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Stability in EPDM Rubber Prices Amid Lower Demand and Limited Biddings
Stability in EPDM Rubber Prices Amid Lower Demand and Limited Biddings

Stability in EPDM Rubber Prices Amid Lower Demand and Limited Biddings

  • 18-Jan-2024 2:49 PM
  • Journalist: Jung Hoon

As of the second week of January, the price of EPDM Rubber in the European market has remained stable. This price stability of EPDM Rubber is primarily influenced by decreased demand from downstream sectors such as the automobile and construction industries. The surplus EPDM Rubber inventories among suppliers have led to continuous destocking efforts as they adapt to the lower demand in the market.

In France, the price of EPDM Rubber remained stable at 2950 USD/MT FOB-Rotterdam in 2nd week of January. Despite a downturn in the European Union's automobile sector, French new car registrations saw a substantial 14.5% increase in December, contributing to overall market growth with a 16.1% rise in sales. However, the construction sector in France faced challenges, with a sharp decline in new orders and deep contractions in residential and commercial building work, as per the latest HCOB PMI data. The HCOB France Construction PMI Total Activity Index for December indicated an accelerated rate of reduction in building work across the country. This sustained downturn reflects challenging conditions in the construction sector. The mixed demands from the downstream market, with positive trends in the automobile industry and challenges in construction, have influenced the overall demand for EPDM Rubber in the French market.

The EPDM Rubber market in Germany exhibited a stable trend at 2820 FOB-Hamburg in 2nd week of January. However, the challenges faced by Germany, the largest automobile producer in the European Union, were evident in a substantial year-on-year decrease of 23% in new car registrations during December. The decrease in economic performance, along with a 1.55% decline from November 2023, is linked to the early cessation of the environmental incentive for electric vehicle (EV) acquisitions. Both the manufacturing and services sectors in Germany experienced a reduction in output in December, maintaining contraction rates at the same level as the preceding month. Germany's economic downturn proved to be a notable hindrance to business activity across the Euro area, as indicated by PMI data. Additionally, German construction activity continued its decline in 2023, facing challenges stemming from market uncertainty and high interest rates. This has created no significant changes in the demand and the supply chain of EPDM Rubber in the European market leading to the stability in the price.

According to ChemAnalyst's expectations, the price of EPDM Rubber is anticipated to experience a bearish trend in the upcoming sessions. The European market for EPDM Rubber has observed destocking of inventories among suppliers. Manufacturers of EPDM Rubber are reluctant to engage in further production due to lower demand from the downstream construction and automobile sectors. In the current downward market trend, suppliers are also refraining from initiating fresh bidding for inventories. These anticipations are likely to impact the price of EPDM Rubber in the European market in the upcoming sessions.

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