Inflation and Energy Crisis Causing Another Surge in the European EPDM Rubber Market
- 16-Nov-2022 5:05 PM
- Journalist: Rene Swann
Hamburg, Germany: With ongoing inflation and approaching winters, the European EPDM Rubber market is in a difficult situation. Last week, i.e., during the week ending on 11th November 2022, the prices of EPDM Rubber assembled at USD 3730/MT FOB Hamburg, which indicated a rise of 3%, and the trend was almost the same in every other European nation. As per the market assessment of ChemAnalyst researchers, the market is also proceeding in the same direction in the current week. Rising inflation in Europe has been driving up the prices of EPDM Rubber coupled with high energy costs.
After declining for a few weeks, energy prices again started surging in the regional market, which is currently one of the biggest concerns for Europe. Though the energy price hike was anticipated, the market is not yet prepared for the same. Consequently, the manufacturing costs of EPDM Rubber will be affected severely, and the prices will increase several folds. Furthermore, the rising inflation remained the second most concerning factor in the European market, which has been backing the price increment of several commodities.
Additionally, the prices of Ethylene and Propylene were increasing, driving up the upstream costs involved in EPDM Rubber production and eventually resulting in its high market value. Currently, the only sigh of relief for Europe is relaxing supply chain disruptions as port congestions, and vessel bunching has been easing along with average yard utilization. Though the improving supply chain conditions have not impacted the EPDM Rubber market much, higher production costs and rising inflation have dominated the market.
As per ChemAnalyst anticipations, “The EPDM Rubber market would showcase further price hike in the upcoming weeks as energy prices would surge even more as winter peaks. Furthermore, the prices of Ethylene and Propylene are likely to surge as well, which would again support the higher cost of production for EPDM Rubber.”