Texas, USA: In September 2024, the US Butyl Rubber MV 32-51 market experienced an upward trend, driven by an imbalance between supply and demand. A significant factor contributing to this rise was the surge in demand for Butyl Rubber MV 32-51 from the downstream pharmaceutical sector. This growing demand for pharmaceuticals helped buoy the market. However, the automotive sector, another key downstream consumer of Butyl Rubber for tire production and inner tubes, witnessed a decline in activity during the same period, likely due to weaker market conditions in the automotive industry, further disrupting the supply-demand dynamics in the Butyl Rubber MV 32-51 market.
In September 2024, the US Butyl Rubber MV 32-51 market showcased a price increase of 0.89%, reaching USD 2260/MT (FOB-Texas). This rise was driven by a combination of factors, including disruptions from the ongoing hurricane season, which affected the supply chain of Butyl Rubber MV 32-51 and further tightened the market. However, the downstream sectors showed mixed trends during the month, with the pharmaceutical sector experiencing strong demand for Butyl Rubber MV 32-51 which supported upward price momentum and maintained a bullish market outlook. In contrast, the automotive sector faced a decline, impacted by fewer selling days and reduced consumer spending due to inflationary pressures and higher interest rates, contributing to the overall weaker demand from that segment.
In September 2024, vehicle sales in the US dropped by 12.3% year-over-year, totaling 1,172,101 units. The decline was partially attributed to fewer business days (23 compared to 25 the previous year), as well as high vehicle prices, tighter credit conditions, and rising borrowing costs that strained the retail market. Additionally, Hurricane Helene, which caused severe flooding in several states, further disrupted sales during the critical end-of-month period for dealerships. Therefore, vehicle inventory levels rose significantly, reaching 2.8 million units, a 40% increase compared to the previous year, with 77 days of inventory available. This decline in automotive sales, influenced by the calendar shift of the Labor Day weekend into August, might have put downward pressure on Butyl Rubber MV 32-51 prices. However, the overall market trend for Butyl Rubber MV 32-51 remained positive, supported by the surge in demand from the pharmaceutical sector, which offset the weaker automotive sector and sustained the upward momentum in prices of Butyl Rubber MV 32-51.
According to ChemAnalyst, the US Butyl Rubber MV 32-51 market is expected to continue its bullish trend, driven by an anticipated rise in demand from key downstream sectors such as Automotive and Pharmaceuticals. Despite recent challenges in the automotive industry, including reduced sales and economic pressures, demand is projected to recover, boosting the consumption of Butyl Rubber MV 32-51 for tire production and other automotive applications. Meanwhile, the pharmaceutical sector is expected to maintain strong demand for Butyl Rubber MV 32-51, further supporting the upward trajectory in market sentiment for Butyl Rubber MV 32-51.
