For the Quarter Ending June 2025
Asia-Pacific
• The Epichlorohydrin Rubber Price Index in APAC witnessed an overall increase of 3.5% quarter-on-quarter, settling at USD 5,320/MT MV-70 FOB Tokyo in June 2025. Prices surged in April and May, driven by robust export demand and cost inflation linked to feedstock Epichlorohydrin. However, a marginal dip in June reflected demand softening in key importing countries due to seasonal slowdowns, despite steady domestic automotive growth in Japan.
• Why did the price of Epichlorohydrin Rubber change in July 2025 in Japan? In early July, Epichlorohydrin Rubber prices remained supported amid a stable-to-bullish outlook. While foreign demand stayed muted due to holidays and monsoons in key importing nations, bullish cost-side pressures—rising Epichlorohydrin prices and limited global supply—prevented any significant decline. Japanese producers avoided aggressive price cuts, reflecting cautious optimism in recovery momentum from late Q2 trends.
• The Epichlorohydrin Rubber Production Cost Trend remained elevated throughout Q2 2025. Prices of feedstock Epichlorohydrin continued to rise, supporting bullish manufacturing costs. Although the Kashima Chemical facility resumed quickly after a short planned maintenance in June, other supply-chain constraints like labor shortages and lengthening lead times contributed to higher production costs across Japan.
• The Epichlorohydrin Rubber Demand Outlook was mixed across Q2 2025. While overseas procurement remained subdued due to holidays, flooding, and inflationary strain in countries like India and China, domestic demand saw a positive trend. Japan's automotive sales improved, offering a bullish undertone to localized Epichlorohydrin Rubber consumption. Exporters, however, reported order deferrals and hesitancy from foreign buyers amid broader market uncertainty.
• The export momentum of Epichlorohydrin Rubber remained firm in April and May, supported by robust trade during Japan’s Golden Week and restocking activities in China. Q2 exports overall reflected steady foreign interest.
• Domestic procurement in Japan remained healthy, with automotive sector growth offsetting weak global trade. Vehicle sales in June rose 5.2% month-on-month, reinforcing bullish market sentiment.
North America
• Epichlorohydrin Rubber Price Index in North America showed an overall decline quarter-on-quarter. Prices dipped in April and May, weighed by softening automotive sector demand and sufficient inventory levels. In June, prices remained subdued as downstream orders slowed further, with the end of the pre-tariff buying rush and a cyber-attack affecting dealership networks, impacting overall vehicle sales.
• Why did the price of Epichlorohydrin Rubber change in July 2025 in the USA? In early July, Epichlorohydrin Rubber prices remained under mild pressure. Demand remained weak as vehicle sales slowed and the market digested prior stockpiling activity. The bullish cost environment driven by stable Epichlorohydrin prices offered limited support, but subdued downstream consumption and economic caution kept market sentiment restrained.
• The Epichlorohydrin Rubber Production Cost Trend in the U.S. was relatively steady across Q2 2025. Feedstock Epichlorohydrin prices remained elevated through May, but operational stability at major plants and limited logistics disruptions contained further cost escalation.
• Epichlorohydrin Rubber Demand Outlook stayed subdued throughout Q2. In April, auto sales slowed from March highs. May witnessed a brief demand lift due to rush buying before tariff implementation, but June saw a sharp drop in new vehicle sales—down 5.6% YoY to 1,259,037 units—exacerbated by the end of panic buying and a cyber-attack that paralyzed dealership operations. This directly impacted tire and rubber component demand, softening Epichlorohydrin Rubber uptake.
• Export momentum of Epichlorohydrin Rubber from North America remained limited. Despite some shipments to Latin America and Canada, weak competitiveness compared to Asian suppliers and subdued international demand held back larger volumes.
• Domestic procurement in the USA was cautious throughout Q2 2025. Automotive OEMs and component suppliers scaled back bulk purchases, focusing on short-term fulfillment amid slowing vehicle sales.
