According to foreign media on June 12th, since October 2018, due to oversupply and weak performance of China and India's auto industry, demand for EPDM in Asian markets has slowed down, resulting in a continuous drop in spot prices of 8 Months long, it is likely to pick up in the near future.
The data shows that as of the week of June 5, China's EPDM spot price was $1,700~1800/tonne (CIF), down 26% from the beginning of October 2018 (year-on-year, same below). In Southeast Asia and India, they fell 16% and 20% respectively, to 1800-1900 US dollars / ton (cost plus freight).
A major supplier said: “We have to continue to cut prices because buyers are not willing to place orders in the face of sluggish demand.”
After the launch of a new plant in Saudi Arabia, the inflow of cheap bulk cargo from the Middle East has also brought downward pressure on the Asian market. A trader said: "The price cuts by Middle Eastern producers are to win market share, which has prompted other manufacturers to follow suit." It is reported that the CIF price of some Middle Eastern goods is 1400~1500 US dollars / ton.
At the same time, especially the US auto industry has been weakened by the escalation of Sino-US trade wars, and the global economic slowdown has put pressure on the market.
A downstream buyer in China said: “Because there are too many supplies, we don’t have to buy too much. We only buy the minimum number of products to meet the basic needs.”
Market sources said weak market fundamentals may not change in the near term as demand has entered the off-season. A regional supplier said: "Summer (June to August) demand may remain weak, which will be detrimental to the EPDM market