For the Quarter Ending December 2024
North America
The North American Thermoplastic Elastomer (TPE) market remained relatively stable throughout Q4 2024, despite some fluctuations in demand and supply dynamics. Prices showed limited movement, with suppliers largely working through existing inventories, which helped prevent any significant price increases. In November 2024, the US automotive market displayed signs of gradual recovery, supporting stable TPE prices. The rise in new car sales, particularly in the hybrid segment, was a key factor in the positive outlook, though the impact on TPE prices was largely absorbed by abundant inventory levels.
While feedstock Styrene prices remained stable, logistical challenges, including backlogs in Houston warehouses and delays caused by the ILA strike, contributed to inventory accumulation, exerting downward pressure on prices. Despite these supply chain hurdles, production levels remained healthy, with the American Chemistry Council reporting a 5.8% increase in TPE production in November 2024. On the export front, conditions improved, although weaker demand from key markets like Canada and Mexico dampened growth.
Overall, despite some localized disruptions and a slight decline in export demand, the TPE market in North America maintained a balanced and steady pricing environment through Q4 2024.
APAC
In Q4 2024, the Thermoplastic Elastomer (TPE) market in the Asia-Pacific (APAC) region experienced a marginal downward price trend, with prices declining by approximately 0.5%. Ample supply conditions dominated the quarter as production rates remained high, supported by elevated styrene inventories in China, which reached 31,900 tons by December. Operating loads for TPE production averaged 86%, contributing to oversupply and consistent downward pressure on prices. Domestic demand in China was bolstered by the strong performance of the automotive sector, where passenger vehicle sales rose by 12% year-on-year in December, driven by government incentives and increasing demand for new-energy vehicles. However, export demand from key Southeast Asian markets such as Vietnam and Malaysia remained weak. Vietnam’s automotive sector faced a significant downturn, with vehicle sales dropping 29% month-on-month in December, while seasonal disruptions and higher freight costs further hampered export activity. Despite stable demand from China’s automotive sector, the combination of oversupplied feedstock, subdued export demand, and regional logistical challenges prevented any price recovery. Overall, the APAC TPE market concluded the quarter with a bearish sentiment, reflecting a mix of abundant supply and uneven demand dynamics.
Europe
In Q4 2024, the European Thermoplastic Elastomer (TPE) market exhibited a steady downward price trend. Throughout the quarter, European TPE prices faced consistent pressure due to weak demand, particularly from the automotive sector. While the region experienced ample supply due to low operating rates and reduced production in several manufacturing facilities, the demand remained underwhelming. The automotive industry, a key driver of TPE consumption, saw only marginal improvements, which did little to alleviate the overall market downturn. Despite a slight increase in Styrene prices, production costs remained relatively stable, and feedstock prices rose only moderately. Logistical challenges, including port congestion and maintenance work, also disrupted the flow of goods, adding to the downward pricing pressure. Throughout the quarter, European suppliers were mainly focused on reducing their inventory levels, which were already substantial due to previous months' low demand. These conditions led to minimal procurement activities, and most suppliers kept prices steady with few adjustments. As a result, TPE prices for Q4 2024 remained under pressure, with the outlook for early 2025 not expected to show significant recovery unless demand from the automotive sector improves markedly.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Thermoplastic Elastomer (TPE) pricing in North America has been characterized by a significant upward trend in prices. Several key factors have influenced market prices during this period, notably the continuous increase in production costs driven by rising prices of feedstock materials, particularly Ethylene. Supply chain disruptions due to plant maintenance and force majeures have further tightened supplies, exerting upward pressure on prices. Additionally, subdued demand from the automotive industry and cautious procurement activities have contributed to the price increments.
In the USA, the market has experienced the most substantial price changes. From the previous quarter in 2024, prices have risen by 3%, Sindicating a steady upward trajectory. The second half of the quarter saw a 1.5% price increase compared to the first half, demonstrating a sustained positive momentum in pricing.
As the quarter draws to a close, the latest price stands at USD 6041/MT of Thermoplastic Elastomer TPE- FOB Chicago in the USA, reflecting a consistently increasing pricing environment driven by supply constraints and rising production costs.
