European EPDM Rubber Price Witness Bearish Trend Amid Decreasing Demand and Lower Bids
European EPDM Rubber Price Witness Bearish Trend Amid Decreasing Demand and Lower Bids

European EPDM Rubber Price Witness Bearish Trend Amid Decreasing Demand and Lower Bids

  • 04-Jan-2024 4:46 PM
  • Journalist: Jai Sen

Hamburg (Germany): At the end of the 4th Quarter of 2023, the European region, particularly the German market, experienced a decline in the price of Ethylene Propylene Diene Monomer (EPDM) Rubber. This downward trend was primarily influenced by reduced bidding activities from suppliers looking to accumulate inventories. The challenging scenario observed in the downstream Automobile and Construction sectors during this period led to an immediate stocking up of inventories.

In the European market, during December 2023, the price of EPDM Rubber declined by 4.08%. The German Cars Market, reflecting the broader industry, reported a 5.8% decline in November 2023. Simultaneously, the construction sector is facing a downturn, exemplified by Michelin's decision to close two factories and cut over 1,500 jobs in Germany due to rising costs and competition from more affordable imports. The industrial sector in Europe's leading economy is grappling with challenges such as high energy costs and surging inflation, collectively contributing to a downturn in demand from downstream markets, impacting industries reliant on industrial inputs like EPDM Rubber.

The Italian automobile market is reported to be performing well, contributing to good demand for EPDM Rubber. Despite the positive demand scenario, there is a downward trend in EPDM Rubber prices, creating a wait-and-watch situation for suppliers. This situation raises concerns about excessive accumulation of inventories, impacting the price of EPDM Rubber. In the Netherlands and France, the downstream Construction and Real Estate markets also experienced a downturn. Despite efforts such as interest rate decreases by European Union countries to boost consumption and manage various sectors, including Automobile and Construction, there has been no significant positive impact on the demand for EPDM Rubber throughout the whole month. Expectations exist for a further decrease in interest rates as part of efforts to stabilize the economy.

According to ChemAnalyst's projections, the price of EPDM Rubber is expected to experience a stable to bearish trend in the upcoming sessions. This anticipation is grounded in the current demands observed in the downstream Automotive and Construction market, which is presently facing challenging conditions. The entire EPDM Rubber market is influenced by government interest rate sentiments, determining whether they positively impact the demand in downstream Automotive, construction, and other industrial sectors. Additionally, continuous destocking by traders and the absence of bids for EPDM Rubber have contributed to a significant downward trend in pricing. Traders are likely to await an upswing to engage in Long Buildup activities and initiate fresh bids for inventories.

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