EPDM Rubber Prices Continue to Plunge in Europe Amid Weak Demand Fundamentals


European markets have been observing a consistent downtrend in Ethylene Propylene Diene Monomer (EPDM) rubber market dynamics owing to stagnant demand patterns from downstream industries. EPDM rubber market has deteriorated since the beginning of the quarter in lieu of strengthening supply fundamentals and rising inventory levels.


EPDM rubber prices were assessed on the 2nd week of February and were placed at USD 3750 per MT on an FOB basis. Prices have declined by more than 9.3% since the conclusion of Q4 2021.

Stagnancy in the automotive industry continues to plague several upstream industries including the tire industry. Global chip shortage has been persistent in the last few quarters and that has culminated in stagnant production levels worldwide. Consequently, the demand for Original Equipment (OE) tires has also been severely and this, in turn, has resulted in stabilization in tire production levels. The tire industry has been heavily reliant on replacement tire consumption and due to off-season in terms of tire consumption, there have been early signs of stabilization in the tire industry.

The tire industry has also been conservative in its procurement of elastomers and thus EPDM rubber along with several other rubbers have observed weak buying sentiment. This has provided ample opportunity for a sustained increase in inventory levels in the European market.

As per ChemAnalyst, the “EPDM rubber market price is likely to remain sluggish in coming weeks owing to weak buying sentiment in the market and optimum production levels. Tire industry may observe demand improvement in Q2 as summer driving season is expected to spur consumption growth for replacement tire across the European region.” 

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