Market Challenge - Volatility in raw material prices

The EPDM market has been facing significant challenges due to the volatility in raw material prices. As EPDM is synthesized from ethylene, propylene and diene monomers, fluctuations in the prices of these raw materials impact the overall production cost of EPDM. In the last few years, the prices of crude oil and natural gas, from which ethylene and propylene are derived, have witnessed substantial swings mainly due to uncertain geopolitical conditions and supply disruptions. Similarly, fluctuations in feedstock prices also affect the prices of diene monomers which are sourced from coal tar or petroleum sources. The unpredictable shifts in input costs create uncertainties for manufacturers to determine the final price of EPDM. This makes it difficult for companies to maintain long term contracts with consistent prices. The volatility in raw material prices thus poses major challenges for EPDM producers to achieve stable profit margins and manage overall business operations smoothly.

Market Opportunity - Development of bio-based and recyclable EPDM

The EPDM market sees significant growth opportunity in developing innovative bio-based and recyclable varieties. With growing awareness about environment protection and sustainability, there is a rising demand for green alternatives to conventional petroleum-derived polymers. EPDM manufacturers can leverage this demand by developing bio-based EPDM utilizing renewable resources like plant oils and natural rubber instead of conventional monomers. Additionally, focusing on recyclable EPDM helps address the problem of plastic waste and supports the circular economy approach. Production of recyclable varieties of EPDM which can be recovered and reused for new applications opens new markets and ensures long term business growth. Developing sustainable EPDM product lines would help gain new customers and grow market share in the long run. It is a strategic opportunity area which companies are investing in through extensive R&D activities.