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Market Research Report on EPDM Rubber



EPDM (Ethylene Propylene Diene Monomer) is an elastomer. It denotes a terpolymer based on three monomers namely ethylene, propylene and a non-conjugated diene. EPDM finds use as elastomer in several growth oriented application sectors such as automobile, building and construction, wires and cables, etc.

EPDM Market Research Report

EPDM Market Research Report

Supply scenario – Period 2012

Global installed capacity       1,266,000 metric tonnes

Capacity utilization              90% on an average

Global production                Around 1,394,000 metric tonnes

Future installed capacity and production estimates (In metric tonnes)

Period

**Installed capacity

*Production

2012

1,266,000

1,139,400

2015

1,401,000

1,260,900

2020

1,521,000

1,368,900

*Considering capacity utilization of 90%

**Considering all the announced projects would be commissioned by 2016

Demand drivers and growth

EPDM is the most used non-tyre synthetic rubber and is recording steady demand growth amongst the synthetic rubbers. The growth in demand for EPDM will be driven by the performance of the application sectors, of which automobile sector constitutes the largest segment. The application sectors are growth oriented.

Overall AAGR through 2020  : 4.6%

Global demand for EPDM – Period 2012

Global demand                                            1.14 million tonnes per annum

Pattern of application sectorwise demand

EPDM Market Demand

EPDM Market Demand

Projected demand supply scenario – Period 2020

(in million metric tonnes per annum)

Period

**Installed capacity

*Production

Demand

Gap in supply

2012

1.266

1.14

1.14

Matches the demand

2015

1.401

1.26

1.37

0.11

2020

1.521

1.37

1.72

0.35

 

Global Installed Capacity

Period 2012

Global Installed capacity 1.266 million metric tonnes

Pattern of region wise installed capacity

EPDM Installed Capacity

EPDM Installed Capacity

The United States is the biggest EPDM producer.  Japan and Korea come next.

Pattern of company wise installed capacity

EPDM Installed Capacity of Companies

EPDM Installed Capacity of Companies

Global production – Period 2012

Global production            Around 1.14 million metric tonnes

EPDM Manufacturers

Company

Company

Location

Capacity (Metric Tonnes)

Europe

Lanxess (erstwhile DSM Elastomers)

Geleen, Netherlands

160,000

Lanxess

Marl, Germany

65,000

Nizhnekamsk–neftechim

Nizhnekamsk, Russia

30,000

Polimeri Europa

Ferrara, Italy

85,000

ExxonMobil Chemical

Notre Dame de Gravenchon, France

85,000

Americas

Lion Copolymer

Geismar, Louisiana, US

91,000

Lanxess (erstwhile DSM Elastomers)

Triunfo, Brazil

40,000

Dow Elastomers

Plaquemine, Louisiana, Texas, US

90,000

ExxonMobil Chemical

Baton Rouge, Louisiana, US

180,000

Lanxess

Orange, Texas, US

55,000

Asia

Japan Synthetic Rubber

Kashima, Yokkaichi, Japan

25,000

Kumho Polychem

Yeosu Petrochemistry Complex, South Korea

95,000

SK Energy

South Korea

30,000

Mitsui Petrochemical

Chiba, Japan

120,000

PetroChina

Jilin, China

75,000

Sumitomo Chemical

Chiba, Japan

40,000

385,000

World

1,266,000

Demand supply scenario

Globally, EPDM is likely to be in tight supply situation, in view of its steady growth in demand and new capacity creation not catching up with the growth in the demand. In Asia Pacific region, particularly in countries like India and China, the demand growth is likely to be high in the region of 8.5% per annum. Automotive industry drives the demand for EPDM, followed by wiring and cable insulation, moulded products and rubber hoses for industry. Such user industries have high level of relevance to the industrial and economic growth pattern in all regions.

Considering the likely growth in demand in diversified application sectors in all regions, there is strong case for capacity creation for EPDM.

EPDM Price Analysis

EPDM price in different regions is given below:

Region

CIF price USD per tonne

FOB price

USA

3268

2688

Europe

2964

3119

Asia

3325

3377

EPDM Regional price – Period: 2006 to 2011

EPDM Price

EPDM Price

Recommendation

Technology for the EPDM project has to be sourced from well established producer

It is necessary to have firm tie up arrangement for the long term supply of feed stock, namely ethylene and propylene.

It is preferable to locate the project close to the ethylene cracker.

The global market can be targeted for the product outlet

Raw material availability has to be tied up with the supplier on long term contract.

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3 Responses to “Market Research Report on EPDM Rubber”

  1. Arthur Dodge says:

    Interested in market research on the EPDM colored rubber granule global market. Colored EPDM granules are primarily used for outdoor sports construction markets. Interested if this information is available? Thanks

    • analyst says:

      Hi Arthur. We do not have a report on EPDM colored rubber granules at the moment. But we can certainly prepare one within 2 to 3 weeks timeframe. Do get in touch with us should you be interested.

  2. tuvi soreq says:

    Dear Sirs and Ladies.
    Thanks for the detailed report about EPDM worldwide.
    We represent Kumho marketing their EPDM to Israeli factories.
    Please be so kind to email me a short updated report if available. We see in your report that Kumho produces 90,000
    tons per year when their web site says 220,000 mt.
    SK produce 30,000 mt in Korea. Hoe much are they producing today in Korea and how much in China?
    What are present prices in China and Korea?
    Regards Tuvi

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