For the Quarter Ending September 2024
North America
In Q3 2024, the North American region experienced a significant decline in Ethylene Acrylic Elastomer (AEM) prices, driven by several key factors. A balance in supply, coupled with diminished demand from crucial sectors such as aerospace, particularly due to disruptions in Boeing’s production and airline safety concerns, exerted downward pressure on prices.
These issues negatively impacted both orders and deliveries during the period, resulting in reduced AEM consumption. Conversely, the automotive sector displayed moderate performance, providing some support to overall demand. In the USA, where the most notable price fluctuations occurred, the pricing landscape followed a broader decreasing trend. Seasonal fluctuations and the influence of global economic conditions contributed to these price movements.
The quarter saw a 0.5% increase from the previous quarter, continuing a consistent downward trajectory, while reflecting a 1.71% decrease compared to the same quarter last year. At the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 FOB USGC in the USA was USD 13,350/MT, highlighting the prevailing negative sentiment in the market.
APAC
During Q3 2024, the Ethylene Acrylic Elastomer (AEM) market in the APAC region saw stable prices, with India reflecting the most notable price changes. Several factors influenced market prices, including balanced supply and demand dynamics and the overall importing price dynamics from the major exporter in the US market. Major economies in Asia, particularly China, Japan, and India, experienced positive demand from the downstream markets, especially in the automotive and aerospace sectors, which significantly supported overall AEM demand in the asian region. The market recorded a slight 0.64% increase compared to the previous quarter, alongside a 0.47% decrease from the same quarter last year, indicating a steady pricing environment. Seasonal trends and industry correlations helped maintain price stability throughout the quarter. Although notable plant shutdowns led to temporary supply chain disruptions, they did not significantly affect overall market stability. By the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR JNPT in India reached USD 1,176.68/MT, underscoring the prevailing stable pricing sentiment in the region.
Europe
In Q3 2024, the pricing environment for Ethylene Acrylic Elastomer (AEM) in Europe experienced a consistent decline of 0.70%. This decrease was mainly attributed to reduced demand in key sectors like automotive, coupled with ongoing global economic uncertainties. Despite this, positive demand from the aerospace sector continued to bolster overall AEM consumption which marked as the key factor in balancing the pricing dynamics of the AEM. Furthermore, supply chain disruptions—caused by tensions along shipping routes and lower supplier performance—added to the negative pricing trend. The Netherlands saw the most significant price changes during the quarter. Overall, the pricing trend displayed a negative correlation with earlier periods, underscoring the challenging market conditions. The quarter recorded a 0.47% price increase compared to the previous quarter, but a decrease of 0.82% when compared to the same quarter last year. By the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) in the Netherlands reached USD 14,100/MT CFR Rotterdam, marking the culmination of the modest downward pricing sentiment throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in North America experienced a downward pricing trend, primarily driven by several critical factors. A significant surge in feedstock prices, notably Ethylene and Acrylic Acid, placed marked pressure on AEM production costs. This quarter saw an increased demand from the automotive sector, which exhibited robust growth despite some contractions in aerospace. Furthermore, supply constraints due to ongoing Long Buildup activities among suppliers exacerbated the price increases.
The Panama Canal's draught restrictions also contributed to supply chain disruptions, adding to the logistical challenges faced by the market. Seasonal factors played a role, with Q2 typically experiencing elevated demand due to increased manufacturing activities. The price trend for the quarter showed an overall increase when compared to the previous quarter, which had recorded a decline of 1.8%.
Notably, the quarter concluded with the price of Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 FOB USGC in the USA reaching USD 13400/MT. This reflects a positive pricing environment throughout Q2 2024, marked by consistent increases influenced by feedstock costs, supply chain dynamics, and robust downstream demand, particularly from the automotive sector.
APAC
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in the Asia-Pacific (APAC) region experienced a marginal price decrease. The continuous climb in Ethylene prices, driven by Long Buildup activities, exacerbated production costs for AEM, thereby influencing the overall market pricing of AEM from April to June. The supply chain encountered disruptions due to tight inventories and supplier activities aimed at inventory accumulation, which also played a crucial role in driving prices higher. Focusing on India, the market witnessed the most significant price changes within the APAC region. The Indian market's pricing dynamics were heavily influenced by robust downstream demand from the automobile and aerospace sectors. The surge in manufacturing activities and positive business confidence contributed to the rising demand for AEM. The percentage change from the previous quarter was recorded at -2%, indicating a reversal trend in Q2, while the price comparison between the first and second half of the quarter showed a 1% increase, underscoring the consistent upward trajectory. The overall trends in India were marked by a positive pricing environment, reflecting strong market fundamentals and heightened demand pressures. As of the quarter's end, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR JNPT in India stood at USD 1175013/MT, indicating a robust market response to the prevailing economic conditions.
