For the Quarter Ending March 2023
North America
The EPDM Rubber market showcased mixed sentiments in the first quarter of 2023, backed by fluctuating supply and demand dynamics. The prices of EPDM Rubber, which was declining in January, surged in February, only to fall back again as the quarter approached its end. As soon as the supply of semiconductors improved in the region, the automotive industry started recovering; however, the industry was soon hit by the economic instability created by the collapse of two major banks in the USA. As the automotive industry was hard hit by the economic headwinds, the consumption of EPDM rubber from the industry reduced, which eventually led to its price fall. However, In the USA, the EPDM Rubber Medium Diene prices were assessed at 3908/MT FOB Texas in March and were 13.3% higher in comparison to December, owing to a notable price rise in February.
APAC
The Asia-Pacific region mirrored the EPDM Rubber market in North America and witnessed a mixed market sentiment. Like the USA, the EPDM Rubber prices in Asia-Pacific decreased in January and increased in February, followed by another decline in March. The automotive industry, which was trying to revive in the Asia-Pacific region, soon started showcasing a downfall as the destocking of automotive inventories started in China. Tesla initiated a price war in the Chinese automotive industry by reducing the market value of automobiles owing to excess inventories and decreased sales, which encouraged other automakers to do the same, and hence destocking of automobiles started. As the automotive industry was busily destocking their inventories, the production of automobiles reduced, further impacting the consumption of EPDM Rubber. As China was dependent on other Asian countries for their EPDM Rubber import, the demand in the Asian market dropped. Hence, In Japan, the assessed price of EPDM Rubber Medium Diene was USD 2794/MT FOB Tokyo in March, which demonstrated a loss of 10.1% from December to March.
Europe
Unlike APAC and North America, the EPDM Rubber price in the European market was almost stagnant in the first month of quarter 1, followed by a notable rise in the subsequent months. The EPDM Rubber prices surged dramatically in February, backed by improved semiconductor supply as China’s market finally reopened to a greater extent. As the supply of semiconductors improved, the production output of the automotive industry increased, which surged the consumption of EPDM rubber in the industry. Furthermore, there was pent-up demand for automobiles in the European market, which increased the sales of automobiles during the quarter, eventually causing a rise in inquiries for EPDM rubber. Hence, In the Netherlands, the assessed price of EPDM Rubber Medium Diene was USD 3892/MT FOB Rotterdam in March, which was 18% higher in comparison to December.
For the Quarter Ending December 2022
North America
The market value of EPDM Rubber showcased mixed sentiments in North America during the fourth quarter of 2022, backed by fluctuations in downstream demand from different sectors. As the downstream automotive and construction industries were not showing any significant improvement in growth in the domestic market, the inquiry for EPDM Rubber from these sectors remained irregular during the quarter. Furthermore, declining upstream costs and costs of production were other factors contributing towards shifting market scenarios for EPDM Rubber. Hence, the pricing trend of EPDM Rubber declined in October and inclined in November, only to fall back again in December. The prices of EPDM Rubber Medium Diene in the USA were lesser than the price in September 2022.
APAC
In the fourth quarter of 2022, the market value of EPDM Rubber in the APAC region displayed conflicting attitudes, supported by variations in downstream demand from various industries. The demand for EPDM Rubber from the downstream automotive and construction industries persisted irregularly during the quarter because of the lack of consistent growth of these sectors in the domestic market. Variable production costs and upstream expenses were additional elements that affected how the market for EPDM Rubber developed. As a result, the pricing trend of EPDM Rubber showed an uptick in the market, followed by a consistent decline in the next two months.
Europe
Amidst fluctuating downstream demand from various industries, the market value of EPDM Rubber in Europe showed conflicting sentiment in the fourth quarter of 2022. The demand for EPDM Rubber from the downstream automotive and construction industries persisted irregularly throughout the quarter since these sectors' domestic markets did not exhibit consistent development. Other elements that contributed to fluctuating market conditions for EPDM Rubber included varying upstream costs and production costs. As a result, the price of EPDM Rubber decreased in October and increased in November before falling again in December 2022.
