The US and Europe Isoprene Rubber MV 60-80 markets are currently experiencing steady market sentiments at the lower end, highlighting a bearish market scenario. This trend can be largely attributed to the reduced production costs of Isoprene Rubber, driven by the stable and lower prices of its upstream, Butadiene. Additionally, as the year drew to a close, market players opted to maintain their low quotations for Isoprene Rubber, further reinforcing the bearish conditions. This collective strategy by market participants helped sustain the downward pressure on market sentiments, keeping the overall market scenario relatively stable but bearish.

In Germany, the Isoprene Rubber MV 60-80 market remained stable at the lower end, reflecting bearish market sentiments during the week ending on 27th December. This bearishness stemmed from suppliers' ongoing destocking activities for Isoprene Rubber aimed at avoiding potential year-end taxes, compelling market players to uphold low quotations, which in turn perpetuated the downward trend. Additionally, limited demand for Isoprene Rubber from the downstream Automotive and Construction sectors, coupled with the prevailing economic challenges in Germany, further contributed to the continuous bearish market trend, maintaining a stable yet subdued market outlook.

In December 2024, the European Central Bank (ECB) made its fourth rate cut of the year, reducing key interest rates by 25 basis points as anticipated. This decision was driven by a more optimistic inflation outlook and enhancements in the transmission of monetary policy. The ECB projects that inflation will gradually decrease, with estimates of 2.4% in 2024, 2.1% in 2025, and 1.9% in 2026. Despite the easier financing conditions resulting from these rate cuts, borrowing costs remain stringent due to the lingering effects of previous rate hikes on existing loans.

Similarly, in the United States, the Isoprene Rubber market is mirroring the bearish sentiments seen in other regions, maintaining stability at a lower end. This trend is primarily driven by ongoing destocking efforts by suppliers, aiming to clear existing inventories before the year-end, which has kept quotations consistently low. Additionally, demand for Isoprene Rubber from key downstream sectors, such as Automotive and Construction, remains limited, further contributing to the continued bearishness in the market.

Moreover, in December 2024, the Federal Reserve (Fed) decided to lower interest rates by 25 basis points during the Federal Open Market Committee (FOMC) meeting. This adjustment reduced the target interest rate range from 4.25% to 4.5%, signaling the Fed's continued dedication to balancing its dual objectives of maximum employment and price stability. The rate cut is part of the Fed’s strategy to support economic growth and ensure financial stability while managing inflationary pressures.

According to ChemAnalyst, the Isoprene Rubber market in the US and Europe is expected to experience an upward trend as the new year begins. Market participants are likely to adjust their ex-quotations for Isoprene Rubber accordingly.