Europe
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in Europe experienced notable price decreases, driven by several significant factors. The downward trend in AEM pricing was primarily influenced by lower demand from the automotive and other manufacturing sectors in the European market, coupled with increased freight charges and higher feedstock costs. Notably, the adequate supply conditions due to higher inventory availability and logistical bottlenecks further exacerbated the price fluctuations. The price of AEM in Germany saw a notable decrease compared to the first half of the quarter, evidencing a 2% decrease. In contrast with the lower economic performance the Aerospace sector demand has supported the price of the AEM to some extent from falling further. Furthermore, the market faced no disruptions due to occasional plant shutdowns in the respective period. Despite a -2% decrease from the previous quarter in 2024, the pricing sentiment remained largely positive throughout Q2. The quarter-ending price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR Hamburg in Germany was USD 14190/MT.
For the Quarter Ending March 2024
North America
In the USA, the Ethylene Acrylic Elastomer (AEM) market witnessed an upward price trend amidst sectoral shifts. The automotive sector displayed resilience, evidenced by the sale of 3,797,420 units, signaling 2.83% decline from previous quarter but increasing month on month growth. Conversely, the aerospace sector faced challenges, notably with Boeing's decision to limit 737 productions due to heightened regulatory scrutiny and safety concerns.
The decline in Boeing's 737 MAX jetliner production adversely affected the aerospace industry, exacerbated by the Federal Aviation Administration's production cap and ongoing safety issues. However, the construction sector continued to outperform in the respective quarter. Despite these challenges, the AEM Rubber market in the USA experienced a price uptick, reaching 9660 USD/MT FOB-USGC, marking a significant 0.11% increment in Q1 2024 from Q4 2023.
This price incline is attributed to various factors, including steady demand from the automotive sector and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market. Additionally, support from overseas markets like Mexico, Brazil, and Canada further bolstered the price trend of AEM Rubber in the respective quarter, highlighting the market's resilience amidst sectoral challenges.
APAC
The AEM Rubber market in the APAC region witnessed an inclining phase in the current quarter of 2024 (Q1) from January to March. The overall market situation was positive, with adequate supply in the downstream market. However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period. Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions. Totally 6717000 Units of Automobile sold in this quarter in the Chinese market which is comparatively lower as compared to the previous quarter. However the aerospace market is also underperforming in the Chinese market. However in the Indian market, the activeness in the Indian government witnessed in the Aerospace sector. Hindustan Aeronautics Ltd the Indian Aerospace company as of March 31, 2024, has huge order books, with additional major orders expected during FY 2024-25. Japan on the other hand replicated the overall Asian market scenario being the major exporter of the AEM Rubber in the Asian market. As of this quarter ending the price of the AEM Rubber halted at 17060 USD/MT CFR-JNPT marking an increment of 0.10% in this quarter.
Europe
In the European market the price of the AEM Rubber witnessed a challenging scenario in Q1 2024. From the previous quarter the price has shown drastic fall which has resulted into a retracement from the supplier’s end. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors which has not impacted majorly in the price trend in this quarter. However, amidst these factors, the downstream automobile market demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region. Nevertheless, in the Aerospace sector market total 142 deliveries to 45 customers given from the major Aircraft maker Airbus in this quarter. The safety issue in the USA Aircraft maker Boeing’s aircraft has significantly impacted positively on the European aircraft maker Airbus market which has thereby influenced the demand for the various commodities including AEM Rubber in the European market.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Ethylene Acrylic Elastomer (AEM) market witnessed an upward trend. Despite overall market stability, various factors influenced pricing dynamics. Notably, the US automotive industry displayed signs of recovery, marked by robust new vehicle sales and a rebound in the construction sector.
This generated a moderate to high demand for Ethylene Acrylic Elastomer in the US market. Conversely, challenges faced by the European automotive and construction industries resulted in comparatively lower to moderate demand for Ethylene Acrylic Elastomer in that region. The US automobile sector experienced a notable month-on-month increase, reaching 15.8 million units (annualized), and the Construction sector, with implications for Electrical Wire and Cable, demonstrated robust performance.
Despite the mixed demand from major importing countries and disruptions in the supply and demand chain, prices surged. Throughout the quarter, the supply of Ethylene Acrylic Elastomer remained at a moderate level. Additionally, the market encountered vessel draft limitations in the Panama Canal, leading to congestion and shipping delays. In the US market, the price of Ethylene Acrylic Elastomer concluded at USD 16680/MT FOB USGC, marking an increase of 1.70%.