APAC
The third quarter of 2024 for the Asian Thermoplastic Elastomer (TPE) market was marked by a gradual decline in prices, driven by several key factors. In China, prices for Thermoplastic Elastomers fell as moderate production levels, coupled with lacklustre demand from the automotive industry, balanced market conditions. Despite the automotive sector achieving high production rates, sales continued to slump, keeping demand unfavourable. Insights revealed that China's manufacturing activity hit a six-month low in August, as factory gate prices plummeted, and manufacturers struggled to secure orders. This situation pressured policymakers to consider increasing stimulus for households. Sentiment among manufacturers remained gloomy, exacerbated by a prolonged property crisis that has dampened domestic demand, along with looming Western curbs on exports, including electric vehicles. New orders and export sub-indices remained firmly in negative territory, resulting in a hiring freeze across the sector. Overall, the quarter recorded a 6% decrease compared to the previous quarter, with a consistent negative pricing environment reflected by a -1.6% change between the first and second halves. By the end of the period, the price of thermoplastic elastomer FOB Shanghai in China reached USD 2118/MT, underscoring the challenging market conditions.
Europe
The third quarter of 2024 for the European Thermoplastic Elastomer (TPE) market has been characterized by a gradual increase in prices, driven by several key factors. Significant influences on pricing included rising production costs due to inflationary pressures in feedstock prices, particularly Styrene, which surged by approximately 8%. This surge in Styrene prices, attributed to higher upstream Benzene costs, played a crucial role in driving up overall TPE prices. In Germany, the market witnessed the most significant price changes, further emphasizing the upward trajectory in pricing for the region. The quarter recorded a 1% price increase from the previous quarter, maintaining the overall positive sentiment. The price comparison between the first and second half of the quarter showed a consistent 1% increase approximately, reflecting stability in the pricing environment. The quarter-ending price for Thermoplastic Elastomer (TPC-ET Copolyester) IM Grade FD Hamburg in Germany stood at USD 6916/MT, indicating a steady rise in prices throughout the period. Overall, the pricing environment for TPE in Europe during Q3 2024 has been characterized by a steady and positive upward trend.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a sharp escalation in Thermoplastic Elastomer (TPE) prices throughout North America, driven by a complex interplay of market forces. Rising production costs, particularly fuelled by increases in Styrene and Ethylene feedstock prices amidst plant shutdowns and logistical bottlenecks, were primary catalysts for this surge. Market optimism initially soared on the back of expanding manufacturing activities and robust automotive demand typical for the season. However, as the quarter progressed, waning consumer confidence, economic uncertainties, and election-related anxieties tempered automotive sector growth.
The Federal Reserve's decision to maintain interest rates between 5.25% to 5.5% further complicated economic forecasts, influencing broader market dynamics. In the U.S., TPE prices saw a substantial 8% increase from the previous quarter and a notable 19% surge compared to Q2 2023, reflecting a buoyant yet constrained market grappling with supply and demand pressures. Seasonal factors, like the summer driving season, bolstered automotive demand, aligning with consumer behaviour trends and contributing to price escalations.
Within the quarter, a modest 2% price rise between the first and second halves highlighted steady upward pricing momentum. Ultimately, closing at USD 3917/MT for Thermoplastic Elastomer TPE-SEBS CFR Houston, the quarter concluded on a robust note, underscoring a resilient pricing environment bolstered by strong demand and escalating production costs.
APAC
Throughout the second quarter of 2024, the Thermoplastic Elastomer (TPE) market in the APAC region underwent a significant decline in prices, marking a period of notable economic turbulence. This downturn was not merely a result of isolated incidents but rather a culmination of several interconnected factors that exerted immense pressure on market dynamics. Firstly, disruptions in freight logistics contributed significantly to the challenges faced by TPE suppliers and manufacturers. Delays in inventory movement due to these disruptions exacerbated existing supply chain inefficiencies, particularly impacting the timely availability of TPE materials across the region. Concurrently, a force majeure event at a major styrene plant in China added another layer of complexity by constraining the supply of essential raw materials, thereby driving up upstream costs.
The interplay between supply disruptions and demand fluctuations, particularly from key sectors like automotive manufacturing, played a pivotal role in shaping the pricing landscape. The automotive sector, a significant consumer of TPE products, exhibited a mixed recovery pattern during the quarter. This variability in demand exerted further downward pressure on prices as manufacturers adjusted production levels in response to market conditions. Despite these challenges, the pricing environment was moderated to some extent by fluctuating production costs of feedstocks such as ethylene and Styrene. These raw materials, essential for TPE production, experienced variable pricing throughout the quarter, providing a counterbalance against a sharper decline in finished TPE product prices. In China, the largest market for TPE in the region, the pricing trends were most pronounced. A consistent downward trajectory characterized the quarter, driven by subdued domestic demand and intensified competition from alternative materials. These factors underscored the persistent nature of the price decreases observed in the market. By the end of the quarter, TPE prices had fallen significantly, reflecting an 18% decrease year-on-year and a 3% decline compared to the previous quarter. Within the quarter itself, prices continued to slide by 3% between the first and second halves, culminating in a closing price of USD 2193 per metric ton FOB-Shanghai. This final figure underscored the prevailing negative pricing trend that defined the entirety of Q2 2024. In conclusion, the second quarter of 2024 was marked by a challenging economic environment for the TPE market in APAC, shaped by external supply constraints, logistical challenges, and fluctuating demand dynamics. These factors collectively contributed to a significant downturn in prices, highlighting the vulnerability of the market to broader economic and operational disruptions.
