The cost of Ethylene Acrylic Elastomer experienced an upward trajectory in the US market, witnessing a rise of 1.21% to reach 16680 USD/MT in December 2023. This increase was influenced by the scarcity of global Ethylene Acrylic Elastomer manufacturers and a disparity in demand and supply, particularly evident in disruptions across the Asian and European markets. Consequently, the price of Ethylene Acrylic Elastomers continued its upward trend throughout December.

In relation to the downstream market for Ethylene Acrylic Elastomer, the United States automotive sector saw a 3.2% month-on-month rise, reaching 15.8m units (yearly) in December 2023. Simultaneously, the Construction sector indices, which also influence the Electrical Wire and Cable segment, demonstrated strong performance during this month. Despite these positive indicators, major industry player Maersk, a significant contributor to global trade, has issued warnings about potential disruptions. The mixed demand for Ethylene Acrylic Elastomer from major importing countries, coupled with disruptions in the supply and demand chain, has contributed to a surge in prices this month.

As of December, there has been a moderate supply of Ethylene Acrylic Elastomer globally. However, recent tensions in the Red Sea have added a new layer of uncertainty to global shipping, affecting the transportation of essential goods. The industry now faces the risk of significant disruptions, encompassing ongoing conflicts and environmental factors like droughts that impact vital routes, such as the Panama Canal. These repercussions are anticipated to have a prolonged impact throughout the year, influencing the intricate schedules of large container ships, fuel tankers, and other vessels engaged in the transportation of commodities. This situation underscores the potential for disruptions in the global shipping industry, emphasizing the interconnectedness of supply chains for Ethylene Acrylic Elastomers and the susceptibility of logistical processes to both geopolitical tensions and environmental challenges.

In the European market, the economic contraction within the European Union has had a notable impact on the downstream Automobile and Construction sectors this month. Meanwhile, major consumers from the Asian market, such as India, have experienced growth in the Construction sector. However, the Automobile sector in India has shown a decline in numbers as of December, indicating a mixed demand for Ethylene Acrylic Elastomers in the global market. The contrasting trends in these key sectors suggest a nuanced and varied demand landscape for Ethylene Acrylic Elastomers on the global stage.

According to ChemAnalyst predictions, the price of Ethylene Acrylic Elastomer is expected to experience a bullish trend in the market. This anticipation is grounded in the forecast of a significant increase in global shipping indices prices, causing substantial disruptions in the supply chain and potentially leading to port congestion in the upcoming sessions. Given that the US is a key player in the Ethylene Acrylic Elastomer market, the supply chain stands out as a major concern, despite in the context of mixed demand in the near future.