For the Quarter Ending December 2024
North America
The fourth quarter of 2024 for Epichlorohydrin Rubber (ECO Rubber) in the North American region witnessed a mixed performance. October saw a significant price rebound in the USA, driven by a surge in new orders, fueled by a resurgent automotive sector and improved consumer sentiment amidst the Presidential Election uncertainty. Moreover, an increase in the feedstock Epichlorohydrin prices further surged the manufacturing costs during this timeframe.
However, this upward trend was short-lived. November experienced a marginal price decline due to a sufficient inventory backup. Finally, December saw a further slight price adjustment downwards as declining sales for ECO Rubber due to the destocking season prompted manufacturers to adjust their pricing accordingly. Moreover, the decline in feedstock epichlorohydrin prices further eased the manufacturing costs in December 2024.
Overall, the fourth quarter for ECO Rubber in the APAC region was characterized by an initial surge in prices followed by a period of relative stability and a subsequent marginal decline towards the end of the year.
APAC
In the fourth quarter of 2024, the Epichlorohydrin Rubber market in the APAC region experienced a pronounced uptrend, while the latter half of the fourth quarter witnessed a marginal decline. In October 2024, ECO rubber prices in Japan rebounded by 2.1% to USD 5310/MT Epichlorohydrin Rubber MV- 70 FOB Tokyo. This increase was driven by a surge in new orders from key importing nations like India and China, fueled by a resurgence in the automotive sector. Following the National Day holiday and the Diwali season, improved consumer sentiment boosted market demand, prompting Japanese manufacturers to significantly increase their quotations to maintain profitability. While the end of the peak shipping season led to lower freight charges, the overall impact on prices was limited by a substantial increase in import demand during the month. However, the marginal drop in November was attributed to no new orders for ECO Rubber amid sufficient inventory backups. Moreover, a decline in sales from the downstream automotive sector led manufacturers to marginally adjust the prices at a lower end during December 2024.
Europe
The European Epichlorohydrin Rubber (ECO Rubber) market experienced a volatile fourth quarter in 2024. October witnessed a surge in prices, primarily driven by a resurgence in the automotive sector, spurred by improved consumer sentiment. However, this upward trajectory proved short-lived. November saw a slight price correction due to the presence of ample inventory backups, which dampened demand. This trend continued into December, with prices experiencing a further marginal decline. This downward pressure was attributed to a combination of factors, including declining sales of ECO Rubber from the automotive sector during the traditional destocking season and a decrease in feedstock Epichlorohydrin prices, which alleviated manufacturing costs. Spot activity remained subdued as consumers prioritized contractual commitments, further contributing to the bearish situation during December 2024. In summary, the fourth quarter of 2024 for Germany ECO Rubber market showcased a dynamic price landscape. An initial surge driven by strong demand from the downstream automotive sector was followed by a period of price correction due to inventory buildup and declining feedstock prices.
For the Quarter Ending September 2024
North America
In North America, the third quarter of 2024 has seen a mixed trend in the Epichlorohydrin Rubber market. In July 2024, the price trend for Epichlorohydrin Rubber increased due to factors such as increased production costs and supply chain disruptions. The market was characterized by supply chain issues and increasing freight costs as a result of geopolitical concerns, which caused price trends to rise.
However, the improved performance of the automobile industry did not convert into greater demand for ECH Rubber in August, as adequate inventory levels of ECH Rubber resulted in lower consumption during this timeframe.
While the price trend has reversed during September where demand from the downstream automotive sector has declined significantly. The automotive sector faced another contraction in September, potentially due to seasonal factors, rising interest rates, or geopolitical tensions. A cautious buying climate was exacerbated by low investor sentiment in September 2024 discouraging investments in the US market. Despite these disruptions, the ECH Rubber market saw a significant drop in September 2024 as a result of severe competition.
APAC
In the third quarter of 2024, the Epichlorohydrin Rubber market in the APAC region experienced a pronounced downturn, followed by an uptrend. During July 2024, despite a decline in feedstock Epichlorohydrin (ECH) prices which typically translates into reduced production costs by exerting downward pressure, the prevailing market dynamics of Epichlorohydrin Rubber in July exhibited an opposing trend. The onset of the rainy season and subsequent floods in northern Japan wreaked havoc on the supply chain, creating a bullish market sentiment for the Epichlorohydrin Rubber. However, the improved performance of the automotive industry did not translate into increased demand for ECH Rubber during August, as the availability of ample inventory levels of ECH Rubber led to reduced consumption during this timeframe. Due to intense competition in the market, the ECH Rubber market experienced a large decline notwithstanding these disturbances during September 2024. Moreover, the market competitiveness has increased due to the promotional discounts provided by Japanese producers, which has pushed down the price of ECH Rubber in China during the third quarter.