APAC
As the fourth quarter of 2023 concluded, Ethylene Acrylic Elastomer (AEM) prices in the Asia-Pacific (APAC) region demonstrated a bullish trend, primarily influenced by a moderate supply despite substantial demand from the automotive sector across Asian countries. The limited number of producers in the Ethylene Acrylic Elastomer market has consistently made the supply chain a focal point for discussions, contributing to the continuous rise in prices. In APAC, particularly in the Indian market, robust sales were experienced in this quarter, with the construction sector outperforming, especially in December. Suppliers concurrently increased their ex-quotation prices this month, leading to the upsurge in the price of Ethylene Acrylic Elastomer. The supply of Ethylene Acrylic Elastomer in the market consistently remained at a low to moderate level, influenced by lower industrial production and a reduced number of exporters, contributing to the ongoing accumulation of inventories. This strategic accumulation aims to meet anticipated future demands. Disruptions in overall shipping routes have affected the supply and demand ratio in the market. As of this quarter's conclusion, the price of Ethylene Acrylic Elastomer stood at 14432 USD/MT CFR-JNPT, marking an incline of 4.27%.
Europe
As the fourth quarter of 2023 concluded, Ethylene Acrylic Elastomer (AEM) prices in Europe displayed a bullish trend, primarily driven by low supply and subdued demand from the automotive sector. The continuous decline in crude oil prices aided in managing production costs from major producing countries. However, heightened geopolitical tensions across the Red Sea significantly contributed to increased importing costs during the period. Major shipping companies rerouting their routes led to port congestion this quarter, adding to the challenges. Despite maintaining a well-balanced supply and demand, resulting in limited material availability, the market experienced minimal price fluctuations throughout the quarter. Germany's long-term interest rates declined to stabilize retailer consumption, impacting not only the automotive sector but also various other industries. The anticipated rise in energy and other utilities costs globally during the winter, coupled with the overall economic contraction in Europe and lower inventory stockpiles, resulted in a price increase this quarter. The Ethylene Acrylic Elastomer price at the end of this quarter stood at 17270 USD/MT CFR-Hamburg, marking an incline of 1.64%.
For the Quarter Ending September 2023
North America
The prices of Ethylene Acrylic Elastomer (AEM) plunged in the first month of quarter 3, only to showcase a marginal uptick in August and stabilized in the last month of the quarter. Despite the automotive industry's continuous growth, with sales rising by over 20% in June in the domestic market and by more than 17% in Europe, the price of Ethylene Acrylic Elastomer (AEM) experienced a significant decline in the USA market in July. This was mainly driven by reduced upstream costs, as both feedstock Ethylene and Acrylic Acid prices slumped throughout the month. Consequently, the production cost of AEM decreased, leading to a notable drop in its market value. Furthermore, in July, the manufacturing sector in the US showed signs of stabilization at weaker levels, primarily due to a gradual improvement in new orders. Nevertheless, factory employment reached a three-year low, indicating an acceleration in layoffs. This stabilization in the manufacturing sector further contributed to the decrease in the price of AEM. However, the Purchasing Managers' Index (PMI) for the United States presented a noteworthy shift, falling from 49 in July to 47.9 in August. This decline in the country's industrial activity had a direct impact on the supply chain of end-use commodities like AEM. Consequently, it caused a marginal uptick in AEM prices, highlighting the intricate relationship between economic indicators and market dynamics. Moreover, the Ethylene Acrylic Elastomer (AEM) prices remained stagnant in the US market during September, backed by contradictory demand sentiments in the domestic and international downstream industries. The effects of strong market demand from the domestic automotive and construction industries were efficiently countered by the lack of demand from the European automotive and construction industries.
APAC
Unlike North America, the Asia-Pacific region witnessed a consistent decline in Ethylene Acrylic Elastomer (AEM) prices during the third quarter of 2023. In the third quarter of 2023, the Asian new vehicle market experienced significant growth, mainly due to the ongoing recovery from the COVID-19 lockdowns that began to ease in the latter part of the previous year. This recovery was further facilitated by an improved supply of semiconductors, allowing automotive manufacturers to increase production and reduce order backlogs. Despite strong demand from the automotive industry, the prices of AEM in the Asian market have been consistently decreasing. This price decline can be attributed to several factors, including a simultaneous drop in the prices of the key raw material, Ethylene, and increased competition in the market. These factors have combined to reshape the pricing dynamics in the AEM sector significantly. The reduced cost of Ethylene has directly impacted manufacturing expenses, necessitating a downward adjustment in the prices of the final products. Additionally, heightened competition has led manufacturers to strategically lower their prices to maintain their competitiveness in the industry.
Europe
Like the Asia-pacific region, the price of AEM fell consistently in the European market during the 3rd quarter of the year 2023. The European AEM market saw a decline, primarily attributed to a substantial downturn in the construction industry across the Eurozone. This downturn marked the most significant drop of the year. The construction slowdown was evident in the Purchasing Managers' Index (PMI) for the Eurozone construction sector, which dipped slightly from 43.5 to 43.4 in August, indicating a noteworthy reduction in industry activity. This decline in construction activity had a ripple effect, resulting in reduced demand for AEM not only in the European market but also affecting the overall demand for this product in the global market. Additionally, despite a recent period of relative price stability in Ethylene and Propylene feedstock in Europe during August and September, the continued downward price trend observed throughout July continues to have a substantial impact on the production costs associated with AEM.
