European EPDM Rubber Prices hold Steady in April 2024
European EPDM Rubber Prices hold Steady in April 2024

European EPDM Rubber Prices hold Steady in April 2024

  • 22-Apr-2024 12:50 PM
  • Journalist: Peter Schmidt

Hamburg (Germany): In the European market, the price of EPDM Rubber remained stable by the third week of April compared to the 1st week. This steadiness in EPDM Rubber pricing is mainly due to reduced involvement from market participants. Additionally, the recent uptrend in Ethylene and Propylene prices in the feedstock market has counteracted any potential upward movement in EPDM Rubber prices. Suppliers' ongoing destocking efforts have also contributed to the lack of price increase in EPDM Rubber during this period.

In the German market, EPDM Rubber prices stabilized at 2950 USD/MT FOB-Hamburg (ENB 4.1-5.5). In the downstream market, the automotive sector in Germany witnessed a rise in sales from the previous month but a year-on-year decline. Additionally, the German construction sector experienced a further sharp decrease in activity in March, with the rate of contraction even accelerating slightly. Building companies remained pessimistic about the year-ahead outlook due to headwinds such as high interest rates and economic uncertainty.

Furthermore, the Eurozone Manufacturing PMI dropped below the threshold in March, signalling a decline in manufacturing output for a year. Nevertheless, the pace of contraction slowed to its weakest since April 2023. Although new orders also decreased, the rate of reduction eased for the fifth consecutive month. Despite this, export sales from the Eurozone weakened, contributing to the overall decline in manufacturing demand, although the extent of the decrease was the smallest in almost two years.

The drop in the supply chain was anticipated to be influenced by changes in the suppliers' delivery times and stocks of purchases. This was expected to occur as disruptions caused by ships being rerouted away from the Suez Canal were easing, leading to significant enhancements in vendor performance. It was expected that supplier delivery times would shorten to the largest extent since last September, despite persisting challenges with ships in the Red Sea. These factors have cumulatively played a key role in impacting the price of EPDM Rubber in the European market.

According to ChemAnalyst's projections, the price of EPDM Rubber is anticipated to remain stable in the upcoming weeks. This expectation stems from observed improvements in the automobile market coupled with sluggish demand in the construction sector. Suppliers are actively destocking EPDM Rubber inventories, which could potentially lead to a retracement in the price trend, contributing to stability. The ongoing downward price trend in the EPDM Rubber market is attributed to continued destocking, as market participants refrain from bulk accumulation of inventories. These factors collectively are expected to influence the price of EPDM Rubber in the European market, maintaining its stability.

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