Europe
• Epichlorohydrin Rubber Price Index in Europe registered a modest decline quarter-on-quarter. Despite stable input costs, prices fell steadily throughout the quarter due to persistently weak downstream demand, especially from the automotive segment, and tepid industrial consumption across Western Europe.
• Why did the price of Epichlorohydrin Rubber change in July 2025 in Europe? In early July, Epichlorohydrin Rubber prices remained under pressure. Ongoing contraction in passenger vehicle sales across key markets like Germany, France, and Italy, coupled with declining EV output and rising competition from Chinese alternatives, contributed to a bearish tone.
• The Epichlorohydrin Rubber Production Cost Trend in Europe remained mostly stable in Q2 2025. Feedstock Epichlorohydrin pricing held firm, though local producers faced elevated operational costs tied to high energy tariffs and stricter environmental compliance.
• Epichlorohydrin Rubber Demand Outlook across Europe was broadly negative through Q2. Automotive sector demand—the core driver—suffered from a 6% YoY decline in June passenger vehicle sales, with Tesla’s deliveries plunging across multiple regions. The Western European PV market underperformed amid low consumer confidence, weak macroeconomic signals, and trade tariff uncertainties.
• Export momentum of Epichlorohydrin Rubber from Europe was muted in Q2 2025. With domestic demand already underwhelming and Asia offering more competitive prices, European exporters found limited success outside the region.
• Domestic procurement in Europe was limited as buyers adopted a wait-and-watch approach. Tire manufacturers, OEM suppliers, and aftermarket players scaled back monthly intakes, prioritizing inventory optimization amid volatile demand.
For the Quarter Ending March 2025
North America
• The Epichlorohydrin Rubber Price Index in North America showed a clear downward trend in Q1 2025, primarily due to low consumer confidence and seasonal slowdown.
• The Epichlorohydrin Rubber Spot Price declined in January 2025 despite higher automotive sales, as orders from the downstream tire industry remained weak.
• February 2025 saw a temporary rise in the Price Index, driven by new orders and stronger automotive sector demand, offering a brief recovery.
• In March 2025, the Price Index resumed its downward path due to weak international and domestic demand, lowering the Epichlorohydrin Rubber Spot Price.
Why did the price of Epichlorohydrin Rubber change in April 2025 in the US?
• In April 2025, the Epichlorohydrin Rubber Price decreased further due to ongoing weak demand and lower business confidence.
• The Epichlorohydrin Rubber Production Cost Trend dropped during Q1 as feedstock Epichlorohydrin prices declined, reducing manufacturing costs.
• The Epichlorohydrin Rubber Demand Outlook for the region remains muted due to soft demand from both the tire and export sectors.
• The Epichlorohydrin Rubber Price Forecast is expected to remain under pressure in the short term due to weak demand from the tire industry and moderate recovery in automotive sales.
Europe
• The Epichlorohydrin Rubber Price Index in Europe followed a downward trend in Q1 2025, largely driven by weak demand and lower feedstock prices.
• In January 2025, despite seasonal restocking and improved automotive sales, the Spot Price remained low due to sluggish demand from the tire industry.
• A slight recovery in the Price Index was seen in February 2025, supported by pre-tariff buying activity and short-term optimism in trading.
• March 2025 witnessed another decline in the Price Index as both domestic and international demand remained soft and tariff uncertainties weakened sentiment.
Why did the price of Epichlorohydrin Rubber change in April 2025 in the Europe?
• In April 2025, the Epichlorohydrin Rubber Price decreased due to continuous weak demand and fading optimism post-tariff buying.
• The Epichlorohydrin Rubber Production Cost Trend declined due to falling feedstock Epichlorohydrin prices, further influencing pricing decisions.
• The Epichlorohydrin Rubber Demand Outlook remains weak amid high volatility and declining business confidence.
• The Epichlorohydrin Rubber forecasted to trend slightly downward or remain flat in early Q2 2025, influenced by ongoing weak demand and cautious restocking behavior.
