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Japan鈥檚 Neoprene Rubber Prices Edge Up as Butadiene and Export Demand Hold Firm

Japan鈥檚 Neoprene Rubber Prices Edge Up as Butadiene and Export Demand Hold Firm

Nina Jiang 12-Sep-2025

Neoprene Rubber prices in Japan experienced a continuous rise throughout August 2025 with a 6.6% increase in butadiene feedstock costs and resilient demand from the construction/infrastructure and export market segments. While domestic automotive softness dampened sentiment, strong overseas orders - namely from China and India - along with steady activity in the industrial markets, helped facilitate the upward pricing momentum. There were supply chain backlogs and the inventory strategies remained cautious which augmented the firmness of the producers' offers.

Key Highlights

  • Butadiene feedstock prices rose x.xx, pressuring production margins.
  • Construction demand remained strong, led by logistics and data center infrastructure.
  • Export demand surged, supported by China鈥檚 xx.xxx YoY vehicle sales growth and India鈥檚 festive-led retail expansion.
  • Domestic automotive sales fell xx.xxx MoM, softening local demand.

Feedstock Trend

Price Trend

Demand Side Overview

In August, the consumption of Neoprene Rubber in Japan was linked to demand from industries in overseas markets and some domestic industries. Demand for Neoprene Rubber from the automotive sector is tricky, as we notice the number of cars sold in Japan is down considerably, while sales in the overseas market are getting strong, particularly in China, which saw vehicle sales increase xx.xxx year-on-year, and India, which is showing x.xxx retail growth in all vehicles sales led primarily by tractors...

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