For the Quarter Ending June 2023
North America
For the Quarter ending June 2023, Ethylene Acrylic Elastomer (AEM) prices showed a consistent increase in the USA market, driven by the strong market performance of the automotive industry. Concerns about the impact of rising interest rates on consumer spending remained high, but recent data suggests that consumers were comfortable spending large sums of money. The automotive industry faced acute semiconductor shortages in the first half of the year amid supply concerns that delayed mass assembly until the situation stabilized in the second half of the year. The combination of better supply and rising consumer demand led to strong growth into the second fiscal quarter. External factors such as the bankruptcy of two large financial institutions in the last quarter of the year had a negative effect on the second quarter of the year, but a temporary suspension of the national debt ceiling prevented a recession. The consumer price index in the United States increased by 0.1% in May after a significant rise in April. Consequently, the assessed price of Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 was USD 14100/MT FOB USGC in June.
APAC
Ethylene acrylic elastomer prices were initially stagnant in Asian markets but started to rise in the second half of Q2 2023. Ethylene Acrylic Elastomer (AEM) prices have continued their upward trend in recent months amid the ever-increasing demands of the downstream automotive industry in the Indian market. Additionally, dealers were being manipulated to raise prices even higher as inventories in the region dwindled due to rising consumer spending rates. In addition, as the region's Purchasing Managers Index (PMI) continues to rise and the demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) continues to grow, foreign investors are expected to enter the market to strengthen the auto industry further of investments are attracted to the region. In the Indian market, ethylene acrylic elastomer (AEM) prices rose in June, supported by expensive imports, and increased downstream demand. India, an import-driven market, relies on US exports to meet the demand for AEM, and as its AEM prices in the US market soared, Indian suppliers sourced their products at higher prices. According to the Federation of Automobile Dealers Associations (FADA), Indian auto retail sales rose 10% in June compared to the same month last year. As the Indian automotive industry performed well in the market, the consumption of AEMs increased, which ultimately led to increased demand. Hence, the assessed price of Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 was USD 15246.26/MT CFR JNPT in India in June 2023.
Europe
Like the Asia-Pacific region, European market Ethylene Acrylic Elastomer (AEM) prices were initially stagnant but started to rise in the second half of Q2-2023. Prices of ethylene acrylic elastomer (AEM) in the German market remained largely stable in April on the back of constant import costs. The German ethylene acrylic elastomer market is an import-driven market and relies on US imports to meet AEM requirements. AEM's price in the US market was stable, so they procured it in Germany at a similar price. Ethylene Acrylic Elastomer (AEM) prices rose significantly in the German market in May, supported by expensive imports and increased demand in the domestic market. Moreover, the German auto industry rebounded strongly in May, with sales up 19.2% year-on-year. With the increase in German automotive industry sales and industrial production, the consumption of AEM improved, and its market value increased significantly. According to the Federal Transport Administration (KBA), the number of new passenger car registrations increased by 24.8% year-on-year. As the German automotive industry performed well in the market, AEM consumption increased, which ultimately led to increased demand. Hence, the assessed price of Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 was USD 15064/MT CFR Hamburg in June.
For the Quarter Ending March 2023
North America
Ethylene Acrylic Elastomer (AEM) has shown mixed sentiments in the USA market during the first quarter of 2023. In the first two months of 2023, Ethylene Acrylic Elastomers (AEM) prices have continued in the North direction. The automotive industry has gradually rebounded, which has led to bullish sentiments across the market. Overall, demand from the downstream automotive industry has risen, which strengthened the prices of Ethylene Acrylic Elastomer (AEM) in the domestic market. In addition, the input cost pressure also started to ease with gradual improvement in economic conditions across the country. Although, towards the end of Q1, Ethylene Acrylic Elastomer (AEM) prices dropped as the demand outlook for the product remained on the lower edge along with weak productional capacity. In addition, USA manufacturing activity slumped in March due to tighter credit conditions. The purchasing manager's index dropped from 47.7 to 46.3 in March. Furthermore, Suppliers had enough to cater to the domestic and overseas market demand. Meanwhile, growing fears of a recession due to the failure of key banks in America coupled with aggressive rate hikes of central banks to tame inflation have hampered the market growth of Ethylene Acrylic Elastomer. Thus, prices of Ethylene Acrylic Elastomer (AEM) FOB USGC (MV 29) were settled at USD 14854/MT during March 2023.