For the Quarter Ending September 2022
North America
The EPDM Rubber prices took an upward turn in July 2022 but then declined consistently throughout the 3rd quarter of 2022 in the North American market. The primary reason behind the price drop of EPDM Rubber was poor downstream demand from the construction and automotive industries. As the automotive and construction sectors' performance remained underwhelming in the market owing to semiconductor shortages and expensive building materials, the EPDM Rubber offtake from these industries was sluggish during the quarter. Besides, decreased freight rates further lowered the price value of EPDM Rubber in the market. Hence, the assessed price value of EPDM Rubber Medium Diene was USD 3571/MT FOB Texas and USD 3217/MT CFR Texas in the USA during September 2022.
APAC
Due to shifting dynamics between supply and demand, EPDM Rubber prices in the Asia-Pacific region remained to fluctuate throughout the third quarter of 2022. Prices for EPDM Rubbers rose in July and fell in August, followed by another rise in September. EPDM Rubber's price decline in August was primarily caused by increased industrial production rates, surplus supply, and overflowing stocks, further reinforced by weak downstream demand from the automotive and construction industries. The market witnessed supply constraints as the typhoon disrupted supply chains and an improvement in demand in September from downstream industries, which led to a change in the price of EPDM Rubbers. As a result, the cost of EPDM Rubber Medium Diene was USD 3357/MT FOB Tokyo in Japan in September 2022.
Europe
In July 2022, EPDM Rubber prices rose; however, they continued to fall steadily throughout the third quarter in the European market. Poor downstream demand from the construction and automobile industries was the main factor contributing to the price reduction of EPDM Rubber. Due to semiconductor shortages and expensive building materials, the automobile and construction industries were underperforming in the market, negatively impacting EPDM Rubber's offtake during the quarter. Consumer sentiment has been underwhelming as the speculations around a European recession intensified in Q3. Additionally, falling ocean freight costs significantly reduced the market value of EPDM Rubber as the demand dynamics resulted in curtailed consumption. As a result, the estimated price for EPDM Rubber Medium Diene in Germany during September 2022 was USD 3785/MT FOB Hamburg and USD 3343/MT CFR Hamburg.
For the Quarter Ending June 2022
North America
EPDM rubber prices increased consistently in the US for the second quarter of 2022. Bullish sentiment in the feedstock market, upheaval in the energy market, and undue inflation contributed to the soaring EPDM rubber prices. EPDM rubber price rose sharply by more than 12% in Q2, and its prices were assessed at USD 4067 per MT on a FOB basis In the USA. Dow and Lion Elastomers increased the prices of EPDM rubber by a significant amount to incorporate the increased cost of production and secure margins. Meanwhile, demand dynamics improved in the US as the automotive industry witnessed a jump in production after an underwhelming 2021.
APAC
During the Q2 of 2022, the EPDM rubber market in the APAC witnessed a major bullish rally owing to the inflationary pressure from the upstream market. Kumho Polychem, a significant producer of EPDM rubber in the region, opted for hefty price increases in the second quarter. Feedstock olefins (Ethylene and Propylene) market went soaring when Naphtha prices in the APAC region broke charts, reaching record levels. Producers had limited choice, and consumers must pay exorbitant prices to secure the material. Hence as of June 2022, in South Korea, EPDM rubber prices were assessed at more than USD 3500 per MT for the medium grade. China, India, and other important dependent markets also faced the brunt of high prices of EPDM rubber. However, covid restrictions in China did inhibit the demand dynamics.
Europe
Q2 has been a tumultuous quarter for the European market, where nearly every commodity faced the wrath of unabating inflation in the backdrop of the Russian-Ukrainian war. The case of the EPDM rubber market has been no different where domestic prices of the material produced reached record highs. Feedstock prices went haywire, and polymer grade Propylene and Ethylene contracts prices consistently rose for the first two months of the quarter; however contract prices eased towards the end of the quarter, reliving the end-users. Despite the ease in feedstock prices, EPDM rubber prices remained rampant throughout the quarter as energy prices kept the cost of production on the higher side. Hence, after the conclusion of the second quarter, EPDM rubber prices were assessed at USD 4168 per MT on a FOB basis.
