Low Automotives Sales Pushing Down EPDM Rubber Prices in Europe
- 20-Jun-2022 4:58 PM
- Journalist: Peter Schmidt
As per the latest assessment by ChemAnalyst, under the influence of low automotive demand in Europe, EPDM rubber prices have declined across the regional market. The data shows that prices have tumbled by a significantly in major European economies like Germany, Netherland, and France during June 2022.
ChemAnalyst data shows the EPDM price in Germany has depreciated by 2.6% during the first half June. This decline is bolstered by prolonged demand dullness from the regional downstream automotive industry and disturbed trade activities due to the ongoing Russia-Ukraine war. As per the market insights, automotive sales have shown a significant plunge during the past few months, which has concerned regional market players.
On the other side, as per the data, EPDM price has also dropped in the Netherlands by around 2% during the first half of June. Commercial vehicle sales in the Netherlands have fallen just like other European economies, and makers are still anxious about future demand from the domestic market.
ChemAnalyst has also analysed priding dynamics for EPDM rubber in France, where the price has also declined by 2.2% in the meantime, projecting a similar market phenomenon in another European market.
Despite the fact that rising inflationary pressure amidst stable offtakes for several chemicals and petrochemicals, EPDM rubber prices remained dull in the US domestic market. As per the latest assessment, against all the odds, EPDM price plunged by 2.8% in the meantime, owing to wavering offtakes from the downstream automotive industry.
Keeping low automotive sales in mind, EPDM rubber players have started offering discounts on spot purchases in order to sustain offtakes from regular buyers. However, low supplies of raw materials like semiconductor chips have also been a major factor behind low automotive sales in the global market, as makers heard struggling to complete backlog orders.