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Upstream dynamics continued to amplify cost pressures on the EPDM Rubber. Rising ethylene and propylene costs reduced downstream flexibility and increased production expenses, while war-related disruptions to naphtha and crude benchmarks further elevated feedstock-driven costs; by contrast, falling natural gas prices provided partial relief for U.S. on-purpose ethylene producers. Gulf Coast producers continued operating near nameplate capacity, but tightening export availability alongside higher freight and war-risk insurance costs narrowed arbitrage opportunities.

US鈥揑ran tensions and disruption in the Strait of Hormuz further constrained global naphtha flows, directly impacting ethylene and propylene production economics. Reduced availability and higher logistics risk led to selective run cuts in Asia, tightening spot supply across polymer chains which simultaneously affected the EPDM Rubber pricing. In contrast, U.S. Gulf Coast operations remained comparatively stable, though global benchmark strength persisted. These combined pressures reinforced firmer ethylene and propylene pricing, ultimately transmitting cost...