For the Quarter Ending March 2022
North America
EPDM rubber market started the year on a strong note where inflationary pressure over the available material continued to drive price upwards in the first quarter. EPDM rubber prices gained close to USD 200 per MT during the first month of 2022 on FOB basis. The increase in prices came in the backdrop of stable consumption levels, limited inventory levels in the US market and rising cost of production of EPDM rubber. However, in H2 of Q1 EPDM rubber market stabilized in the US market on the back of firm cost pressure and stable to weak demand fundamentals. Olefins prices remained stable to firm in the domestic market as natural gas prices observed limited to no volatility despite skyrocketing LNG prices in the European market. In March, EPDM rubber prices were assessed at USD 3570 per MT on FOB basis.
Asia Pacific
EPDM rubber market has been firm to strong owing to robust demand and limited availability of the material in the Indian domestic market in Q1 of 2022. India majorly imports EPDM rubber from neighbouring South Asia and East Asian countries. Japan and South Korea forms key exporters and in the light of recent developments in Europe and its implication on global supply chain, material supply has been limited and imports has also become costly. On demand side, automotive sector has been a key sector of consumption and production rates have improved in the automotive industry in this quarter after stagnancy in the last few quarters. On the back of aforementioned factors, EPDM rubber prices were assessed at USD 3546.80 (INR 268860) per MT Ex-Depot Mumbai in March 2022. In South Korea, EPDM rubber market rebounded in Q1 2022 after a stable December 2021. Prices of EPDM rubber trended upwards as the demand for the material picked up in the early discussions. Several market participants reported that despite there were no production interruptions, they were struggling to keep up with the enquiries and offers for the material. EPDM prices have strengthened and were assessed at USD 3345 per MT.
Europe
During the first quarter, EPDM rubber market has observed significant rise in the prices in the backdrop of rising cost pressure from feedstocks and catalysts and stable demand from downstream construction and automotive industry. Domestic production rates have been weak as producers are aware of the demand dynamics and have been manoeuvring the material availability in order to keep the supply fundamentals in check. Meanwhile, exports have deteriorated as the trading on Black Sea was hampered while several cities of China have been under lockdown due to resurgence of covid constraining the container availability and logistics. On demand side, automotive and construction industry kept the volume offtakes on a weak to stable levels. In the backdrop of aforementioned factor, EPDM rubber prices were assessed at USD 3610 per MT on FOB basis after the conclusion of March 2022.
For the Quarter Ending December 2021
North America
The US EPDM (Medium Diene) spot prices continued their uptrend through to Q4 after having remained stable for the month of September. Prices of commercial grade EPDM have followed suit. The uptrend is mainly due to the rising prices of metallocene catalysts that are increasingly being used as an alternative to the traditional Ziegler-natta catalyst. The decreasing costs of feedstock comonomers polyethylene and polypropylene had lower impact compared to the increasing catalyst costs. Prices of Medium Diene EPDM were assessed at 3595 USD/Mt FOB Texas respectively in November. Stagnancy in natural gas prices has epitomized the EPDM market sentiment in December where prices remained muted in the last weeks of the year. Feedstock Ethylene and propylene have maintained balance as prices continue to show minimum fluctuations in lieu of the holiday season.
APAC
Rising cost of raw materials and volatility in energy feedstocks have increased the overall cost of production for EPDM rubber which further translated into increased prices of the material as manufacturers and suppliers look to keep their margins. Lotte and Kumho, both manufacturers have announced price increases for the material leaving Korean ports. Meanwhile, buyers were observed having backseats in pricing assessments for a major part of the quarter as suppliers maintained the upper hand. Demand from downstream sectors has been strong pressuring market participants to keep the uptrend in the overall pricing. EPDM rubber prices, though, stabilized towards the end of Q4 epitomizing demand decline towards the end of the year caused by winter holiday season in Republic of Korea. EPDM rubber prices in December were stable at USD 3180 per MT on FOB basis for medium diene grade.
