South Korean EPDM Rubber Market on to a Strong Start in 2022
- 12-Jan-2022 1:59 PM
- Journalist: Jung Hoon
EPDM rubber market in South Korea has rebounded in initial weeks of 2022 after a stable last week of December 2021. Prices of EPDM rubber trended upwards as the demand for the material picked up in the early discussions. Construction industry started the year on a strong note and measured an increase in EPDM rubber offtakes after the winter holiday season.
Several market participants reported that despite there are no production interruptions in recent weeks, they are struggling to keep up with the enquiries and offers for the material. Prices have strengthened in first two weeks of 2022 and increased to USD 3255 per MT from USD 3185 per MT in the last week of December on FOB basis.
EPDM rubber market observed increased demand from downstream construction sector, although automotive sector continues to struggle with optimum production levels as manufacturers face incessant chip shortage globally. Increased budgetary allocation to the construction in 2020 provided ample opportunity to market players to increase production as well as revenue from the key sector of growth for the South Korean economy. Infrastructure building and housing construction have been regarded as major segment of demand for construction industry in the region.
As per ChemAnalyst, “Downstream demand likely to keep an upward pressure on the prices throughout the month as downstream buyers and other market participants will have little reprieve when it comes to overall prices of EPDM rubber. EPDM market is unlikely to change momentum until Q2 2022” remarked several market participants and it is likely that uptrend of EPDM rubber prices will continue into the next month. However, Buyers can expect some reprieve towards the end of Q1 and early Q2 when price may stabilize as there are speculations of demand stagnancy towards the fag end of first quarter in both domestic and international market.”