Asia- Pacific
Ethylene Acrylic Elastomer (AEM) prices have continued their bullish rally in the Japanese market during the first quarter of 2023 as the market participants restocked the material available in the domestic market. Although, demand from the downstream automotive industry has improved at a slower pace. In addition, feedstock Ethylene and Methyl Acrylate prices have fluctuated in a narrow range. In addition, high inflationary pressure has further promoted the increased prices of Ethylene Acrylic Elastomer (AEM) in the domestic market. However, towards the end of Q1, demand for Ethylene Acrylic Elastomer (AEM) rose as the automotive industries resumed to pick up the pace in the domestic market, thus strengthening the overall market dynamics of Ethylene Acrylic Elastomer (AEM). Furthermore, as per the market sources, new vehicle sales in Japan increased by 11.6% to 572,494 units. Sales increased due to the easing supply shortages of semiconductors and parts. Therefore, prices of Ethylene Acrylic Elastomer CFR JNPT (MV 29) were assessed at USD 15182/MT during March 2023.
Europe
Ethylene Acrylic Elastomer (AEM) prices have continued to increase in the European market during the first quarter of 2023 as market participants restocked the material available in the regional market. However, demand from the downstream automotive and construction sectors has remained stable in the region. Operating rates have remained steady due to stagnant consumption from the downstream industries. Feedstock Ethylene and Methyl Acrylate prices have also inched higher, which resulted in the high production cost of Ethylene Acrylic Elastomer (AEM) in the region. At the same time, imports from Asia have turned costly as prices increased in the Asia market, which contributed to the product's high prices. In addition, ragging inflationary pressure and tight monetary condition across the European market have further boosted the prices of Ethylene Acrylic Elastomer (AEM)in the region. Thus, prices of Ethylene Acrylic Elastomer (AEM) CFR Hamburg were settled at USD 14996/MT (MV 29) during March 2023.
For the Quarter Ending December 2022
North America
Ethylene Acrylic Elastomer (AEM) prices have witnessed an upward trend in the USA market throughout the fourth quarter of 2022 owing to the high inflationary pressure and volatile energy prices. In terms of domestic production, operating rates remained under check due to the stagnant consumption from the downstream industries. Demand from the downstream automotive and other competitive industries has improved slightly in the domestic market, while the limited material availability led to the price increase in the domestic market. On the other hand, Demand from the overseas market has remained on the stable to weak side as the West faced soft buying sentiments. Hence, prices of Ethylene Acrylic Elastomer FOB USGC were settled at USD 11366/MT (MV 16.5-18.5) during December 2022.
Asia-Pacific
Ethylene Acrylic Elastomer (AEM) prices have shown a fluctuating trend in the Indian market during the fourth quarter of 2022. During the first month, Ethylene Acrylic Elastomer (AEM) prices dropped due to sufficient material availability and weak Demand from the downstream automotive industry. Although, during the last two months of the quarter, Ethylene Acrylic Elastomer (AEM) prices have rebounded. Domestic production rates have improved in the wake of improved buying sentiment. On the other hand, Demand from the downstream automotive and other competitive industries has improved marginally in the domestic market. Meanwhile, Demand from the overseas market has also been stable, while inadequate inventory level has forced the manufacturer to raise their price quotation. As a result, prices of Ethylene Acrylic Elastomer (AEM) CFR JNPT were settled at USD 13413/MT (MV 29) during December.
Europe
Ethylene Acrylic Elastomer (AEM) has witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first month, Ethylene Acrylic Elastomer (AEM) prices decreased owing to the sufficient inventory level and weak demand dynamics. Feedstock Ethylene and Acrylic monomer prices dropped, resulting in the low production cost of the Ethylene Acrylic Elastomer. However, during the last two months, Ethylene Acrylic Elastomer (AEM) prices increased. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. However, the market transactions have operated at low levels as the inflationary pressures have impacted the downstream Demand. Meanwhile, imports from the USA and Asia faced port congestion in key major trading ports of Rotterdam, Amsterdam, and Antwerp. Meanwhile, Germany faced labor unrest, and logistics remained under pressure, which restricted the material available in the regional market. In conclusion, prices of Ethylene Acrylic Elastomer (AEM) CFR Hamburg were settled at USD 13925/MT (MV 29) during December.
For the Quarter Ending September 2022
North America
Ethylene Acrylic Elastomer (AEM) prices have gained a downward trend in the US Market throughout the third quarter of 2022, supported by the sufficient inventory level coupled with weak demand. The speculation of recession across the US market has dampened the demand from the downstream automotive industries. In addition, feedstock Ethylene and Methyl Acrylate have further dropped, which supported the Ethylene Acrylic Elastomer (AEM) to follow the downtrend in the regional market. Furthermore, the ease in the upstream Natural gas prices has reduced the production costs of Ethylene Acrylic Elastomer across the regional market. Also, the downstream market players have reported large stockpiles of unsold inventory, resulting in a cheaper spot market for Ethylene Acrylic Elastomer (AEM). Thus, in the USA, prices of Ethylene Acrylic Elastomer FOB USGC were assessed at USD 9838/MT (MV 16.5-18.5) during August 2022.
