For the Quarter Ending June 2023

North America

The Neoprene Rubber prices showcased mixed market momentum during the 2nd quarter of the year. In April, the Neoprene Rubber prices plunged drastically, only to make a recovery in May, followed by a consistent rise in June. The market sentiment of Neoprene Rubber improved in the second half of the quarter on the back of an uptick in sales in the automotive industry. Concerns remained high about whether rising interest rates would significantly reduce spending, but recent indicators suggested that consumers were comfortable enough to spend large purchases. The automotive industries faced acute shortages of semiconductors earlier this year amid concerns about availability, which impeded mass assembly until the latter part of the year when the situation stabilized. A combination of better supply and rising consumer appetite supported strong growth going into the next fiscal year. External factors, such as the collapse of two major financial institutions at the end of Q1, hurt the economy in Q2. However, a temporary suspension of the nation's debt ceiling helped avert a recession. Inflation levels measured by the consumer price index (CPI) in the USA increased by only 0.1% last month after a significant increase in April of 0.4%.

Neoprene Rubber Prices: https://www.chemanalyst.com/Pricing-data/neoprene-rubber-1309

APAC

Asia-Pacific Region Neoprene Rubber prices increased steadily throughout Q2 2023. The prices rose consistently during the quarter and made the most improvements towards the end of the quarter. In April, Neoprene rubber costs increased due to strong downstream demand. During the month, the demand for tires increased, which led to an increase in the demand for Neoprene Rubber. Likewise, In May, the use of Neoprene Rubber increased significantly due to the increase in demand from the pharmaceutical and automotive sectors. The significant increase in the growth of these sectors led to a rise in the requirement for Neoprene Rubber, resulting in its increased market price. In June, Neoprene Rubber prices in Japan increased significantly due to an increase in demand from both domestic and international markets. Domestic Neoprene sales in Japan increased by 19.8% in June compared to June of the previous year. As import orders increased from Asian countries such as South Korea, India, etc., the procurement of Neoprene Rubber surged further, eventually causing an increment in its market value.

Neoprene Rubber Prices: https://www.chemanalyst.com/Pricing-data/neoprene-rubber-1309

Europe

During Q2 2023, Neoprene Rubber's price decreased consistently in the European market. In April, the European market prices decreased despite the positive market sentiments of the downstream automobile industry. The decrease in prices was due to the replacement tire market's poor performance, which resulted in fewer purchases of the material. In May, the European market price decreased again. The decrease in input costs combined with decreasing energy prices led to a significant decrease in the production cost of the material, resulting in a decrease in the market value of the material. Furthermore, in May, the new order inflows decreased significantly, the most significant decrease in the last six months, and the Eurozone exports decreased significantly. All these factors contributed to the decrease in the prices of the material. In June, the European market experienced weak demand for neoprene rubber, despite the positive market momentum of the downstream automotive industry due to the surplus availability of inventories.