European EPDM Rubber Price Witnessed Stability Amid Balanced Downstream Market and Supplier’s Actions
European EPDM Rubber Price Witnessed Stability Amid Balanced Downstream Market and Supplier’s Actions

European EPDM Rubber Price Witnessed Stability Amid Balanced Downstream Market and Supplier’s Actions

  • 05-Jun-2024 1:56 PM
  • Journalist: Jacob Kutchner

In the European market, the price of EPDM Rubber remained stable in the latter half of May. This stability in the EPDM Rubber price is mainly attributed to the consistent demand and supply ratio among market participants, along with effective inventory management during this period. In contrast, the prices of major feedstocks like ethylene and propylene experienced a downward trend after a sustained increase over the past few months. Suppliers are marginally increasing inventory accumulation, contributing to a trend of higher highs and higher lows in prices. Consequently, these factors have led to fluctuations in the price of EPDM Rubber during this period.

In terms of downstream activity, the German construction industry reached a wage agreement after experiencing renewed strikes, while the manufacturing sector saw a contraction, albeit at a slower rate. Recent price actions suggest that suppliers are adjusting their ex-quotation prices as they manage their inventories in response to market conditions. Manufacturing activities, which serve as an indicator of overall business conditions, have shown improvement for the second consecutive month in May. With supply and demand dynamics showing no significant shifts, suppliers have maintained their ex-quotation prices, resulting in price stability for the week. As of this week, the price of EPDM Rubber concluded at (ENB 4.1-5.5) 2970 USD/MT FOB-Hamburg.

In the Netherlands market, prices for EPDM Rubber remained notably steady throughout this week. The market exhibited accelerated expansions, marking the most significant improvements in factory operating conditions since 2022. Across the eurozone, there was near stabilization of production in May. While factory output experienced a decline, it was the mildest contraction observed in over a year and remained marginal overall. Despite this, manufacturers exercised caution in May, with purchasing activity remaining unchanged from the previous month and maintaining a cautious approach towards stock levels. This week, the price of EPDM Rubber (ENB 7-11) concluded at 3350 USD/MT FOB-Rotterdam.

According to ChemAnalyst, the price of EPDM Rubber is expected to demonstrate stable to bullish momentum in the upcoming sessions. This anticipation of price stability of EPDM Rubber is mainly attributed to the slight increase in supplier's activity in inventory management. Additionally, there has been a slowdown in contraction in major economies such as France and Germany, while the Netherlands has witnessed improvement in its manufacturing sector. The consumption of EPDM Rubber from the downstream industries mainly Automobile and construction will also provide support to the price trend. These factors are expected to play a significant role in influencing the price of EPDM Rubber in the near future.

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