw particularly strong momentum in the latter part of the quarter as winter preparations drove demand for PIB-based products, especially in the automotive and industrial sectors.

Europe

European polyisobutylene prices maintained an ascending trajectory in Q3'24, though with notable fluctuations. The market drew significant support from increased upstream isobutene costs and consistent demand from the automotive sealant and adhesive industries. Supply tightness emerged as several key producers underwent scheduled maintenance, creating periodic price spikes. The escalating energy costs in the region further contributed to higher production costs, compelling manufacturers to maintain firm pricing policies.

North America

The North American polyisobutylene market demonstrated steady appreciation during Q3'24, marked by incremental price increases. The market gained substantial support from rising feedstock costs and robust demand from the lubricant and automotive sectors. Supply remained somewhat constrained due to ongoing logistical challenges and occasional production disruptions at key facilities.

Analyst Insight

According to Procurement Resource, the global Polyisobutylene market is projected to maintain its upward momentum into the next quarter, supported by three key factors: strengthening upstream isobutene prices, sustained demand from end-use industries, and ongoing supply optimization efforts by major producers.
 

Polyisobutylene Price Trend for the Q2 of 2024

Asia

In Asia, the polyisobutylene market, driven by the oscillating prices of isobutene, experienced significant fluctuations during the second quarter of 2024. The initial period saw a decline in isobutene prices, primarily due to reduced crude oil prices and excessive inventory levels in the Indian market. This downturn in the feedstock cost directly impacted polyisobutylene prices, leading to a downward trend.

The market's supply side remained robust due to the persistent inventory pressure, which further prevented any significant price increases. Although there were brief moments of stability, the overall sentiment in the polyisobutylene market remained subdued, reflecting the bearish outlook of its precursor, isobutene.

Europe

In Europe, the polyisobutylene market mirrored the fluctuating trend observed in the isobutene market throughout the second quarter of 2024. After a relatively stable first quarter, the second quarter experienced a downturn as the influence of upstream crude oil prices diminished. With settled upstream dynamics, the demand outlook became the primary driver for the polyisobutylene market.

Despite stable inventories, demand remained low to moderate, exerting downward pressure on prices. The European market lacked significant momentum, resulting in a constrained price range for polyisobutylene. The market's overall sentiment remained lethargic, driven by the subdued performance of isobutene prices.

North America

In North America, the polyisobutylene market followed a similar trajectory to the Asian and European markets during the second quarter of 2024. The market experienced slightly better conditions in the first quarter, but the overall sentiment turned dull in the second quarter.

The stability in the chemical and solvent industries maintained a buoyant supply and demand dynamic. However, the prices of polyisobutylene were largely influenced by the declining trend in isobutene prices. The initial positive outlook was overshadowed by a subsequent downturn as feedstock prices continued to fall. This resulted in a mostly tepid market performance for polyisobutylene in the US, with minimal fluctuations.

Analyst Insight

According to Procurement Resource, the price of Polyisobutylene is estimated to decline as the fall in crude oil prices, coupled with excess inventories, might play a significant role in depressing isobutene prices, which directly impacted polyisobutylene.
 

Polyisobutylene Price Trend for the Q1 of 2024

In the Asian markets, particularly, India and China, the price performance was a little underwhelming for Polyisobutylene. The starting inventory levels for Polyisobutylene at the beginning of the quarter were quite high. So, that significantly reduced the upstream cost support despite a rise in crude oil prices. On top of that, the downstream demands were largely lackluster for the most part of Q1’24.

The cosmetics and packaging industries responded poorly with lacking demands. Chinese New Year’s extended holidays were also keeping the factory days short, another factor why the demands were meek, particularly in the first half of the quarter. The second half of the quarter saw some occasional and limited improvements that were attributed to the rise in crude oil prices. However, with bleak demands, the overall market sentiments remained dull and muted.

Europe

Feeding on to the surge of crude oil and petroleum product prices in the region, the polyisobutylene prices also inclined in the European markets. The currency depreciation against the US Dollar was also a pivotal reason that the commodities got expensive in the European markets.

The major downfall in the manufacturing activities in Germany led to momentous dips in the polyisobutylene price graph. However, the maintenance shutdowns and closures of several manufacturing plants in the region hurdled the supplies a little. Other than this, the price trend remained mostly on the positive side of the curve. A moderate market performance was witnessed in Q1’24.

North America

Global prices of polyisobutylene rose during the first quarter of 2024 due to several factors, including increments in feedstock propylene prices, and this was reflected in the US polyisobutylene market as well. While prices of feedstock propylene remained stable in the North American market, they surged in the Asian and European markets throughout Q1 of 2024, as the gap between the supply and demand dynamics was still narrower here. The manufacturing and automotive sectors were able to provide some demands, while the other shipping and logistic challenges in the international markets also affected the pricing dynamics for polyisobutylene in the US market.

Analyst Insight

According to Procurement Resource, the Polyisobutylene price trends will remain anchored in the coming months; not much change is anticipated in the market behavior.
 

