According to the most recent analysis by ChemAnalyst, pricing dynamics have continued to be hampered by weak demand fundamentals, which has led to a decrease in EPDM Rubber prices in the US market. In recent weeks, as consumer buying sentiment declined and the inflation rate for several commodities continued to grow unabatedly, speculations about a US recession have acquired more support. A couple of the main engines of the US economy have been the construction and automobile sectors, and weak demand from both has tipped the scales in favour of the US economy's lowered growth rates.

As raw material prices have fallen steadily over the past two months and metal prices have declined due to lessening metal pricing uncertainty, the cost of producing EPDM rubber has also decreased recently. The production of EPDM rubber uses a variety of metallocene catalysts, many of which contain metals. As fuel prices in the country have dropped recently, relieving pressure on logistics, supply chains have grown stronger in recent weeks.

Propylene and Ethylene contracts settled with a new price decrease in the feedstock market, significantly impairing the pricing dynamics. The US has struggled with inconsistent logistics, as interior rail hubs are causing a backlog of containers at the key US importing port of Long Beach, LA. As a result, the FOB price for EPDM rubber medium diene has stabilised at USD 4060 per MT as of August 5, 2022.

The US market for EPDM rubber has remained weak due to the slow purchasing sentiment. In addition, the recent drop in prices is a result of a decline in domestic consumption and a decline in global demand.

"EPDM rubber prices in the US market are projected to stay weak in the coming weeks as consumption levels from the automobile sector are likely to continue slow and sluggish on the back of muted demand," reports ChemAnalyst.