As December 2024 approaches, the global Thermoplastic Elastomer (TPE) market has experienced stability in key regions, including North America and Europe, despite fluctuations in feedstock prices and varied demand conditions. While production costs were impacted by changes in Styrene prices, the sufficient availability of TPE in the market prevented manufacturers from increasing prices.

In the North American market, TPE prices remained stable, largely due to US suppliers preferring to keep prices unchanged and not negotiating. This stability was influenced by a drop in Styrene production in November 2024, with operating rates decreasing from 96% in October to 92%. Despite this reduction in production, TPE supplies across the US remained plentiful. Exports of plastics, including TPE, fell by more than 10% week-on-week through the end of November 2024. Railcar loadings also dropped by approximately 30,263, according to data from the Association of American Railroads, further exerting downward pressure on export prices for TPE, with final prices assessed as USD 6060/MT FOB Chicago

In Europe, TPE prices held steady, although production conditions continued to be impacted by ongoing maintenance turnarounds, particularly with extended holidays across the region. Styrene prices dropped by approximately 8% during the latter half of November 2024 due to oversupply conditions in the market. This was reflected in the fact that, on December 1, a 5,000 MT Styrene cargo was fixed from St. James, Louisiana, to the Amsterdam-Rotterdam-Antwerp region, which arrived in early December. Additionally, a further 8,000 MT Styrene cargo was loaded in Lake Charles for Antwerp, which contributed to a supply glut in the European Styrene market, thereby putting downward pressure on TPE production costs. Demand for TPE remained weak in Europe, with particularly poor performance from the automotive sector, with final prices assessed at USD 4560/MT FOB Antwerp.

Across Southeast Asia, especially in China, TPE prices faced a stable pattern for the last fortnight after experiencing a 1.4% declining trend. The total sample inventory of Styrene at Jiangsu ports stood at 26,900 tons, an increase of 9,900 tons from the previous cycle, marking a 58.24% rise. Styrene inventory reached 17,000 tons, up by 7,000 tons from the previous cycle, a 70% increase. Overall, the Styrene inventory at East China ports was 42,300 tons, up from October 2024 levels, while the inventory at South China ports dropped to 3,800 tons, a decrease from month to month. These factors kept the production of TPE in China in check, though the overall output of China’s Styrene plants was 295,400 tons, down 10,400 tons from the previous period, representing a 3.4% decrease. The plant capacity utilization rate stood at 66.01%, down 2.32% from the previous period, which maintained upward pressure on TPE production in China, with final prices assessed at USD 2083/MT FOB Shanghai

In China, demand for TPE remained relatively strong, driven by a rebound in the new-vehicle market, which saw an 18% year-on-year increase in November 2024, supported by a government scrappage program. This has somewhat sustained domestic consumption of TPE. Despite the uncertainty in the Styrene market and pressure on Chinese suppliers to liquidate inventories, Chinese suppliers have opted to maintain stable prices, preventing any significant fluctuations at the start of December 2024.

Looking forward, global TPE prices are expected to decrease by the end of December 2024 as suppliers across regions try to liquidate inventories before year-end. Demand conditions are anticipated to remain moderate, with suppliers in all regions expecting little recovery in demand from the automotive sector before 2025. With increasing pressure to clear stocks, the market is likely to remain in a delicate balance through the close of the year.