Polyisobutylene Price Trend for October - December of 2023

Asia

The limited demand and excessive stock availability of polyisobutylene worried the traders of Asian countries and propelled them to offer huge discounts. Even then, the rates of procurement from the downstream industries were meek as they themselves moved towards decreasing their production rates amid muted demand.

The upstream crude oil and feedstock prices also failed to extend any support to the polyisobutylene market, and eventually, the polyisobutylene price trend faced southwards.

Europe

The oscillation in the European EV batteries sectors projected a similar dynamic in the polyisobutylene price trend in the last quarter of 2023. The number of orders from the downstream polymer, such as MTBE industries, kept on declining with each month of the quarter while the production of polyisobutylene kept on inclining. The Pharma producers were also reluctant to place orders in bulk, and thus, the downfall of polyisobutylene price trend was inevitable.

North America

The purchasing index of consumers in the US suggests that the region is experiencing a contraction in spending budgets. The start of the fourth quarter of 2023 was mild for the polyisobutylene market, but as the quarter progressed, the polyisobutylene market prices started to waver, majorly towards the lower end of the graph. The cause of this decline in the polyisobutylene market was the slowdown in the industrial sector of North America and decreased lending activities by the banks amid surging rates of interest.

Analyst Insight

According to Procurement Resource, the price trend of Polyisobutylene are likely to be driven by the slow momentum of global downstream automotive and pharmaceutical industries.
 

Polyisobutylene Price Trend for the July - September of 2023

Asia

The trend of polyisobutylene prices was dictated by the market activities of its feedstock material, isobutylene. The trajectory of the polyisobutylene price graph remained stable during the third quarter of 2023.

The consistency in demand from the end-user industries and steady supply of the product helped in maintaining the supply-demand equilibria. However, in the middle of the third quarter, the fluctuating condition of the economy and cuts in crude oil exports resulted in the scarcity of raw materials, and thus, with limited stock availability and positive demand, polyisobutylene prices surged.

Europe

Due to the onset of summer holidays in the European countries, the manufacturing activities of polyisobutylene slumped but the rates of procurement of polyisobutylene were moderate. In addition to this, with the rise in the prices of upstream products and stress on the market functioning due to the rise in the cost of crude oil and cuts in its production, the polyisobutylene price graph was able to trace an inclining trajectory.

North America

During the initial phase of the third quarter of 2023, the supply of polyisobutylene was affected by the decline in production rates and the ill effects of poor economic conditions in the region. During this phase, the rates of inflation and interest charged by banks are inclined by several folds, hampering the polyisobutylene price trend.

The supply chains also suffered from the decline in water levels in significant exporting routes of polyisobutylene that delayed the shipments and weakened the market sentiments. On the other hand, the demand from the downstream industries remained high, giving the polyisobutylene price trend its required momentum.

Analyst Insight

According to Procurement Resource, the price trend of Polyisobutylene are expected to experience a surge in the upcoming quarters on the back of positive demand from the end-user industries.
 

Polyisobutylene Price Trend for the First Half of 2023

Asia

Polyisobutylene prices in the first quarter of 2023 were negatively impacted by the ample availability of the product in the Asia-Pacific market and the slow movement of the automotive and related sectors.

The influx of cheap imports and falling market dynamics also aided the fall in prices in the initial phase. The later phase of the first quarter was much more favorable for the growth of polyisobutylene prices as the economy returned to its recovery phase, and there was some positive demand outlook observed in the automotive sector.

The cost of feedstock materials and export rates also supported the rising prices. But in the first month of the second quarter, the trend declined as the number of inquiries slid. The rest of the quarter fell in the footsteps of the later phase of the first quarter as support from the inclining global economy and increased sales in the automotive industries pushed the prices into an inclining trajectory.

Europe

The first quarter of 2023 proved to be favorable for the price trend of Polyisobutylene as the purchasing appetite of buyers improved. The increased rates of consumption and high cost of feedstock materials also supported the polyisobutylene market. In the second quarter, the market witnessed a dramatic decline.

This fall in the trend was attributed to the high rates of inflation, hike in interest rates, and increasing cost pressure from the feedstock market. In addition, the rise in natural gas prices, falling consumption rates, and an overall low appetite of buyers caused the price trend of Polyisobutylene to fall.

North America

The demand dynamics of Polyisobutylene in the first quarter improved, and with a rise in the purchasing capacity of buyers, the price trend of Polyisobutylene rose. But the second quarter did not follow this trend as the feedstock market remained weak throughout the second quarter. The rise in the level of inventories, strict monetary policies adopted by the government, and weakening of economic conditions eventually led to the fall in the prices of Polyisobutylene.

Analyst Insight

According to Procurement Resource, the price trend of Polyisobutylene is estimated to follow a mixed trend. The prices of Polyisobutylene will be majorly affected by the demand from the end-user industries and global economic conditions.

Procurement Resource provides latest prices of Polyisobutylene. 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.