Global EPDM Rubber Market Stabilizes in H2 July Amid Balanced Demand and Supply

In the global market the price of the EPDM Rubber witnessed a stability as of last week of July. This stability in the EPDM Rubber price is primarily linked to the balanced demand and the supply ratio in the market. The European downstream market continued to underperform nevertheless the Automobile sector continued to support the EPDM Rubber consumption. Based on the long-term trend the market has sufficient inventories availabilities with no major accumulation from the market participants in the current trend of destocking. These factors have simultaneously played a key role in influencing the EPDM Rubber market in the global market.

The US market for EPDM Rubber (ENB 4.1-5.5) has maintained a stable price of 2665 USD/MT FOB-Texas, despite notable changes in the feedstock market. In July, Ethylene prices increased by 10.9% and Propylene by 5.2%, driven by substantial build-up activities from market participants. These increases, however, have not disrupted the EPDM Rubber price trend, indicating strong market resilience. Adding to the market's dynamism, Dow has announced the launch of bio-based NORDEL™ REN EPDM at DKT 2024, a move aimed at helping the automotive, infrastructure, and consumer industries reduce their Scope 3 emissions, highlighting the industry's push towards sustainability. Economic activity in the US exceeded expectations in the second quarter, supported by robust consumer spending, increased government expenditures, and significant inventory build-ups, as reported by the Commerce Department.

 In this context, the Federal Reserve is expected to hold interest rates steady in their upcoming meeting, although market trends suggest a potential rate cut in September—the first in four years. This economic backdrop has encouraged market participants to maintain adequate inventory levels, aligning with current demand and contributing to the stability of EPDM Rubber prices. Over the past few months, this approach has prevented significant fluctuations in EPDM Rubber pricing, underscoring the market's adaptability and strategic management amidst changing economic conditions.

In the European market, the price of EPDM Rubber (4.1-5.5) has stabilized at 3030 USD/MT FOB-Hamburg. This stability persists despite significant changes in the feedstock market, where Ethylene prices increased by 10.26% and Propylene prices rose by 5.7% following a period of significant decline. These feedstock price hikes have been offset by the availability of sufficient EPDM Rubber inventories in the market. Suppliers have adopted a cautious approach to inventory accumulation due to the underperformance in economic activities, which has further contributed to the stable pricing. Despite the feedstock fluctuations, the adequate inventory levels have helped maintain the price of EPDM Rubber without major changes over the past few sessions.

According to ChemAnalyst's anticipation, the price of EPDM Rubber is expected to exhibit a stable to marginally bullish trend in the upcoming sessions. This outlook aligns with the global positivity in the automobile sector, which has significantly supported the EPDM Rubber market. The consolidated flat price action amidst the previous downward trend suggests a potential for slight momentum in EPDM Rubber pricing, either upwards or downwards. These dynamics are anticipated to influence the pricing of EPDM Rubber, reflecting the interplay between sector-specific demand and overall market conditions. As the automobile sector continues to thrive, it is likely to provide a stable foundation for EPDM Rubber prices, with minor fluctuations expected in response to market activities and inventory management strategies.