Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
Asia
In Asia, especially China, the Polyisobutylene market faced bearish conditions through most of H1’25. January saw modest gains due to pre-Lunar New Year stocking and higher feedstock costs. However, from February onward, prices declined as isobutylene and crude oil costs dropped sharply.
Demand from downstream sectors like fuel additives and lubricants remained weak post-holiday, and trading stayed cautious. March brought slight improvement in exports, but not enough to shift sentiment. In Q2, April and May continued the soft tone with limited demand and stable inventories. By June, warmer weather supported lubricant demand slightly, helping stabilize prices, though overall sentiment remained muted.
Europe
The European PIB market started H1 on a strong note, with January prices rising due to high crude oil costs and port disruptions. Despite moderate downstream demand, supply constraints pushed prices up. This reversed in February and March as costs eased and inventories improved.
In Q2, demand stayed lukewarm, particularly from rubber and adhesive sectors. April and May saw suppliers lowering offers amid stable operations and weak procurement. June brought minor restocking, but the overall tone remained cautious due to subdued market activity and steady supply.
North America
North America showed more stability. January began firm, supported by cold-weather logistics issues and healthy demand from fuel additives. In February and March, prices softened slightly as production normalized and crude costs dipped. Q2 was marked by balanced supply and demand. April and May showed cautious buying, while June remained flat with steady procurement from lubricants and rubber sectors.
Analyst Insight
According to Procurement Resource, the PIB market may see modest recovery if downstream demand improves, but macroeconomic concerns and cost-side pressures are likely to keep sentiment cautious in the near term.
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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.
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.
Polyisobutylene is produced using isobutylene as monomer and has high resistance to moisture, chemicals, and UV light. Due to its excellent properties, it is employed in various industrial applications. The polymer also has high thermal stability, low permeability of gas and good electrical insulation. These properties are then well exploited in the automotive, adhesives, sealants, and cosmetics industries.
(C4H8)n
Tire industry, Cosmetics, Electronics, Food packaging, Fuel and lubricant additives
Isobutylene polymer
BASF SE, Daelim Co Ltd, TPC Group, INEOS, Kothari Petrochemicals, Braskem, ENEOS Corporation, Zhejiang Shunda New Material Co Ltd
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
The polymerization of isobutylene monomer occurs in the presence of a catalyst at a specific temperature and pressure via cationic polymerization pathway to give polyisobutylene polymer as the final product.
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