Asia- Pacific
Throughout the third quarter of 2022, Ethylene Acrylic Elastomer (AEM) prices have continued to fall in the Asian market. The latest decline in the price was due to the sufficient availability of the product in the regional market. High inflation has slumped the demand from the downstream automotive industries. At the same, demand from the overseas market, mainly from China, has reduced due to the uncertainties. In addition, Japan's manufacturing activity has persistently dropped, and PMI has shifted from 51.5 to 50.8 in September, compared with August. Also, the inflows of new orders have plunged due to the low inquiries of the Ethylene Acrylic Elastomer. Thus, in India, Ethylene Acrylic Elastomer (AEM) CFR JNPT (MV 16.5-18.5) prices were assessed at USD 9403/MT during September 2022.
Europe
Ethylene Acrylic Elastomer (AEM) has continued its bearish rally in the European market throughout the third quarter of 2022 owing to the low cost of the raw material Ethylene and Methyl Acrylate prices. Further, due to commodity inflation, market dullness is occurring in the market as the consumers want to invest only in basic needs. In addition, domestic production costs remain elevated amid mounting energy and operating costs, resulting in weak output rates. Despite this, steady flows of cheaper imports from Asia and the North American region have led to the price decline in Europe. On the other side, the European region has had logistics limitations as port congestion in Hamburg and Bremerhaven and dropping Rhine levels have threatened European supply chains. Meanwhile, Europe continued to face labor unrest, and logistics remained under pressure; hence, as a result, in Germany, prices of Ethylene Acrylic Elastomer (AEM) CFR Hamburg were quoted at USD 9543/MT (MV 16.5-18.5) with a month-on-month decline of around 4.3% during September.
For the Quarter Ending June 2022
North America
In North America, prices of Ethylene Acrylic Elastomer (AEM) have observed stagnancy during the second quarter of 2022 on the back of the firm cost pressure coupled with the stable to weak demand from the regional market. In addition, raw material Ethylene and Acrylic monomer prices have remained steady in the regional market as crude oil prices observed limited to no volatility despite skyrocketing Energy cost prices in the North American market. Furthermore, Ethylene Acrylic Elastomer (AEM) manufacturers have kept the operating rates in stable ranges; meanwhile, market participants have reported a conservative procurement approach amid growing uncertainty around the downstream demand. Also, the automotive industry has witnessed stagnancy in growth and, consequently, has kept the consumption rates in the weak to the stable range. As a ripple effect, prices of Ethylene Acrylic Elastomer (AEM) FOB UGSC were settled at around USD 11002/MT (MV 29) (FOB USGC) with an increment of nearly 4.73% during June.
Asia- Pacific
During the second quarter of 2022, the supplies of Ethylene Acrylic Elastomer (AEM) remained balanced as operating rates at several manufacturing plants picked up to meet the downstream end-use demand, but some constraints were witnessed amid the monsoon season in India. A surge in consumption of automotive lubricants was seen positively impacting the Ethylene Acrylic Elastomer (AEM) in India. Demand was consistent from the downstream automotive sector, and better offtakes were reported with the rebound in the automotive sector. Additionally, volatile crude oil has impacted the raw material cost, has the other factor for stable prices. As a ripple effect, prices of Ethylene Acrylic Elastomer (AEM) CFR JNPT were assessed at around USD 10989/MT (MV 20) CFR JNPT during June.
Europe
In contrast to the last quarter of 2022, Ethylene Acrylic Elastomer (AEM) showed a stable market sentiment in Europe during the second quarter of 2022. In addition, the availability of feed with the manufacturers to cater to the offtakes in the domestic market caused market dullness in Germany. Furthermore, volatile crude oil has impacted the raw material cost, has the other factor for stable prices. Also, Demand for Ethylene Acrylic Elastomer (AEM) in the automotive industry has remained consistent. However, the tight supply of raw materials, labour shortage, and trade route disruption amidst the Russia-Ukraine war have impacted the Ethylene Acrylic Elastomer (AEM) prices across the regional market. As a result, in Germany, prices of Ethylene Acrylic Elastomer CFR Hamburg (MV 29)were assessed at USD 11144/MT during June compared to the previous month.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, sentiments for Ethylene Acrylic Elastomers (AEM) in North America remained divided. In the initial quarter, prices surged and then seesawed afterwards. High upstream crude oil prices further impacted feedstock Ethylene and Acrylic acid prices, resulting in a supply shortage that has weighed on the high cost of Ethylene Acrylic Elastomers (AEM) in the domestic market of the United States. Because of the drop in crude oil and raw material cost, prices fell marginally in the last month of Q1 2022. The decline in the price was attributed to the increased inventory levels and sluggish demand. Furthermore, demand from the downstream Automotive industry as lubricants remained low during February and March.
