As of September 2025, AEM (Ethylene Acrylic Elastomer) prices have considerably declined by 3.2% due to favourable economic conditions and stable supply side dynamics. The Ethylene price decline is attributed to the overall decline in AEM prices. The reduced-price development is providing welcome relief to manufacturers of AEM who use the material for automotive, aerospace and other industrial applications.
A significant reason for the price decrease is attributable to a 0.17% appreciation of the Euro versus the US Dollar, which lowered procurement costs of AEM imports from the US market. Also, a decline in freight rates along Trans-Atlantic routes has decreased logistics costs and aid manufacturers in keeping competitive price levels. Improved inventory and efforts by manufacturers to optimize operations have further contributed to the decreased AEM cost and created an important and less costly business environment for consumers in spite of economic hardships, global inflationary pressures, and rising interest rates.
The supply situation with AEM is still strong due to good inventory levels and improved logistics processes. Companies have been working to reduce lead times to ensure continuity of supply. Some slight delivery delays were seen because of labor shortages at ports in Germany, together with rail access problems at key terminals including CTH and CTB. Overall, the market has maintained quality supply of AEM, to meet demand in targeted industries.
The ongoing demand for AEM is also helped by the automotive and aerospace industries providing a cushion to any headwinds in the larger manufacturing sector. According to the Germany Federal Motor Vehicle Office (KBA), new registrations for passenger cars in September 2025 was 235,528, a 12.8% increase year-over-year, indicating sustained demand for AEM in components such as gaskets and sealants. The aerospace industry continues to show strength, with Airbus delivering 73 airplanes to 41 customers in September, an increase from the 61 airplanes delivered in August, showing sustained demand for AEM in coatings and other uses.
Conversely, the construction sector’s ongoing recession, marked by declining residential and commercial activity, is dampening AEM demand. Rising construction costs and sluggish new orders are limiting project budgets, impacting material usage. Despite these challenges, government investments in civil engineering provide some optimism.
As per the ChemAnalyst anticipation the price of the AEM is expected to showcase bearishness in the upcoming sessions. This anticipation of bearishness in the AEM price is primarily linked with the lower feedstock price projection and the subdued manufacturing activities which is expected to dampen the demand in near term.
