US EPDM Rubber Prices Surge Mid-September Amid Rising Ethylene Costs and Strong Downstream Demand

In the US market the price of the EPDM Rubber witnessed a notable surge as of mid-week of Sept. This surge in the EPDM Rubber price is majorly attributed to the surge in the price of the feedstock majorly Ethylene which is making newer high and the Propylene falling marginally from the upper levels. However, the positive downstream market demand from the Automobile and the Construction sector contributed majorly to the increase in the price of the EPDM Rubber in the market.

In the US market, EPDM Rubber prices surge this week. This rise in the EPDM Rubber price is majorly attributed to the increase in the feedstock price in the regional market. The price of the Ethylene witnessed a 18.2% increase while Propylene marked a 10% decrease which majorly contributed towards influencing the pricing dynamics of the EPDM Rubber. In the downstream automobile sector in the US witnessed robust sales with 1,421,551 units sold in August, reflecting an 11.3% increase from July and a 6.0% rise compared to the previous year. Data from the U.S. Census Bureau reveals that construction spending in July 2024 decreased slightly by 0.3% to $2,162.7 billion but the outlook still remains positive. Additionally, the Manufacturing PMI witnessed notable increase in numbers but still below threshold limit. Suppliers with respect to the current market demand and the surging feedstock price have increased their exquotation price which played a key role in influencing the EPDM Rubber pricing dynamics in the US market.

The supply of EPDM Rubber in the US market remains moderate, as domestic manufacturers face tight raw material availability due to rising input costs, particularly for Ethylene. On the economic front, the Federal Reserve reduced the fed funds rate by 50bps to 4.75%-5% in September 2024, providing some relief. However, US Census Bureau data indicates that EPDM Rubber exports in July totalled 16,936.439 MT, a 4.7% decrease from the previous month, reflecting some softening in external demand.

According to ChemAnalyst's anticipation, EPDM Rubber prices are expected to rise notably in the coming sessions. This projection in the EPDM Rubber price is closely tied to the anticipated increase in demand from both domestic markets and international markets, particularly in Europe. Additionally, the continuous rise in feedstock prices, especially Ethylene, is expected to drive production costs higher. These factors are poised to exert upward pressure on EPDM Rubber pricing in the US market, as manufacturers adjust to meet growing demand while managing rising input costs. The combination of these dynamics signals a likely price surge of the EPDM Rubber in the near future.