EPDM Rubber Prices Continue to Plunge in Europe Amid Weak Demand Fundamentals
- 16-Feb-2022 3:38 PM
- Journalist: Peter Schmidt
European markets have been observing consistent downtrend in Ethylene Propylene Diene Monomer (EPDM) rubber market dynamics owing to stagnant demand pattern from downstream industries. EPDM rubber market have deteriorated since the beginning of the quarter in lieu of strengthening supply fundamentals and rising inventory levels.
EPDM rubber prices assessed on 2nd week of February and were placed at USD 3750 per MT on FOB basis. Prices have declined by more than 9.3% since the conclusion of Q4 2021.
Stagnancy in automotive industry continue to plague several upstream industries including tire industry. Global chip shortage has been persistent in the last few quarters and that has culminated in stagnant production levels worldwide. Consequently, demand of Original Equipment (OE) tires has also been severely and this in turn has resulted in stabilization in tire production levels. Tire industry has been heavily reliant on replacement tire consumption and due to off season in terms of tire consumption, there has been early signs of stabilization in tire industry.
Tire industry has also been conservative in its procurement of elastomers and thus EPDM rubber along with several other rubbers have observed weak buying sentiment. This has provided ample opportunity for sustained increase in inventory levels in European market.
As per ChemAnalyst, “EPDM rubber market is likely to remain sluggish in coming weeks owing to weak buying sentiment in the market and optimum production levels. Tire industry may observe demand improvement in Q2 as summer driving season is expected to spur consumption growth for replacement tire across European region.”