Hamburg, Germany: In the European market, Ethylene Acrylic Elastomer (AEM) prices experienced a noteworthy 3.5% reduction during July. This decline can be attributed to the substantial decreases in the prices of its primary raw materials, namely ethylene and acrylic acid, which exhibited a steady plunge of 13.2% and 4.8%, respectively, over the same period. The decline in feedstock prices, particularly ethylene and acrylic acid, played a pivotal role in this cost reduction. Hence, the noteworthy reduction in AEM prices can be largely attributed to the significant cut in production costs. By virtue of these reduced production costs, manufacturers of AEM were able to pass on the benefits to consumers, thereby offering more affordable rates for the product in the market.

For several weeks, ethylene and acrylic acid prices declined in the US and European markets. Weak demand and large regional stockpiles are the two main causes of this drop. The macroeconomic environment also offered several difficulties, such as heightened inflationary pressures and ongoing interest rate hikes. These economic obstacles greatly reduced Consumers' purchasing power, making purchases challenging.

Europe's automobile sector kept up its strong performance. Between January and June, Light-Commercial Vehicles (LCVs) sales under 3.5 tonnes increased by 11.2% in the European Union. Spain and Germany were the main propellers of this rise, where sales significantly increased. Sales of light commercial vehicles increased noticeably in Germany by 15.5% and Spain by 16.6%. With a modest increase in LCV sales of 3.6% in France, the overall development was also aided by her country. The automotive industry performed admirably throughout July. The prices of AEM decreased throughout the month, despite the automobile industry's impressive performance.

AEM prices are on the decline, and the automotive sector is performing well, which is encouraging for the market. Given the continued high demand for light-commercial cars, manufacturers in the automotive industry may profit from the lower cost of AEM. Due to continuous improvements in the European car market, experts forecast that demand for AEM in the automotive industry will remain stable. Nevertheless, variables like feedstock pricing, the availability of raw materials, and the general state of the economy will have an impact on market dynamics. Players in the AEM sector are actively watching these variables to modify their business plans and stay competitive in the burgeoning European market. AEM prices are falling, and the thriving automobile industry creates new opportunities for growth and market expansion in the region.