Europe
During the fourth quarter of 2021, the price of EPDM rubber has increased taking cues from strong pricing environment across the globe. Gas prices in EU kept on increasing due to high electricity surcharges which led most of the chemical producers to increase their product prices. Furthermore, due to market tightness during the last quarter, prices of synthetic rubbers have increased steeply. Players have also notified over hovering impact of surge in crude oil prices and tightened imports which directly impacts the overall product prices. EPDM rubber price has been assessed at USD 3918/MT FD Wiesbaden (Germany) for Medium Diene grade while CFR Hamburg prices were last assessed at USD 3843/MT in November 2021.
For the Quarter Ending September 2021
North America
In North America, EPDM Rubber prices experienced an upward rally in the third quarter of 2021 backed by the limited supply of the product and spike in the upstream values. The EPDM Rubber market dynamics showcased structural disorder as the global rubber industry seemed to be entering a consolidation, that supported the pricing trend in the region during this quarter. In addition, supply of EPDM rubber remained under doldrums as many of its manufacturers announced to have closed their production facilities in August as a repercussion of Ida Hurricane in the Gulf Coast of USA that resulted into the spike in the prices of EPDM Rubber. Moreover, Dow declared to move one of its plants in Plaquemine towards Plastomers at the cost of thermoset EPDM to strategize its elastomers sales. FOB Texas prices for EPDM Rubber medium diene hovered around USD 3130-3180 per MT in September.
Asia Pacific
In Q3 2021, EPDM Rubber prices witnessed an upward trend in the Asian markets mirroring North American markets of EPDM Rubber. A modest demand outlook in the Asian region was witnessed due to the slowdown in the manufacturing rates in the automotive industry backed by the limited availability of the semiconductor chips. In India, a marginal rise in the prices of EPDM Rubber was observed due to the spiraling freight charges and lower imports supported by congestion on the interoceanic trade routes. Despite of the supply shortage, the price hike remained moderate because of the lower demand from the downstream automotive sector. In India, EPDM (medium diene) EX-Depot Mumbai monthly average prices were assessed at USD 2015.87 per MT in September observing a marginal hike by USD 39 per MT since July.
Europe
During the third quarter of 2021, EPDM Rubber market outlook in Europe appeared bullish due to the firm demand from the downstream sectors after the resurgence of the industrial and the commercial activities and the tight supplies of the product. Several factors including lower production activities due to the energy crisis and delayed imports from Asia also contributed to the hike in the prices of EPDM in Europe. In addition, spike in values of the feedstock further sent ripples to the prices of EPDM Rubber in this quarter.
For the Quarter Ending June 2021
North America
Even though synthetic rubber supplies improved compared to the first quarter, but the overall EPDM Rubber market in North America remained tight. Despite the restoration of the industrial infrastructure and improved production capacity after it was badly impacted by the winter storm, the market outlook stayed under pressure. Availability of the several upstream commodities was restricted due to the diversion of their large volumes to cope up with the enquiries from other derivatives manufacturing industries. Demand remained stable as automotive manufacturers waited for the ease in chip-shortages while construction sector reported strong sales. EPDM Rubber pricing trend observed a multi fold surge in the offers with FOB Louisiana prices settled at USD 1525 per tonne in June.
Asia Pacific
Demand outlook in the southeast Asian region was subdued due to the restricted economic practices and limited public mobility due to the impact of second COVID wave in India, which further affected the volume of EPDM imports. Moreover, continuous flow of imported cargoes from China forced the Indian manufacturers to reduce the offers of EPDM Rubber in the domestic market. The demand outlook in the Asia Pacific was concentrated over the downstream tire industries, although offtakes were also consistent from the construction sector. In India, EPDM (high diene) price was assessed at USD 2089 per tonne in June.
