As of mid-July 2025, the asian Polyolefin Elastomer (POE) market held steady, supported by firm automotive offtake but restrained by weak construction sentiment. POE suppliers maintained stable offers amid cautious output adjustments and mixed demand signals. Despite a dip in exports, POE inventories aligned with consumption trends, reflecting a wait-and-watch stance in a cautiously optimistic market.
As of mid-July 2025, POE prices in South Korea remained stable. Despite a modest rise in Ethylene prices, suppliers refrained from revising their offers upward, opting instead to maintain price stability in a market still balancing mixed signals from key sectors.
Automotive sales in June gave suppliers a reason to stay optimistic. According to the Automobile Manufacturers Association (OSD), 122,508 units were sold, up 9.77% from May and nearly 12% higher than June 2024. The growth in domestic vehicle production continued to support POE demand, particularly in lightweight interior and under-the-hood applications, keeping procurement from suppliers relatively active.
However, the broader mood in construction remained downbeat. The Construction Sector Confidence Index slipped 1.7% MoM to 86.9 in June, and expectations around new orders and employment also softened. These figures painted a cautious picture, with contractors showing limited appetite for fresh procurement of POE grades used in insulation, sealants, and flexible roofing membranes.
Exports also did not deliver much upside. According to Statistics Korea, South Korea’s exports of ethylene-based copolymers in primary forms, including POE, stood at 39,682.47 metric tons in June, marking a 3.92% month-on-month decline. In response, suppliers adjusted output levels cautiously, maintained competitive offers, and aligned inventories with current offtake trends. Persistent weakness in China’s property market, including another decline in new home sales, weighed on orders for construction-grade elastomers.
Given these conditions, South Korean exporters chose to play it safe. There was no strong momentum in either direction—demand from autos helped cushion the downside, while poor construction sentiment prevented any meaningful upside. With feedstock supply running smooth and no major logistical hurdles, suppliers stuck to their usual contract dispatches and held prices flat, signaling a POE market still in wait-and-watch mode.
As per the ChemAnalyst anticipation the price of the POE is expected to showcase stable to bullish momentum in the upcoming sessions. This anticipation of fluctuations in the POE price is majorly align with the projection of rise in the Ethylene price and the marginal price correction from the market participants towards upside in the continuous downwards POE price trend.
