What factors affect the price of EPDM plastic?

The price of EPDM plastic is influenced by various factors such as supply and demand, raw material costs, and product quality, as detailed below:

Supply and demand relationship

When the market demand for EPDM plastic increases, such as in the expansion of the automotive industry and the increase in construction projects, but the supply fails to keep up in a timely manner, the price often rises. Conversely, if there is an oversupply, prices may fall. For instance, in the first half of 2024, the price of EPDM plastic remained relatively high due to tight supply from the supply side. In August, the number of imported arrivals increased, the supply tightness eased, and prices dropped significantly.

Raw material cost

The main raw materials of EPDM plastic are ethylene and propylene. Fluctuations in crude oil prices will directly affect the prices of ethylene and propylene, and thereby influence the production cost and market price of EPDM plastic. When the price of crude oil rises, the price of EPDM plastic usually follows suit.

Product quality

High-quality EPDM plastic, such as virgin particle materials with better wear resistance, anti-slip properties and meeting environmental protection standards, will be more expensive than ordinary products. For instance, national standard EPDM particles comply with relevant standards, are non-toxic and odorless, and cost approximately 80 to 150 yuan per square meter. In contrast, the price of non-standard or recycled materials may be as low as 40 to 70 yuan per square meter (it is not recommended to use non-standard or recycled materials).

Production technology

The advancement of production technology can enhance production efficiency, reduce costs, help stabilize market prices, and may even lead to a decline in prices. With the continuous improvement of production technology, the production cost of EPDM plastic may gradually decrease, thereby affecting its market price.

Macroeconomics

Uncertainties in the global economy, such as trade wars, geopolitical tensions and changes in monetary policies, may all have an impact on the price of EPDM plastic. The trade war may lead to disruptions in the raw material supply chain, affecting supply and prices. Loose monetary policy may lead to inflation and push up prices.

Thickness and specification

The greater the thickness of EPDM plastic products, the more materials are used and the higher the price is usually. For instance, for EPDM plastic running tracks, the cost will increase for every additional 1 millimeter in thickness.

Construction difficulty

The conditions of the construction site and the construction techniques will affect the price. If the terrain of the site is complex or the environment is harsh, the construction difficulty will be high, the labor and equipment costs will increase, and the price will be higher. In addition, the price will vary depending on different construction techniques, such as spraying and laying.

Brand factor

EPDM plastic from particularly well-known brands has a high brand premium and relatively high prices. Some small or unknown brands, in order to compete in the market, may offer lower prices.