Europe
EPDM Rubber supplies in the European region were mainly constrained during the second quarter of 2021, owing to exceptional demand which surpassed the region supply availability. Although the arrival of Chinese cargoes eased the situation to certain levels. Overall demand was bolstered from the automotive sector despite the low production amidst the global semiconductor chipset shortages, whereas the offtakes from the construction observed a seasonal hike during the second quarter. Raw material shortages sent ripples to the price trend in Q2.
For the Quarter Ending March 2021
North America
EPDM supplies remain tight to healthy during the first quarter of 2021, as majority stocks withing US remained hampered amid the production problems arises in the US gulf region due to unprecedented cold weather conditions. However, the demand outlook was stable from the various segments such as automotive sector, building and construction, electronics etc. In mid quarter, force majeure was declared by Lion Elastomers due to the production hindrance caused by the unprecedented cold weather conditions.
Asia-Pacific (APAC)
During Q1 2021, the supplies of EPDM Rubber in Asia improved as compared to the previous quarters, due to significant recovery in the production capacity, as major economies were trying to recover the losses occurred during the COVID pandemic. Much-needed rebound in the automotive sector due to the improved production and transportation lifted the demand of EPDM Rubber during the quarter. In India, EPDM prices maintained an average of USD 1980 per MT and USD 1967 per MT for the EPDM (high-diene) and EPDM (medium-diene) grades, respectively.
Europe
EPDM demand remained dampened in the European region, as several economies in the region declared lockdowns amid the resurgence of second wave of COVID, which was further pushed by the turnaround caused due to extreme cold weather in northeast region. The resurgence of COVID in the region impacted the automotive sector negatively, which lead to the decrement in consumption of EPDM Rubber and pressured demand. The supply tightness is likely to be further exacerbated by the shutdown of Exxon Mobil’s elastomers facility in France which is scheduled for maintenance in the mid-2021.
For the Quarter Ending December 2020
Asia-Pacific (APAC)
The supply of EPDM rubber remained tight for a large part of Q4 due to production cuts at the upstream units. Sharp resurgence in the automotive and construction industries which rebounded in the Q4 helped in offsetting the downfall observed in the last two quarters. The The key technological advancements during the quarter included material crosslinking technology by the Japanese chemical firm Toyoda Gosei Co. Ltd and graduate school of frontier sciences (University of Tokyo) to develop a new grade of EPDM Rubber with enhanced toughness by almost six folds. The rebound in economies propelled the rubber demand by the downstream sectors which reported inclination in the EPDM price curve during Q4 pushed by sharp inclination along the upstream price curve during Q4. Finding a balance between improved demand and firming raw material, average price of EPDM Rubber (medium diene grade) was maintained around USD 1962 per tonne while the price of EPDM (high diene grade) witnessed a slump in the first half of of Q4 to settle around USD 2025.79 per tonne.
North America
Sharp rebound in the US and Mexican automotive industry served well for the regional EPDM producers while the overall market outlook seemed dim over restrained exports due to soaring freight. Regional EPDM exports faced a huge blow in December as China imposed temporary anti-dumping measures on the US and other nations with tariffs ranging between 12.5% to 222% for a period of five-years. China imposed tariffs of 222% over Dow Chemicals and 215% for ExxonMobil in its response to excessive dumping of the product by these producers. However, the demand for EPDM in the North American region remained well above Q3 due to ramped up automotive manufacturing in the US and Mexico.
Europe
The supply of EPDM gained pace in the first half of Q4, but the second round of lockdown in some countries due to surging COVID-19 cases restrained the sectoral revival. Exports were impacted by the temporary levies imposed by China over EPDM exports from the EU. Arlanxeo Netherlands BV, ExxonMobil Chemical France and Versalis Spa seem the major producers impacted by the imposed tariffs ranging between 18.1% to 31.7%. Meanwhile the regional demand of EPDM Rubber seemed tepid as the sales of automotive fell declined m-o-m by 4% in December and the registration of total new vehicles dropped by 3.7% over the previous quarter.
