How US Economic Headwinds Impact Halo Butyl Rubber Market?

Texas, USA: American auto sales fell significantly in March 2023 compared to February as economic headwinds replaced supply chain issues as the industry's biggest challenge. Consequently, the demand for Halo Butyl Rubber remained subdued in the US market. The US Federal Reserve kept up its pace of hikes when it raised the benchmark federal funds rate by a quarter point to 4.75-5.0 to contain inflation. As a result, customers now pay higher interest rates to finance cars. As the Automotive industry is one of the major downstream industries of Halo Butyl Rubber, the fluctuating procurement scenario has been causing major ups and downs in the US market.

As per market researchers, Light-duty truck and import sales decreased in March, while domestic auto sales increased. The pace of sales in March was 14.82 million units, while the pace of sales for the first three months of 2023 was 15.28 million units. ChemAnalyst experts suggest that the price of Halo Butyl Rubber dropped almost by 3% from February to March on the back of lesser inquiries for the product. During the last week of March, the price of Halo Butyl Rubber BIIR plunged by 2.5% in the US market.

The National Automobile Dealers Association has stated that it expects automotive inventories to continue to improve, supporting higher sales. If that happens, the procurement for Halo Butyl Rubber will increase, which will drive up Halo Butyl Rubber prices. Automotive News, a trade newspaper, reported that the year's good start was beginning to lose steam towards the end of the month as consumers felt the effects of rising interest rates and transaction costs. Likewise, the Halo Butyl Rubber market began improving at the start of the year, which showcased weak market sentiments in March. New car availability in retailer inventories is improving, leading to a reduction of dealer margins and greater manufacturer incentive spending. However, profitability is far above historical averages, and the industry still faces supply constraints. The Halo Butyl Rubber market is expected to rebound in the year's second quarter owing to increased automotive sales.