Asia-Pacific
During the first quarter of 2022, Ethylene Acrylic Elastomer (AEM) values increased. The ongoing conflict between Russia and Ukraine influenced upstream crude oil prices, which impacted the prices of feedstock Ethylene, resulting in a supply deficit that has weighed on Ethylene Acrylic Elastomer (AEM) pricing in the Indian market. Strong demand from the automotive industry as a lubricant prompted manufacturers to increase their operating rates to protect revenues in the first quarter, affecting the market values of widely used raw materials such as Ethylene Acrylic Elastomers (AEM). In addition, rising freight rates owing to a container shortage aided Ethylene Acrylic Elastomers (AEM) price. Due to a low inventory level in the domestic market, producers have been unable to meet local demand in Q1-2022.
Europe
Ethylene Acrylic Elastomer (AEM) prices showcased continuous rise throughout Europe from the start of the first quarter of 2022. The price inclination was attributable to increasing downstream demand as a lubricant from the automotive industry. Furthermore, the impact of upstream crude oil amidst the Russian-Ukraine conflict impacted the feedstock Ethylene prices, which weighed on the costs of Ethylene Acrylic Elastomer (AEM). Moreover, Germany's prohibition on Russian gas imports has not only raised crude oil prices but has also delayed local Ethylene Acrylic Elastomer production, as several Elastomer industries in Europe halted output owing to the energy crisis.
For the Quarter Ending December 2021
North America
In US, the prices of Ethylene Acrylic Elastomer (AEM) remain robust in the first half of the quarter and prices further dropped in the second half. Feedstock Acrylic Acid prices in December were observed to be USD 8989/ton FOB USGC (MV 20). The trading activities were observed to be healthy with increase in demand from the downstream industry. Increase in freight charge and container shortage remained the main concern throughout the quarter. The growth in the elastomer market has to a very large extent been due to increased demand from automobile and adhesive industries.
Asia Pacific
In Q4, the demand of Ethylene Acrylic Elastomer (AEM) surged with the succeeding months. Taking pressure from rising raw material cost coupled with revival in demand from domestic market, Ethylene Acrylic Elastomers prices rose effectively in Indian market. Festive season in India brought a much-needed revival to the Indian automotive industry, as the demand fundamentals improved effectively in the country. However, shortage of semiconductor chips resisted the actual market growth, which is still a major concern for automakers. In addition, rising raw material cost and freight congestion exacerbated the overall price trend for the product in the country. Ethylene Acrylic Elastomer (AEM) prices were assessed at USD 8675 per MT (MV 29) in India in December.
Europ
In Q4, the European market for Ethylene Acrylic Elastomer (AEM) was strong with increase in demand from downstream market. The demand for Ethylene Acrylic Elastomer (AEM)was burdened from the automotive areas, while other end-client industries gave some interest side support. Volatile raw material cost was one of the significant challenges faced by the synthetic rubber market players. The market for synthetic rubber was extremely cutthroat; even little changes in the market interest adjustments are reflected in its costs. Since synthetic rubber feedstock is gotten from unrefined petroleum, any ascent in unrefined petroleum costs expanded the expense of creation and diminishes the net revenues of the producers of the enterprises.
For the Quarter Ending September 2021
North America
The prices of Ethylene Acrylic Elastomer (AEM) rose effectively in the North American region in Q3 2021. The domestic market witnessed a major hike in the demand for Ethylene Acrylic Elastomers (AEM) from the downstream tire and automotive sectors despite reduced production of automobiles amidst global semiconductor shortages. However, increasing raw material cost and low availability of upstream feedstock, and logistics problems in the region resulted in a snug supply of the material. Therefore, the price chart of Ethylene Acrylic Elastomer (AEM) has witnessed an upward trend in the third quarter.
Asia Pacific
The overall market outlook of Ethylene Acrylic Elastomer (AEM) showcased feeble market fundamentals in the Asia Pacific region during the third quarter. In India, despite severely dull market sentiments from the downstream automotive segment, the prices of Ethylene Acrylic Elastomers (AEM) encountered an unexpected dull of about 13.4% in the month of August. Ethylene Acrylic Elastomer CFR JNPT (India) prices witnessed a decline from USD 8561/MT to USD 7407/MT from July to August (MV 16.5-18.5). Traders revealed that several shipping companies declined their shipping rates during the quarter, further triggering a fall in Asian Ethylene Acrylic Elastomer (AEM) prices.
Europe
The European synthetic rubber industry grappled with an uncertain environment as no suppliers took new orders in the 3rd quarter of 2021, while customers prepared themselves for a further squeeze on availability due to lack of plant operations. The demand for Ethylene Acrylic Elastomer (AEM) was weighed down from the automotive sectors, while other end-user industries gave some demand side support. Challenges such as a global shortage of semiconductor chips and low-capacity utilization impacted the available market supplies.
