Epichlorohydrin Rubber Prices in Japan are expected to decline in December 2024 followed by unchanged market dynamics with a bearish trading atmosphere. The Epichlorohydrin Rubber prices are set to further decline at the end of the fourth quarter due to the destocking effect.

As December approaches, the Epichlorohydrin Rubber market is characterized by an oversupply of materials. Both domestic suppliers and importers are actively seeking to offload their inventory due to a slowdown in downstream automotive demand. The expected downward trend is heavily influenced by the typical seasonal slowdown as market players strive to minimize their stock levels before the year-end. This destocking behavior is a common practice towards the close of the year, as businesses aim to streamline operations and improve cash flow. The current market conditions of Epichlorohydrin Rubber, characterized by ample supply and weakening demand from the downstream automotive sector, are likely to exert downward pressure on Epichlorohydrin Rubber prices. Producers may need to adjust their production strategies to maintain profitability in the face of lower prices. This could involve optimizing production processes, exploring cost-cutting measures, and diversifying into new markets or applications.

Meanwhile, despite a marginal decline in market activity, Epichlorohydrin Rubber prices remained largely stable in November 2024 amid a lack of new orders due to sufficient inventory levels and intense competition within the market. Demand for Epichlorohydrin Rubber witnessed a decline, primarily driven by sluggish performance in the downstream automotive and tire sectors which put downward pressure on Epichlorohydrin Rubber prices. As per the data, in November 2024, new vehicle sales in Japan declined by over 5% to 389,529 units compared to the previous year. Year-to-date sales also decreased by 7.3% to 4,091,708 units. This downturn has negatively impacted the tire sector, leading to lower operating rates due to increased inventory pressure and reduced production and purchasing capabilities. However, this downward pressure was offset by the presence of ample inventory backups among manufacturers mitigated the impact of reduced demand. Moreover, supply chain disruptions originating from Japan played a significant role in maintaining price stability. Japan, a key exporter of Epichlorohydrin Rubber, has been particularly hard-hit by the storms leading to delays in the supply of Epichlorohydrin Rubber to both domestic and international markets. The powerful storm, coupled with a magnitude 6.1 earthquake in the Noto Peninsula, has led to infrastructure damage, transportation delays, and power outages. Henceforth, to remain competitive in the face of these challenges, manufacturers maintained their offered quotations, rather than lowering prices to attract new orders.