Ethylene Propylene Diene Monomer Rubber prices to skyrocket in Europe
- 08-Apr-2022 8:49 AM
- Journalist: Timothy Greene
European countries have been facing significant inflation in several commodities, and elastomers have been no different. In the latest insights gained by ChemAnalyst, it has been expected that Ethylene Propylene Diene Monomer rubber prices are likely to gain significantly from the first week of April in several key countries of Europe.
In the latest breakthrough, Kumho Polychem, South Korean MNC, has announced that the company will be increasing the prices of all EPDM rubber by Euro 300 per MT (approx. USD 328 per MT) in the European market. Kumho Polychem has quoted that the price increase has been come in the backdrop of rising cost pressure from energy feedstocks and increasing transportation and other charges. The company also stated that the price increase would enhance the stable supply of long-lasting quality products to European customers.
EPDM rubber prices have already been termed as firm in the European region, and the latest announcement will further exacerbate the pricing dynamics of EPDM rubber in the European markets. In Germany, EPDM rubber prices have been assessed at Euro 3310 per MT (USD 3605 per MT), and the announcement by Kumho Polychem, a key exporter of EPDM to Germany, may encourage domestic producers to increase the prices of domestically produced material in order to incorporate rising energy and feedstock prices. On the demand side, consumption from the downstream automotive industry has been weak to stable as automotive output remains sluggish in the wake recent shortage of wire harnesses in the European market. In contrast, the construction industry is expected to increase volume intakes in the coming weeks as Q2 and Q3, traditionally, have been peak consumption seasons. Meanwhile, inflationary pressure on domestic production has been firm, and producers have been looking for production cuts.
As per ChemAnalyst, “the EPDM market is expected to remain bullish in the coming weeks as domestically produced and imported material is likely to get costly, burdening the downstream buyers. Meanwhile, demand from the construction industry is expected to increase, which will increase consumption offtakes, whereas production output of the automotive industry is expected to remain sluggish, which will deter the demand dynamics in the European market.