High Automotive Sales Driving Up the EPDM Rubber Prices in the USA

Texas, USA: During the week ending on February 3, the FOB price of EPDM rubber in the USA market increased by 6.7%. The export or FOB-based price of EPDM Rubber grew due to increased demand from the downstream construction and automotive sectors in the global market. According to experts, the impending mild recession is the main driver of this price hike in the EPDM Rubber market. Many market analysts predict that a modest recession will soon hit the U.S. economy once inflation reaches its peak. A soft landing is envisaged for the market because inflation has already reached a high point and is currently moving towards a moderate scenario.

Researchers contend that there is a connection between increased U.S. auto sales and the projected start of a moderate recession, which is eventually driving up the price of EPDM Rubber in the global market. The country already had a persistent need for automobiles which was not being fulfilled because of the economic downturn and rising interest rates. Additionally, China has finally opened its market, allaying worries about the supply chain, by removing several restrictions associated with its zero covid policy.

Since China is among the world's top producers of semiconductors, U.S. automakers may now exhale with relief knowing the Chinese market is once again open. Nearly all the supply chain problems the automotive industry faces with semiconductors and other parts have been fixed, which will enhance the production of automobiles and increase demand for EPDM Rubber. When the USA market for the downstream automotive sector started to show signs of recovery, the demand for EPDM Rubber increased, ultimately boosting the material's market value.

As per ChemAnalyst anticipation, "The EPDM Rubber prices would further increase in the upcoming weeks as the USA market is likely to experience growth in their automotive and construction industries, which would eventually drive up the offtake of EPDM Rubber in the market."