EPDM Rubber Prices Surge in Mid-November Amid Prolonged Inventory Buildup

In the global market, EPDM Rubber prices experienced a significant increase in the mid-week of November, primarily driven by persistent prolonged inventories buildup activities among market participants. This surge in the EPDM Rubber price reflects heightened speculative interest and strategic stockpiling as buyers position themselves ahead of anticipated market shifts. Additionally, limited availability due to supply constraints, have further supported the upward momentum of the EPDM Rubber.

In mid-November, EPDM Rubber ENB (4.1-5.5) prices in the European market climbed to 3,070 USD/MT FOB-Hamburg. Despite a 5.5% drop in Ethylene prices and a 0.5% decline in Propylene, attributed to ongoing short buildup activities, EPDM Rubber prices continued their upward trend. Lanxess reported a 12.9% increase in sales for its Advanced Intermediates segment, from EUR 403 million in Q3 2023 to EUR 455 million in Q3 2024. EBITDA before exceptionals surged by 126.7% to EUR 68 million, supported by higher capacity utilization and cost-saving initiatives, raising the EBITDA margin from 7.4% to 14.9%. While German industry sentiment remained subdued in October, slight improvements in PMI suggest a potential economic recovery. Despite lower feedstock prices and uneven manufacturing activities, EPDM Rubber prices are rising due to prolonged buildup activities and an ongoing supply-demand imbalance, underscoring its essential role in industrial applications. EPDM Rubber remains a focal point in the current market dynamics.

As of mid-November, EPDM Rubber prices in Japan reached 2,390 USD/MT FOB-Tokyo. While Ethylene prices in the feedstock market remained steady, they experienced a 1.3% decline in November, and Propylene saw a 1.2% drop from previous higher levels. On the industrial front, Mitsui Chemicals reported increased sales volumes, driven by strong demand from the automotive sector. Exchange rate fluctuations improved trade conditions, although a temporary shift in supply-demand dynamics slightly impacted trade performance. Despite this, the market remains tight, with production cost imbalances and supply management issues pushing prices higher, leading to consecutive price increases and established support levels.

According to ChemAnalyst projections, EPDM Rubber prices are expected to display a bullish trend in the upcoming sessions. This EPDM Rubber price forecast aligns with the anticipated recovery in economic activities from major economies like China and the USA, which is expected to lead to increased production volumes from manufacturers. Additionally, the ongoing prolonged buildup activities by market participants are likely to support this EPDM Rubber price increase, reflecting stronger demand and a more favorable market outlook.