For the Quarter Ending March 2024
North America
In the USA, the HNBR market witnessed an upward price trend amidst sectoral shifts. The automotive sector displayed resilience, evidenced by the sale of 3,797,420 units, signaling 2.83% decline from previous quarter but increasing month on month growth. Conversely, the aerospace sector faced challenges, notably with Boeing's decision to limit 737 productions due to heightened regulatory scrutiny and safety concerns.
The decline in Boeing's 737 MAX jetliner production adversely affected the aerospace industry, exacerbated by the Federal Aviation Administration's production cap and ongoing safety issues. Despite these challenges, the HNBR market in the USA experienced a price uptick, reaching 35,810 USD/MT FOB-Texas, marking a significant 6.45% increment in Q1 2024 from Q4 2023.
This price incline is attributed to various factors, including steady demand from the automotive sector and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market. Additionally, support from overseas markets like Mexico, Brazil, and Canada further bolstered the price trend of HNBR in the respective quarter, highlighting the market's resilience amidst sectoral challenges.
APAC
The HNBR market in the APAC region witnessed an inclining phase in the current quarter of 2024 (Q1) from January to March. The overall market situation was positive, with adequate supply in the downstream market. However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period.
Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions. Totally 6717000 Units of Automobile sold in this quarter in the Chinese market which is comparatively lower as compared to the previous quarter. However the aerospace market is also underperforming in the Chinese market.
However in the Indian market, the activeness in the Indian government witnessed in the Aerospace sector. Hindustan Aeronautics Ltd the Indian Aerospace company as of March 31, 2024, has an order book exceeds Rs 94,000 crores, with additional major orders expected during FY 2024-25. Japan on the other hand replicated the overall asian market scenario being the major exporter of the HNBR in the Asian market. As of this quarter ending the price of the HNBR halted at 23050 USD/MT FOB-Osaka marking an increment of 1.14% in this quarter.
Europe
In the European market the price of the HNBR witnessed a challenging scenario in Q1 2024. This situation is majorly attributed to the decline in the overall manufacturing performance in the European economy particularly Germany. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors which has not impacted majorly in the price trend in this quarter.
However, amidst these factors, the downstream automobile market demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region.
Nevertheless in the Aerospace sector market total 142 deliveries to 45 customers given from the major Aircraft maker Airbus in this quarter. The safety issue in the USA Aircraft maker Boeing’s aircraft has significantly impacted positively on the European aircraft maker Airbus market which has thereby influenced the demand for the various commodities including HNBR in the European market.