APAC
• The Epichlorohydrin Rubber Price Index in APAC showed a general downward trajectory throughout Q1 2025, despite temporary improvements.
• In January 2025, the Spot Price declined due to seasonal slowdown and weak demand from Japan’s tire industry, even during the restocking period.
• In February 2025, the Price Index rose briefly as feedstock prices increased and downstream automotive sales picked up, improving new order volumes.
• March 2025 saw a drop in the Price Index again, as pre-tariff purchasing effects wore off and demand softened across regional and global markets.
Why did the price of Epichlorohydrin Rubber change in April 2025 in the Asia?
• In April 2025, the Price Index increased driven by escalating production costs stemming from higher feedstock Epichlorohydrin prices. Robust foreign demand, evidenced by increased March export volumes of ECH Rubber from Japan, further supported this upward trend.
• The Epichlorohydrin Rubber Production Cost Trend was mixed, with a temporary increase in February but lower costs in March tied to weaker feedstock values.
• The Epichlorohydrin Rubber Demand Outlook in APAC remains subdued, especially in Japan, which saw a 3% market decline compared to Q4 2024.
• The Epichlorohydrin Rubber Price is expected to fluctuate mildly, with a gradual recovery possible from mid-Q2 2025 depending on post-holiday demand and feedstock price movement.
• The Epichlorohydrin Rubber Spot Price may improve if China and Japan see stronger automotive activity and inventory restocking resumes.
For the Quarter Ending December 2024
North America
The fourth quarter of 2024 for Epichlorohydrin Rubber (ECO Rubber) in the North American region witnessed a mixed performance. October saw a significant price rebound in the USA, driven by a surge in new orders, fueled by a resurgent automotive sector and improved consumer sentiment amidst the Presidential Election uncertainty. Moreover, an increase in the feedstock Epichlorohydrin prices further surged the manufacturing costs during this timeframe.
However, this upward trend was short-lived. November experienced a marginal price decline due to a sufficient inventory backup. Finally, December saw a further slight price adjustment downwards as declining sales for ECO Rubber due to the destocking season prompted manufacturers to adjust their pricing accordingly. Moreover, the decline in feedstock epichlorohydrin prices further eased the manufacturing costs in December 2024.
Overall, the fourth quarter for ECO Rubber in the APAC region was characterized by an initial surge in prices followed by a period of relative stability and a subsequent marginal decline towards the end of the year.
APAC
In the fourth quarter of 2024, the Epichlorohydrin Rubber market in the APAC region experienced a pronounced uptrend, while the latter half of the fourth quarter witnessed a marginal decline. In October 2024, ECO rubber prices in Japan rebounded by 2.1% to USD 5310/MT Epichlorohydrin Rubber MV- 70 FOB Tokyo. This increase was driven by a surge in new orders from key importing nations like India and China, fueled by a resurgence in the automotive sector. Following the National Day holiday and the Diwali season, improved consumer sentiment boosted market demand, prompting Japanese manufacturers to significantly increase their quotations to maintain profitability. While the end of the peak shipping season led to lower freight charges, the overall impact on prices was limited by a substantial increase in import demand during the month. However, the marginal drop in November was attributed to no new orders for ECO Rubber amid sufficient inventory backups. Moreover, a decline in sales from the downstream automotive sector led manufacturers to marginally adjust the prices at a lower end during December 2024.
Europe
The European Epichlorohydrin Rubber (ECO Rubber) market experienced a volatile fourth quarter in 2024. October witnessed a surge in prices, primarily driven by a resurgence in the automotive sector, spurred by improved consumer sentiment. However, this upward trajectory proved short-lived. November saw a slight price correction due to the presence of ample inventory backups, which dampened demand. This trend continued into December, with prices experiencing a further marginal decline. This downward pressure was attributed to a combination of factors, including declining sales of ECO Rubber from the automotive sector during the traditional destocking season and a decrease in feedstock Epichlorohydrin prices, which alleviated manufacturing costs. Spot activity remained subdued as consumers prioritized contractual commitments, further contributing to the bearish situation during December 2024. In summary, the fourth quarter of 2024 for Germany ECO Rubber market showcased a dynamic price landscape. An initial surge driven by strong demand from the downstream automotive sector was followed by a period of price correction due to inventory buildup and declining feedstock prices.