Europe
The second quarter of 2024 has brought a strong upward trend in Thermoplastic Elastomer (TPE) prices across Europe, driven by several pivotal factors. A notable driver has been the escalating costs of essential raw materials like Styrene and Ethylene, propelled by disruptions in supply chains and capacity reductions. The automotive sector, despite a preference shift back to internal combustion engine vehicles, has provided steadfast support early in the quarter, buoyed by rising registrations and sales that sustained demand for TPE in manufacturing. This was further accompanied by unfavourable weather conditions and strikes by Union workers at key European ports which increased the lead time for deliveries and surfaced as higher transportation costs.
In Germany, the TPE market experienced significant price surges, primarily fuelled by a resurgent automotive industry driving demand for TPE in auto parts production. Seasonal demand patterns also contributed to price stability during spring. Prices in Germany rose by 7% year-on-year and 2% from the previous quarter in 2024, with a steady 2% increase observed within the quarter itself. Closing at USD 5299/MT for Thermoplastic Polyurethane Copolyester FD Hamburg, the quarter concluded on a consistently positive note. Germany's TPE market has thrived amidst unfavourable economic conditions, strong demand, and challenging conditions in the present supply chain system, contributing towards a robust and upward trajectory in pricing. Overall, the second quarter underscored resilient market dynamics and positive price movements, affirming a buoyant landscape for TPE across Europe.
For the Quarter Ending March 2024
North America
The North American Thermoplastic Elastomer market witnessed an increment of approximately 8% in the prices during the opening quarter of 2024, with market situation being primarily bullish.
Increments in the prices of the product are attributed to heightened production costs as prices of feedstock Styrene inflated by approximately 27% and prices of another feedstock Ethylene increased by 2%. The North American Thermoplastic Elastomer market is largely driven by the positive demand from the downstream automotive industry as sales continued to expand throughout the first quarter after witnessing a post festive dullness in January 2024.
Automotive sales across the US were recorded to have appreciated by 34% and more than 30% across the whole of North American market as the spring driving season neared and transactions continued to lay in the positive territory. Further indication of the robust demand in the automotive industry was the failure of anticipated price reductions by major manufacturers towards the quarter's end, maintaining pressure on automotive production. Moreover export conditions to also remained favorable as evidenced by surging automotive sales across the primary importing Canadian and Mexican markets.
Asia
The Asian Thermoplastic Elastomer market continued to witness a bearish market situation during the opening quarter of 2024 with prices depreciating by almost 6 percent during this quarter. The key reasons considered for the depreciations in the prices of the product were excess inventories in circulation amidst the moderate demand from East and Southeast Asian markets. Moreover, challenging weather conditions, across East China and Shanghai led to stockpiling of inventories, coupled with heightened freight charges which prevented the suppliers from exporting to merchants based in North America and Europe. Moreover, post festive Chinese Lunar New Year also witnessed expanded manufacturing activities amongst Asian suppliers, who lowered prices to attract buyers. Despite ample support from the feedstock Styrene and Ethylene prices, which appreciated by approximately 12 percent, the Chinese Thermoplastic Elastomer was primarily driven by low demand from the Southeast Asian market and a hesitation amongst suppliers for restocking activities after the post festive Chinese Lunar New Year.
Europe
The prices of Thermoplastic Elastomers have witnessed a minor increment of approximately 1% across the European market during the opening quarter of 2024. The increments in the prices of the product were attributed to the increase in the prices of feedstock Styrene, which rose by approximately 45%. Further, during this timeframe, prices of another feedstock Ethylene surged by approximately 28% thereby resulting in heightened production costs. Complementing the production costs, prices of feedstock upstream Benzene also surged by approximately 44%, resulting in heightened production costs for Styrene. In terms of demand, the demand from the downstream automotive industries gradually improved after the post-festive dullness experienced during the beginning of the year. Despite automotive sales gradually increasing during the latter period of the quarter, the demand for the product remained mostly moderate. The prime reason for the moderation of the prices of the product was attributed to consumer preferences, transitioning towards EVs and battery-operated vehicles. This proved to be detrimental to the European Thermoplastic Elastomer market as EV shares in the automotive market increased by 16% on a quarterly basis.
