The global EPDM rubber market moved higher during Q2 2026 as geopolitical tensions, rising crude oil costs, and disruptions in international supply chains affected the availability of important raw materials. The market was particularly firm during the first two months of the quarter, when uncertainty around the Middle East and disruptions near the Strait of Hormuz created pressure across the petrochemical industry.
EPDM, or Ethylene Propylene Diene Monomer rubber, is widely used in automotive components, construction materials, roofing systems, seals, hoses, electrical applications, and other industrial products. The material is valued for its resistance to weather, heat, ozone, and moisture. Because EPDM production depends on important petrochemical feedstocks such as ethylene and propylene, changes in crude oil and naphtha markets can directly influence production costs.
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During the early part of Q2 2026, the closure and disruption around the Strait of Hormuz affected naphtha supply flows and created uncertainty for petrochemical producers. Naphtha is an important feedstock for the production of several chemicals, including ethylene and propylene. When its availability becomes limited, producers can face higher input costs and tighter supply conditions.
Rising crude oil values also added pressure during the beginning of the quarter. Higher energy and feedstock costs increased the cost of producing EPDM rubber, encouraging suppliers to maintain stronger offers. At the same time, logistics disruptions made it more difficult to move material between major producing and consuming regions.
The EPDM Rubber Price Trend during Q2 was therefore strongly influenced by supply and cost factors. Prices moved higher in several major markets, although the level of increase varied depending on local supply conditions, import dependence, and regional demand.
Toward the end of the quarter, geopolitical concerns began to ease. Feedstock flows gradually improved, helping reduce some of the pressure that had affected the market earlier. This created a more balanced environment in June, although not every market experienced the same level of correction.
Global Market Conditions During Q2 2026
The first part of Q2 was marked by supply uncertainty. Disruptions in the Middle East affected crude oil and naphtha trade, creating challenges throughout the petrochemical supply chain.
When naphtha flows are disrupted, the impact can move quickly into downstream markets. Producers of ethylene and propylene may face higher costs or limited availability, which can eventually increase the cost of producing EPDM.
Higher crude oil values also increased energy expenses. Manufacturing synthetic rubber requires energy and chemical feedstocks, so rising costs can affect producer margins. Suppliers generally respond by maintaining higher offers when replacement and production costs increase.
Supply chain disruptions created additional pressure. Delays in shipments and limited availability encouraged buyers to secure material for regular production. In some markets, competition for available cargoes became stronger, further supporting supplier pricing.
By June, conditions started improving. Better feedstock availability reduced some of the earlier supply concerns. However, the market response varied from country to country depending on local inventories and the availability of imported material.
EPDM Market in the USA
The US market recorded an increase of around 18% during Q2 2026. The rise was mainly supported by tighter feedstock availability, higher crude oil values, and increased energy costs.
At the beginning of the quarter, disruptions around the Strait of Hormuz affected global feedstock flows. This created uncertainty around the availability of materials required for domestic EPDM production.
Ethylene and propylene costs increased as upstream conditions became tighter. Since these are important components in EPDM production, higher feedstock values raised manufacturing expenses for producers.
Limited material availability also strengthened the market. Buyers continued purchasing EPDM for automotive, construction, and industrial applications, while supply conditions remained relatively tight.
Suppliers therefore maintained firm offers through most of the quarter. Higher production costs and supply chain uncertainty gave producers greater confidence in the market.
June Market Movement in the USA
The US market experienced a correction of around 2% in June 2026.
The decline was mainly linked to easing feedstock costs. As upstream markets became more stable, the cost pressure on EPDM producers reduced.
Supply conditions also improved gradually. Better material availability reduced the urgency among buyers and encouraged a more balanced approach to procurement.
The correction remained moderate because the market had experienced a strong increase earlier in the quarter. Demand from downstream industries also continued to provide support, preventing a larger decline.
