The global elastomer market has been slow-paced due to weak demand from key sectors and cautious supplier actions. While consumption remains muted across major economies, the US market faced disruptions from a severe polar vortex, leading to flight cancellations, road transport issues, and logistical challenges. Despite these setbacks, elastomer pricing witnessed minimal impact, as the elastomers market continues to navigate through supply chain strains.

The US market faced significant disruptions due to a severe snowstorm driven by a polar vortex, which heavily impacted travel and supply chains. Thousands of flights were cancelled, and road transport was severely affected, creating logistical challenges for elastomer producers, potentially leading to production delays and shortages. Over 2,500 flights were grounded, and over 250,000 people lost power across the eastern U.S. Ports limited operations, slowing down the movement of goods, including perishable items, which added strain to the supply chain. The storm's impact on transportation further exacerbated the market's instability, affecting elastomer supply and distribution. However, despite these disruptions, there was minimal impact on elastomer pricing, as the market remained relatively stable in terms of cost. These factors have significantly impacted various overseas exporter's trading activities in the USA, with muted trading and a slowdown in economic activities.

The US elastomers market faced a volatile 2024, impacted by shifting demand across key sectors and various economic challenges. In Q4, the Automotive sector showed positive growth, which offered some relief to elastomer producers, while the Construction sector displayed mixed trends, with muted spending and slower residential real estate activity. In December, rising mortgage rates (6.85%) led to a slowdown in the housing market, reducing both inventory and demand for elastomers used in construction. This subdued performance in housing, coupled with weak demand in industrial sectors, led to a tempered consumption of elastomers like EPDM Rubber, Polyolefin Elastomer, and Fluoroelastomers, which are key in automotive and construction applications.

The aerospace sector, while struggling with production delays at Boeing, experienced a counterbalancing boost from Airbus, which delivered 766 aircraft in 2024, supporting demand for elastomers used in aviation components. Despite challenges like a major strike at Boeing and delays in aircraft production, the overall aerospace sector’s performance helped stabilize elastomer pricing, especially in niche sectors like Fluoroelastomers and HNBR.

On the supply side, the US elastomer market was impacted by favorable feedstock conditions. The supportive Crude Oil market and relatively stable pricing of key feedstocks such as Propylene, Butadiene, and Ethylene helped keep production costs in check, providing some stability to elastomer prices.

In 2024, Europe's elastomer market faced challenges due to a weak economic outlook, which affected sectors like Automotive and Construction. However, the Aerospace sector, led by Airbus, showed strong performance. The market experienced a balancing act between sectoral growth and logistical disruptions, highlighting the importance of supply chain resilience amidst economic uncertainty. Meanwhile, China’s economy showed signs of recovery, with robust performance in the Automobile sector and a recovery phase in the Construction sector. These factors significantly influenced the export market for various commodities in the elastomers segment.

According to ChemAnalyst, the elastomers market is projected to follow a consolidated trend in the coming sessions, with demand from downstream markets remaining flat for now. While concerns persist over the European manufacturing sector, there is cautious optimism for improvement. The outlook for the US and Asian markets, particularly China, is expected to remain positive, which could help drive elastomers demand in the near future.

Additionally, supportive Crude Oil price trends are anticipated to play a key role in stabilizing feedstock costs, ensuring manageable production costs for elastomers. The global automobile market, which significantly impacts elastomer consumption, is expected to show modest growth in 2025. This growth, particularly in key regions like North America and Asia, will likely support the demand for elastomers in vehicle manufacturing, as they are crucial for parts such as tires, seals, and interior components. As demand from the automotive sector picks up, coupled with the overall positive outlook for the US and Asian markets, the elastomers market is poised to maintain a steady trajectory in the upcoming months. However, challenges in the European sector and fluctuations in the global supply chain remain factors to watch.