Due to the ongoing military conflict involving the US, Iran, and Israel, coupled with disruptions to shipping routes in the Strait of Hormuz, global energy and chemical raw material markets experienced another sharp fluctuation in mid-May. As core raw materials for rubber floor tiles, EPDM, polyurethane adhesives, and recycled rubber granules remain at historically high prices, leading to significantly increased supply chain uncertainty.
Since the large-scale military conflict broke out in late February 2026, geopolitical tensions in the Middle East have persisted for nearly three months. Despite a brief ceasefire negotiation period, disruptions to shipping through the Strait of Hormuz and operational issues at major Middle Eastern petrochemical bases continue to pose significant systemic risks to global commodity markets in late May.
For the rubber floor tile industry, this crisis is directly impacting three core raw materials: recycled rubber, EPDM, and polyurethane adhesives. As of May 19, cost pressures remain high with no clear signs of immediate relief.
1. High Oil Prices Drive Up Recycling and Transportation Costs
A primary raw material for rubber floor tiles is recycled rubber granules (typically processed from scrap tires), the price of which is closely tied to international oil prices and global shipping logistics.
• Oil price support: According to the latest market data, Brent crude oil closed at $109.26 per barrel on May 15. The World Bank's latest report indicates that the Middle East conflict is expected to drive up energy prices by 24% in 2026. High oil prices not only increase energy consumption during the tire crushing and processing stages, but also significantly raise logistics costs across the entire supply chain, from raw material warehousing to finished product delivery.
• Supply chain disruptions: Global shipping capacity remains tight due to vessel rerouting and schedule delays, keeping container freight rates strong. For businesses that rely on imported rubber powder or export finished goods, logistics costs have become a considerable burden.
2. EPDM: Import Disruptions and Cost Push Drive Prices Near Historic Highs
EPDM is a core material for producing high-end colored rubber floor tiles and elastic underlays. The current conflict has had the most direct impact on the EPDM market:
• Supply-side bottleneck: China's EPDM imports have historically been highly dependent on the Middle East, with Saudi Arabia alone accounting for over 45% of imports at one point. As the conflict zone lies close to major petrochemical production areas (such as Jubail Industrial City) and the strategic Strait of Hormuz, shipments from the Middle East have significantly decreased, creating a clear expectation of market supply tightening.
• Price surge: According to the latest warnings from the German Rubber Industry Association (WDK), synthetic rubber prices, led by EPDM, have risen by more than 20% as of May, with some raw material prices approaching "historic highs" last seen in 2011 and 2022. Traders are generally reluctant to sell, anticipating further price increases.
3. Polyurethane Adhesives: Price Hikes from Chemical Giants Already Felt
Polyurethane adhesives, used to bond rubber granules into resilient flooring, have seen the most dramatic increases in raw material costs during this crisis:
• Tosoh Corporation raised prices on its HDI series products by 150 JPY/kg effective May 1, representing a substantial increase.
• Domestic HDI prices have accumulated a year-to-date increase of 85% as of mid-May.
• In early April, Huntsman announced a uniform 30% increase on polyurethane products for the Chinese market.
As a downstream derivative of the petrochemical industry, polyurethane adhesives have been hit hard by this round of "cost-driven" price increases triggered by geopolitical conflict. For rubber floor tile manufacturers, this means the cost of maintaining strong bonding performance is rising sharply.
Our Response and Commitment
Faced with the current challenging market environment, as a responsible manufacturer, we are under significant cost pressure. While raw material price fluctuations are beyond our control, we always prioritize our customers' interests:
1. Securing supply: We have activated safety stock plans and are actively coordinating with multiple supply chains. Our current inventory of core raw materials is sufficient to ensure normal production and delivery.
2. Price warning: Given the continued upward trend in EPDM and polyurethane adhesive prices, final product prices are facing upward adjustment pressure. We recommend that both existing and new customers make purchases early based on their project schedules to lock in current costs and avoid further price increases.
3. No compromise on quality: Regardless of rising costs, we will never compromise on product durability or our commitment to environmentally friendly recycling technologies.
We will continue to monitor the Middle East situation and raw material market trends closely and keep you informed.
For specific business inquiries and the latest quotes, please contact your dedicated account manager.