For the Quarter Ending September 2024
North America
In North America, the third quarter of 2024 has seen a mixed trend in the Epichlorohydrin Rubber market. In July 2024, the price trend for Epichlorohydrin Rubber increased due to factors such as increased production costs and supply chain disruptions. The market was characterized by supply chain issues and increasing freight costs as a result of geopolitical concerns, which caused price trends to rise.
However, the improved performance of the automobile industry did not convert into greater demand for ECH Rubber in August, as adequate inventory levels of ECH Rubber resulted in lower consumption during this timeframe.
While the price trend has reversed during September where demand from the downstream automotive sector has declined significantly. The automotive sector faced another contraction in September, potentially due to seasonal factors, rising interest rates, or geopolitical tensions. A cautious buying climate was exacerbated by low investor sentiment in September 2024 discouraging investments in the US market. Despite these disruptions, the ECH Rubber market saw a significant drop in September 2024 as a result of severe competition.
APAC
In the third quarter of 2024, the Epichlorohydrin Rubber market in the APAC region experienced a pronounced downturn, followed by an uptrend. During July 2024, despite a decline in feedstock Epichlorohydrin (ECH) prices which typically translates into reduced production costs by exerting downward pressure, the prevailing market dynamics of Epichlorohydrin Rubber in July exhibited an opposing trend. The onset of the rainy season and subsequent floods in northern Japan wreaked havoc on the supply chain, creating a bullish market sentiment for the Epichlorohydrin Rubber. However, the improved performance of the automotive industry did not translate into increased demand for ECH Rubber during August, as the availability of ample inventory levels of ECH Rubber led to reduced consumption during this timeframe. Due to intense competition in the market, the ECH Rubber market experienced a large decline notwithstanding these disturbances during September 2024. Moreover, the market competitiveness has increased due to the promotional discounts provided by Japanese producers, which has pushed down the price of ECH Rubber in China during the third quarter.
Europe
In Europe, the Epichlorohydrin Rubber market showed a mixed trend in the third quarter of 2024. Epichlorohydrin Rubber prices rose in July 2024 because of higher manufacturing costs of feedstock Epichlorohydrin and supply chain interruptions. As a result of geopolitical concerns, the market experienced supply chain challenges and increased freight costs, causing price trends to rise.
While the pricing trend reversed in August, demand from the downstream automotive sector decreased sharply. During the traditional summer lull, market activity has decreased as industry players use the holidays to refuel. Market activity has decreased during the customary summer lull as industry participants use the time off to refuel. Some companies were even scheduling meetings for August. The car industry had another drop in September, maybe due to seasonal causes, rising interest rates, or geopolitical concerns. A cautious buying mood was aggravated by low investor sentiment in September 2024, which discouraged investment in the European market. Despite these disruptions, the ECH Rubber market experienced a large decline in September 2024 due to intense competition.
Frequently Asked Questions (FAQs):
1. What is the current price of Epichlorohydrin Rubber in APAC?
By the end of Q2 2025, Epichlorohydrin Rubber prices in Japan stood at approximately USD 5,320/MT MV-70 FOB Tokyo.
2. Why did ECH Rubber prices change in July 2025?
• APAC: Prices remained supported by elevated feedstock Epichlorohydrin costs and constrained global supply, despite seasonal demand dips in importing regions due to holidays and monsoons.
• North America: Prices stayed under mild pressure as downstream automotive demand softened and prior stockpiles were digested, with limited support from stable production costs.
• Europe: Prices remained weak due to poor automotive offtake, particularly in Germany, France, and Italy, along with increased competitive pressure from Asian-origin materials and macroeconomic uncertainty.