For the Quarter Ending June 2021
North America
Ethylene Acrylic Elastomer (AEM) supplies in the North American region were better in Q2 despite continued production lags due to extended delays in the plant start up maintaining supply side pressure. Stronger upstream and downstream operations raised market sentiments in Q2. The regional price uptrend remained buoyed by high upstream costs and squeezed market supplies. DuPont surged the production rates at its AEM rubber facilities as the enquiries were consistent and the orders piled up since the previous quarter. Demand surged with persistent offtakes from the downstream tire and automotive sector despite the reduced production of Automobiles amidst the semiconductor shortages. As a ripple effect AEM pricing trend in the North American region remained sturdy in the second quarter of 2021.
Asia Pacific
Despite the severely dull market of downstream automotive sector in India, Ethylene Acrylic Elastomer (AEM) price trend observed an unexpected up stride taking cues from firmer upstream rates and raised international offers. CFR JNPT discussions were assessed at USD 9037 per tonne (MV 29) in June. Whereas in China, the rising commodity inflation rate and firmer raw material Ethylene raised the Chinese AEM offers. Strong economic rebound supported the demand outlook from the automotive and consumer goods industry. However, affected port operations in South China due to surge in COVI cases kept some shipments stuck. The addition of new crackers in China provided the ample upstream availability to keep the production rates of the AEM rubber smooth in the second quarter of 2021. Demand was consistent from the automotive and consumer goods sector.
Europe
Ethylene Acrylic Elastomer (AEM) supply conditions in the European region improved with better operating rates in the refineries and crackers after the winter season. Better feedstock availability kept the run rates in the facilities smooth. Better import volumes from the US and Asian region further supported the supply outlook in the European market. Demand remained persistent from the downstream automotive and consumer goods sector which gained pace with the vaccine roll out and economic rebound. As a ripple effect, AEM prices in the European market maintained a firm stance in the second quarter of 2021.
For the Quarter Ending March 2021
North America
The North American Ethylene Acrylic Elastomer (AEM) market remained sluggish as the demand from the automotive sector declined in the quarter as the auto production was hindered due to limited supplies of AEM. The supplies were tight throughout the quarter because of the extreme weather conditions. As a repercussion of the calamity, nearly 70% of Ethylene capacity went offline in US, followed by the ruptured pipelines which extended the production turnarounds till next quarter in several plants. DuPont surged the prices of AEM for March 2021 deliveries by USD 8530 per MT (MV 29) FOB USGC, as nearly all crackers resumed operations by nearly 80%.
Asia Pacific (APAC)
Supplies in the APAC region improved during the first quarter of 2021, as the turnaround in several plants in Northeast Asian region ended, easing the availability of cargoes in several countries. However, significant constraints were witnessed as the imports to the region declined amid high freight charges and global shortage of upstream Ethylene. Demand surged as the offtakes were greatly impacted in a positive manner by the recovering automotive industry. Consequently, prices of AEM surged amid constrained supplies, CFR JNPT (MV 29) prices averaged at USD 8104 per MT throughout the quarter.
Europe
The European market remained sluggish during the Q1 of 2021, as the supply shortage was witnessed due to the limited availability of the upstream products as the refineries in US were operating at low production rate due to extreme weather conditions. Crude imports significantly declined in the region due to the limited public movement amid the lockdown in several parts across the region. Price trend in Europe overall remained up due to the limited availability.
For the Quarter Ending December 2020
North America
The supplies remained limited during the first half of Q4, after a major slump in feedstock Ethylene availability amid the hurricane season in the Gulf region. The Hurricane season in the Gulf region caused power disruptions, which hindered production efficiency. The demand surged amid the improved consumption from the recovering automotive sector. Thus, prices of AEM surged due to the supply shortage and rich values of feedstock Ethylene.
Asia
Supplies slowed during Q4 of 2020, due to increased consumption of Ethylene Acrylic Monomer (AEM) from the automotive sector. Tight supply of AEM was exacerbated by the scheduled turnarounds in the feedstock plants in North-east Asian region. The demand witnessed an enormous surge after the restrictions were uplifted from various region followed by the revival of automotive sector. Steep increment in the global freight rates followed by the supply tightness led to hike in AEM prices in the Asia Pacific region. Consequently, AEM prices in India averaged at USD 8090 per tonne (MV 29) CFR JNPT in Q4 2020.
Europe
During Q4 of 2020, the prices of Ethylene Acrylic Elastomers (AEM) surged proportionally with the pricing trend of the feedstock. The supplies were tight due to the limited container availability across the globe which caused tremendous fluctuation in its prices. In the first half of Q4 2020, the regional economy started to recover with the resumption of commercial and industrial activities followed by improved consumption from the automotive sector. However, the lockdown imposed across several countries created uncertainties regarding the procurement of AEM.
