The Chinese market for Epichlorohydrin Rubber continued to showcase a significant downturn in September 2024 due to an influx of cheaper imports from Japan, a major exporter, despite a general recovery in the downstream automotive industry. This downtrend was influenced by intense competition among global market players which limited the scope for substantial price increases of Epichlorohydrin Rubber. While the automotive industry's recovery and the upcoming National Day Holiday provided some potential support, their impact was offset by the prevailing market conditions due to a decline in shipping costs further exacerbated the downward pressure on Epichlorohydrin Rubber market.

September 2024 saw a fall in the Chinese market for Epichlorohydrin Rubber due to cheaper imports. The appreciation of the Chinese yuan against the US dollar made imported goods more competitively priced, further pressuring domestic producers. Moreover, aggressive promotional discounts offered by Japanese producers intensified market competition and drove down prices. This pricing strategy aimed to increase market share and sales by offering consumers more attractive deals to settle the prices at USD 5310/MT, Epichlorohydrin Rubber MV- 70 CFR Qingdao, China during September 2024.

The introduction of additional subsidies to encourage consumers to switch to cleaner, more energy-efficient vehicles undoubtedly boosted demand for the automotive sector. This, in turn, could have been expected to increase demand for Epichlorohydrin Rubber, a critical component in many automotive applications. However, the market was already saturated with an abundance of Epichlorohydrin Rubber stock, limiting the extent to which the automotive industry's improved performance could translate into higher demand for the material. The upcoming National Day Holiday created a positive sentiment among consumers, which could have provided a temporary boost to the market. However, the surplus of Epichlorohydrin Rubber stock ultimately negated any positive impact from increased consumer spending. Moreover, weather-related disruptions, which had previously constrained the supply of Epichlorohydrin Rubber, began to subside in September. This eased supply pressures from the transportation sector and contributed to lower prices. Additionally, the conclusion of the peak shipping season reduced demand for shipping containers, leading to a decline in freight charges and further lowering the cost of imported Epichlorohydrin Rubber.

As per ChemAnalyst, Epichlorohydrin Rubber prices are expected to rebound in October 2024 as the Chinese Government has stimulated the policy to enhance the trading atmosphere. This could surge the demand among the consumers which potentially increases new orders for Epichlorohydrin Rubber in the upcoming month. Moreover, the persistent Red Sea attacks could disrupt the delivery times leading to higher costs of commodity.