Butyl Rubber Market Dynamics Report (Recent Commodity Market Intelligence)

I. Price Trends
- Recent Price Movement: On May 21, 2026, the national average ex-factory price of butyl rubber in China stood at RMB 33,460 per ton, up by RMB 80/ton (0.24%) from the previous day. Over the preceding week, prices remained largely stable; however, a minor decline of 0.12% occurred on May 13.
- Historical Price Comparison: In the first half of 2024, the domestic average price of regular butyl rubber was RMB 16,151/ton, representing a 15% year-on-year increase; the average price of halogenated butyl rubber was RMB 22,524/ton, up 11% year-on-year.

II. Supply-Demand Situation
- Supply Side:
- Domestic Plant Operations: Production facilities operated by Jingbo Zhongju, Zhejiang Xinhui, and Panjin Xinhui remain stable; however, certain manufacturers have scheduled maintenance shutdowns, potentially impacting future output.
- Import Situation: Import supply remains constrained due to geopolitical tensions in the Middle East and unplanned outages at European production facilities, sustaining tight market supply conditions.
- Demand Side:
- Downstream consumers predominantly adopt a just-in-time procurement strategy, with limited willingness to build inventory.
- The tire industry—the largest downstream consumer of butyl rubber—maintains steady demand growth; however, overall plant operating rates have declined year-on-year due to pressure from both domestic and export order fulfillment.

III. Market Developments
- Cost Support: High prices for the raw material MTBE continue to underpin butyl rubber production costs.
- Market Sentiment: Holders are increasingly inclined to raise asking prices, yet downstream buyers exhibit growing resistance to elevated raw material costs, resulting in weak and stagnant trading activity.
- Related News & Data Sources: Multiple industry information platforms—including Longzhong Consulting and Jintou Network—continuously update real-time butyl rubber pricing data and provide in-depth market analysis.

IV. Market Analysis & Outlook
- Short-Term Outlook: Supported by ongoing supply constraints and robust cost pressures, butyl rubber prices are expected to remain in a high-level, range-bound pattern in the near term.
- Medium-Term Trend: Gradual replenishment of imported supplies and implementation of domestic plant maintenance schedules may increase available supply; however, demand growth remains modest, likely leading to a narrowing of price gains.
- Long-Term Outlook: The global butyl rubber market is projected to grow steadily, with the market size anticipated to reach USD 4.71 billion by 2031. As a major consumption hub, China’s demand for butyl rubber will continue expanding, driven by growth in the automotive and medical sectors. Nevertheless, domestic producers still rely heavily on imports for high-end grades, and core technologies remain incompletely mastered. Future efforts must focus on strengthening R&D capabilities and upgrading production infrastructure.

V. Forecast
- Price Forecast: In the short term, butyl rubber prices are expected to sustain high-level volatility with limited upside potential. In the medium term, increased supply and evolving demand dynamics may trigger modest price corrections. Over the long term, rising end-market demand and expanded domestic production capacity are expected to support stable, moderate price appreciation.
- Supply-Demand Forecast: Supply-demand imbalances are likely to persist over the near-to-medium term; however, import inflows and stable domestic plant operations will gradually ease supply constraints. On the demand side, the tire industry will maintain steady growth, while emerging applications in healthcare, food packaging, and other sectors will progressively unlock additional demand.
- Market Opportunities & Challenges: For domestic enterprises, enhancing R&D investment, improving product quality, and ensuring process stability are critical to breaking international monopolies and gaining market share. Simultaneously, monitoring global market developments and fostering international collaboration represent vital pathways to broaden market access and strengthen competitiveness.