As of the third week of April, the European market for Polyolefin Elastomer (POE) has maintained stability in prices. This steadiness in the POE price is primarily attributed to the lack of significant demand from market participants, leading to minimal activity in inventories accumulation or destocking. However, in the feedstock market, the continued uptrend in Ethylene prices has counteracted any potential upward movement in POE prices. While in the US market, the price continued to exhibit its downward trend till this week. Looking at the long-term price action, POE prices are experiencing a downtrend, indicating that market participants are not actively engaging in inventories accumulation. This lack of enthusiasm has resulted in subdued activity, with no significant changes in the supply and demand ratio.

In the European market, especially in Germany, the price of Polyolefin Elastomer (POE) octene based has remained stable at 2970 USD/MT FD-Hamburg. Despite declines in the construction and manufacturing sectors across Europe, the automotive industry remains robust. However, there is an overall downward trend due to destocking by suppliers. This price stability is largely influenced by pricing observed from major exporters, particularly in Spain. The European Polyolefin Elastomer market is countering the price trend of its feedstock, Ethylene. Economic performance in France and Germany is trailing, while the UK is experiencing moderate success. Conversely, Spain and Italy are showing more positive indicators. European businesses are facing challenges such as high inflation and borrowing costs due to elevated interest rates, leading to delays or cancellations of projects.

The recent decrease in Polyolefin Elastomer (POE) prices, despite promising prospects in the US automobile and construction sectors, is primarily due to ongoing destocking activities by suppliers. Despite favorable conditions in the feedstock market, there is an excess inventory situation, leading to downward pressure on bids. POE is currently priced at USD 2980 USD/MT FOB-New Orleans, representing a 0.99% decrease, indicating active market dynamics. Although demand remains strong in key sectors, the surplus inventory is driving prices downward. This highlights the importance of effective inventory management strategies in response to evolving market conditions, particularly as suppliers adjust pricing strategies to manage surplus inventories effectively.

As per the ChemAnalyst’s anticipations, the price of the Polyolefin Elastomer (POE) is expected to showcase bearish trend in the upcoming sessions in the Europe as well as in the US market. This anticipation is majorly attributed to the continuity in the downward trend which will result into lack of biddings for the POE by the market participants. The subdued demand from the downstream market in the Europe is also expected to hamper the price of POE. These factors will significantly play a key role in following the pricing dynamics of the POE in near term.