EPDM Rubber Market Witnesses Global Plunge in Early December
- 10-Dec-2024 4:15 PM
- Journalist: Emilia Jackson
As of early December, EPDM Rubber prices in the global market have experienced a decline. This downward trend in the EPDM Rubber price is primarily attributed to excess inventories among suppliers, leading to increased competitive pricing. Suppliers have adjusted stock levels more aggressively, reflecting an oversupply situation.
As of early December, EPDM Rubber ENB (4-6) prices in Germany have dropped to 2,850 USD/MT CFR-Hamburg, driven by reduced import costs from key Asian suppliers. The decline in the EPDM Rubber price coincides with falling domestic feedstock prices, notably Ethylene and Propylene. Germany's manufacturing sector continues to face challenges, including ongoing job cuts and a sustained drop in foreign orders since mid-2023. Although the new government's proposed economic reforms offer a glimmer of hope, confidence remains low. The Ifo Business Climate Index fell to 85.7 in November 2024, down from 86.5 in October, amid political uncertainties and concerns over potential U.S. trade tariffs. Stable currency and controlled supplier inventories have maintained market equilibrium, contributing to the marginal EPDM Rubber price decline.
In November 2024, German new passenger car registrations totalled 244,544 units, reflecting a 5.4% month-on-month increase but a slight 0.5% year-on-year decline, indicating a mixed performance in the automotive sector. This aligns with seasonal trends but reveals persisting challenges. The construction sector faced declining activity across residential, commercial, and civil engineering segments, alongside rising material costs and reduced new orders. With these pressures, EPDM Rubber prices in the European market remained down due to balanced inventories and muted demand growth from underperforming downstream markets.
As of early December, EPDM Rubber prices in Japan have declined to 2,360 USD/MT FOB-Tokyo, primarily driven by opposing trends in feedstock prices. While Ethylene has risen, the continued decrease in Propylene has weighed down the overall price, contributing to a downward pressure on EPDM prices. Domestic manufacturing activity remains underperforming, and demand from overseas markets has stagnated. The depreciation of the Japanese yen by 0.15% had a minor influence on the price drop. With muted demand-supply dynamics and a lack of significant market momentum, the overall EPDM Rubber price trend has seen a decline.
The supply of EPDM Rubber in the Japanese market remains adequate, although there have been reports of delivery delays, contributing to a slight increase in suppliers' delivery times. However, the rate of deterioration in delivery times was marginal during the current three-month period. According to Japan's Trade Statistics, EPDM rubber exports to India decreased by 3.4% in October, totaling 922.340 MT, while exports to China saw a more notable decline of 7.0%, reaching 1,131.364 MT.
According to ChemAnalyst, the price of EPDM Rubber is expected to see stable to bullish momentum in the coming months. This anticipated increase in the EPDM Rubber price is driven by the expected improvement in global demand, particularly from key industries, alongside rising freight charges.