Hamburg (Germany): In the global market, the price of Ethylene Acrylic Elastomer (AEM) remained stable this month. This stability coincided with balanced demand and steady inventory accumulations. There was no significant change in downstream market demand, and sufficient inventory availability resulted in minimal bidding activity from market participants. These factors played a pivotal role in maintaining stable AEM prices globally.

In Germany, AEM prices have also remained steady this month, largely due to stable pricing from a major USA manufacturer. This contrasts sharply with local ethylene prices, which have declined by 3.0% as market participants continue to destock. Acrylic Acid prices saw a modest decrease of 1.54% in June 2024. The automotive sector experienced 297,329 new passenger car registrations in June, up 6.1% year-on-year, with total sales from January to June reaching 1,471,641 units, up 5.4%. However, weak demand across construction supply chains led to a record improvement in lead times for building materials and products, as constructors reduced their purchasing activity in June. In the aerospace market, no major orders were placed, but Airbus delivered approximately 67 airplanes in June, totaling around 323 for the first half of the year, a 2% increase year-on-year. These mixed demand sentiments from core sectors have contributed to balanced prices for AEM in the European market.

In the USA, AEM prices have also remained steady this month due to stable pricing from a major USA manufacturer. Ethylene prices increased by 14.1% due to significant stockpiling by market participants, while Acrylic Acid prices decreased by 1.1%. The downstream automobile market saw total sales of 1,341,273 units in June, a 7.15% decrease from the previous month and a 3.22% decrease from the previous year. In the aerospace market, Boeing delivered 157 commercial airplanes and recorded 611 net orders by May 2024, with an expected 43 aircraft deliveries in June, including 34 737 MAX models. In June 2024, the Federal Reserve kept the fed funds target range unchanged at 5.25% to 5.50% for the seventh consecutive meeting. The PMI unexpectedly declined in June. The stable AEM prices in the US market result from balanced supply and consistent downstream demand.

According to ChemAnalyst, AEM prices are expected to exhibit bullishness in the upcoming weeks. This anticipated increase in AEM prices is primarily linked to expected positivity in manufacturing activities, which is set to boost AEM market demand. Additionally, prolonged supplier delivery times due to port congestion are expected to drive up freight charges, further disrupting the supply chain. The continuous rise in ethylene prices is also expected to elevate AEM production costs.