Is There Still Hope for U.S. Elastomer Market to Revive in April?

Texas, USA: The Elastomer market has shown a downward or stable trend for the last several weeks. During the week ending on 7th April, EPDM Rubber showcased stagnancy in the market, while Halo Butyl rubber and Polybutadiene Rubber prices plunged. Ongoing Economic headwinds have been backing up the bearish market sentiments for Elastomers. However, as per seasonal trends, the Elastomer industry showcases improved market sentiments in the Q2 of 2023. Market experts have been discussing the outlook of Elastomers and whether there is still a chance for the industry to resurge during April.

The market momentum of the automotive and construction industries primarily impacts Elastomers. However, as these industries have been showing sluggish market performances owing to increased interest rates, the prices of Elastomers have been plunging. However, According to Cox Automotive's analysis of credit application data from March, auto loan interest rates have increased significantly. According to Jonathan Smoke, chief economist at Cox, interest rates on loans for second-hand cars increased by more than three-quarters of the percentage points in a single month. There was a little increase in the cost of new car loans as well. The auto market will face some difficulties, according to Mr. Smoke. The approval rates have not decreased dramatically, which is a bright spot.

Furthermore, Big loans that were beyond $700,000 or $1 million, depending on the market, were already getting more expensive in the residential real estate sector. The Mortgage Bankers Association's top economist, Michael Fratantoni, has recently heard from bankers that deposit outflows following Silicon Valley Bank's failure mean banks have less space to make and keep such loans. He still hopes that the consequences will not be severe: Since investors anticipate fewer Fed rate changes, some mortgage rates have decreased, which, when combined with rising stock prices and a decline in local home values, is helping to offset some banking-related problems.

As per ChemAnalyst anticipations, "After analyzing the U.S. automotive and construction sectors, it is tough to say anything distinctly about the Elastomer market; however, there is a hope that even if the market kept declining for April, it would show clear signs of revival in May and June. Consequently, the price of Elastomers would surge in the next two months of the quarter."