EPDM Market in China
China recorded one of the strongest increases during Q2, with values rising by around 28%.
The market was heavily affected by supply disruptions from South Korea. South Korea is an important regional supplier of petrochemical and rubber materials, and disruptions to production and shipments had a direct impact on Chinese buyers.
Middle East tensions affected naphtha availability, which increased production costs for key feedstocks such as ethylene and propylene. South Korean producers therefore faced higher manufacturing expenses.
Reduced production availability further tightened the regional market. Fewer available cargoes meant that Chinese importers faced stronger replacement costs and more competition for material.
Supply chain disruptions also affected delivery schedules. When shipments are delayed, buyers may increase procurement activity to protect their production requirements. This helped maintain strong supplier sentiment during the quarter.
June Market Movement in China
Unlike the US market, China did not experience a significant correction in June. Instead, values increased by around 1%.
Supply constraints continued to affect the market despite some improvement in broader geopolitical conditions. Material availability remained relatively tight, limiting the ability of buyers to negotiate substantially lower prices.
Feedstock costs also remained supported. As a result, producers continued to maintain relatively firm offers.
The small increase in June showed that the Chinese market remained under supply pressure even as some international conditions started improving.
EPDM Market in India
India recorded the strongest increase among the markets covered, with values rising by around 30% during Q2 2026.
The Indian market was strongly affected by disruptions in Asian feedstock supply. The closure and disruption around the Strait of Hormuz restricted the movement of important raw materials and affected material inflows.
Limited naphtha availability created pressure on ethylene and propylene production. Higher feedstock costs eventually increased the cost of producing and importing EPDM.
India also faced tighter material availability. When imports became less predictable, competition among buyers increased. Companies that needed regular supplies for manufacturing were more willing to secure available material at higher prices.
This created a strong market environment throughout much of the quarter. Suppliers maintained firm offers because replacement costs were elevated and demand continued.
EPDM is used in a wide range of Indian industries, including automotive, construction, and industrial manufacturing. Regular consumption from these sectors helped support the market even as prices increased.
June Market Movement in India
The Indian market showed a small correction of around 1% in June.
Feedstock availability improved gradually, reducing some of the supply pressure experienced earlier in the quarter. Buyers became slightly more comfortable about material availability and reduced aggressive procurement.
The correction remained limited because the market was still adjusting after the strong increases recorded during April and May. Replacement costs and overall supply conditions continued to support relatively firm market levels.
Role of Feedstock Costs
The Q2 2026 market clearly demonstrated the importance of ethylene and propylene for EPDM production. When naphtha availability became restricted, the impact moved through the petrochemical supply chain.
Higher crude oil values added further pressure. Energy costs can influence both manufacturing and transportation, while stronger feedstock costs directly affect the economics of synthetic rubber production.
When feedstock availability began improving toward the end of Q2, markets started showing signs of stabilization. The response was not identical everywhere because each country had different inventory levels and supply conditions.
Market Outlook
The EPDM market ended Q2 2026 at significantly higher levels compared with Q1. The USA recorded an increase of around 18%, China increased by approximately 28%, and India experienced a rise of about 30%.
The June market movement showed that conditions were gradually becoming more balanced. The USA and India recorded small corrections as feedstock availability improved, while China continued to rise because supply remained constrained.
Going forward, crude oil prices, naphtha availability, and ethylene and propylene costs will remain important factors for the market. Improved supply chains could reduce some of the pressure, but any renewed disruption in major trade routes could quickly affect availability again.
Demand from automotive, construction, and industrial sectors will also influence the market direction. Continued manufacturing activity could provide support, while weaker purchasing may limit further increases.
Overall, EPDM Rubber Prices remained elevated during Q2 2026 despite signs of stabilization toward the end of the quarter. The market was driven by higher feedstock costs, supply disruptions, and strong replacement values. Future movement will depend largely on global energy markets, regional production availability, international logistics, and downstream industrial demand.
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