Amidst Uncertain Demand Dynamics, Ethylene Acrylic Elastomer Market Witnesses Mixed Sentiments in the USA and Europe
- 22-May-2023 4:33 PM
- Journalist: Gabreilla Figueroa
Since the beginning of April 2023, Ethylene Acrylic Elastomer prices have shown an oscillating trend across the USA and European markets. In the European market, Ethylene Acrylic Elastomer has continued to exhibit a bullish trend as demand from the downstream automotive industries and limited supply in the region have increased. However, in the USA market, Ethylene Acrylic Elastomer prices have declined due to dull buying sentiments and ample supply. Furthermore, the economic uncertainties, including ragging inflationary pressure and rising interest rates by US Federal Reserve, have squeezed the market sentiments of Ethylene Acrylic Elastomer.
During April 2023, Ethylene Acrylic Elastomer prices significantly increased in the European market due to improved buying trends among the end-users. Imports from the exporting countries, including Asia and others, have remained slow in the European ports or market as the supply chain in the market has been disrupted by the ongoing strike by trade unions, thus limiting the material available in the regional market. Furthermore, the procurement from the downstream automotive and other allied industries has been improved. The market transactions were also escalated; thus, the price dynamics of Ethylene Acrylic Elastomer have been observed to be in positive territory with a rise in sales volumes. According to the European Automobile Manufacturers Association (ACEA), new car registrations in Europe increased by 17.2% in April 2023. Thus, prices of Ethylene Acrylic Elastomer in Germany were settled at USD 6800/MT with a month-on-month increment of USD 1025/MT on a CFR Hamburg basis.
Although, the prices of Ethylene Acrylic Elastomer have remained on the lower end in the US market. The weak procurement from the downstream automotive sector has further weighed down on the price realizations of Ethylene Acrylic Elastomer in the domestic market. On the other hand, the high inflation pressures and worries of a financial crisis amid the banking turmoil have intensified the economic conditions in the US market. According to the sources, US new vehicle sales have declined by 2.0% in April 2023 but an increase of 7.7% yearly (compared with the previous year, April 2022) when the supply chain restricted production. As a result, Ethylene Acrylic Elastomer FOB USGC prices were offered at USD 4200/MT with a monthly decrement of USD 55/MT during April 2023.
As per the ChemAnalayst anticipation, Ethylene Acrylic Elastomer prices are expected to increase in the USA and European markets due to further expectations of growing demand from the downstream automotive and construction industry. Furthermore, Celanese Corp. is increasing the prices of Ethylene Acrylic Elastomer in the Global market, which is effective from 1st June.