Europe
In Europe, the Epichlorohydrin Rubber market showed a mixed trend in the third quarter of 2024. Epichlorohydrin Rubber prices rose in July 2024 because of higher manufacturing costs of feedstock Epichlorohydrin and supply chain interruptions. As a result of geopolitical concerns, the market experienced supply chain challenges and increased freight costs, causing price trends to rise.
While the pricing trend reversed in August, demand from the downstream automotive sector decreased sharply. During the traditional summer lull, market activity has decreased as industry players use the holidays to refuel. Market activity has decreased during the customary summer lull as industry participants use the time off to refuel. Some companies were even scheduling meetings for August. The car industry had another drop in September, maybe due to seasonal causes, rising interest rates, or geopolitical concerns. A cautious buying mood was aggravated by low investor sentiment in September 2024, which discouraged investment in the European market. Despite these disruptions, the ECH Rubber market experienced a large decline in September 2024 due to intense competition.
For the Quarter Ending June 2024
North America
In North America, the second quarter of 2024 has seen an overall positive sentiment in the Epichlorohydrin Rubber market, driven primarily by logistical challenges. However, in April 2024, the price trend for Epichlorohydrin Rubber declined due to low demand from the Automotive sector. As per the data, a total of 1327976 new vehicles sold for April decreased by 8.4% compared to March 2024 which showcased a decrease in new orders for the first time in 2024.
Despite the low demand from the downstream automobile and aerospace sectors, the price trend of Epichlorohydrin Rubber remained at a higher end due to extended delivery times from Asia to the USA during May 2024. Moreover, an incline in upstream raw material costs, such as Epichlorohydrin, has bolstered the production costs further.
The supply chain disruptions, including prolonged shipment delays and port congestion, have significantly impacted the availability of Epichlorohydrin Rubber, pushing prices upward. The early arrival of the ocean peak season and diversions in the Red Sea have exacerbated these logistical issues, leading to inflated transportation costs and a subsequent rise in Epichlorohydrin Rubber prices.
APAC
In the second quarter of 2024, the Epichlorohydrin Rubber market in the APAC region experienced a pronounced downturn. In April 2024, Key factors influencing this decline include subdued downstream demand, particularly from the downstream automotive sector, and an oversupply of Epichlorohydrin Rubber due to continued high production rates despite weak market absorption. In the downstream automobile sector, Japanese new vehicle sales in April declined by 11.2% year-on-year and by 31.25% month-on-month, totaling 310,345 units, according to the Japan Automotive Dealers Association. Moreover, a decline in upstream raw material costs, such as Epichlorohydrin, has weakened the production costs further during May 2024. The stagnant economic performance in the region and cautious procurement strategies have further exacerbated the price drop. Japan has seen the most significant price reductions. However, despite the weak downstream automotive sector, the Epichlorohydrin Rubber prices have inclined in June 2024 due to logistical challenges and the rainy season. The quarter concluded with Epichlorohydrin Rubber MV-70 prices at USD 5488/MT FOB Tokyo, Japan during June 2024.
Europe
Epichlorohydrin Rubber pricing in the Europe region for Q2 2024 witnessed a marked decline, driven by several influential factors impacting market dynamics. The quarter was characterized by subdued demand from the downstream automotive industry, compounded by lingering economic uncertainties and high interest rates. This demand reduction was further exacerbated by increased freight rates due to logistical challenges and port congestion, particularly from Asian suppliers. Furthermore, a decrease in upstream raw material costs, such as Epichlorohydrin, has reduced production costs further in May 2024. The Eurozone's broader economic slowdown also played a significant role, with high inflation rates eroding consumer purchasing power and diminishing new sales orders. Additionally, the ongoing geopolitical tensions in Ukraine added a layer of uncertainty, deterring investments in new projects and further dampening Epichlorohydrin Rubber demand. However, the logistical issues have slightly raised the prices of Epichlorohydrin Rubber during June 2024, while the overall trend remained muted due to subdued inquiries from the downstream sector. Focusing on Germany, where the price changes were most pronounced, the overall trends indicated a persistent downward trajectory.
