Asia
In Asia, Polyisoprene prices followed a fluctuating path throughout 2024. In the first half of the year, prices climbed steadily due to strong demand from the automotive and tire industries, combined with rising feedstock costs, especially butadiene. Weather-related supply chain disruptions also supported price increases during this period. However, the trend shifted in the second half, particularly in Q4, as demand weakened in key markets like Japan.
The automotive sector saw declining sales and subdued trading activity. Despite earlier gains, prices began to cool due to adequate inventories and cautious buying behaviour. Inflationary pressures and earthquake-related disruptions also affected market sentiment, keeping overall pricing on a softer note towards the end of the year.
Europe
In Europe, the Polyisoprene market experienced a largely bullish trend during 2024. The first half saw consistent price increases supported by rising demand from the automotive and tire industries. Limited inventories and seasonal industrial activity further lifted prices.
The European Central Bank's easing policies encouraged investment, indirectly boosting demand. However, in the final quarter, momentum slowed as demand from both automotive and construction sectors weakened. Ongoing economic uncertainty, along with logistical issues like rail disruptions and adverse weather, contributed to a more cautious and balanced market. Prices stayed relatively stable in Q4, reflecting a shift from bullish to more neutral conditions.
North America
North America’s Polyisoprene market saw a volatile year. The first half was marked by falling prices, driven by weak demand and high inventories. Inflation and economic uncertainty weighed heavily on downstream consumption. Q3 brought mixed results prices dipped initially due to oversupply but recovered later as supplier activity rose and production costs increased. However, Q4 again showed signs of strain.
Downstream demand remained soft, especially in the automotive sector, while port strikes and reduced trading activity in December impacted supply chains. Despite some improvement in market sentiment, prices remained under pressure through the year-end.