The prices of Thermoplastic Elastomer (TPE) in Asia decreased in early October 2025, with the most significant decrease noted in China. The decrease in TPE prices was a reflection of weak supplier activity, lower feedstock costs and lackluster demand from key downstream industries.
The falling TPE prices in China were primarily a response to decreasing costs for Styrene and Butadiene, which caused overall production costs to decrease and prompted suppliers to reduce offers to stimulate sales. The feedstock markets were weaker on softer energy prices and plenty of availability in the region. Nevertheless, the producers were able to maintain stable operating rates to protect market share despite weak order flows. Most producer's inventory levels remained comfortable in support of sales, despite an overall bearish sentiment developing in the market.
The demand conditions did not provide any support of substance. Consumer goods and automotive manufacturing contracted in the quarter, which placed a substantial lag on consumption levels, with converters operating carefully and refraining from new purchases. Despite China’s automobile sales increasing to 3.23 million in September, this did not lead to a meaningful uptick in TPE demand, with the majority of processors holding off bulk purchases until the holidays concluded. The construction sector was also lackluster, marked by slow uptake of materials and ongoing stress in the real estate segment, which constrained consumption of TPE as sealants and coatings.
Prior to the holiday period, export orders for TPE-based finished goods weakened, contributing to lower trade volumes. Buyers exhibited just-in-time purchasing, steering away from stock accumulation given the uncertain post-festival outlook. This cautious buyer behavior, combined with steady production and lower feedstock costs, produced modestly destocking pressure that extended the downward pricing trend. The excess supply in the regions of inquiry and weak global ordering provides little to no incentive for the Chinese suppliers to maintain previous price points.
According to ChemAnalyst's forecast, prices of TPE are projected to exhibit stable to downward trends in the coming sessions. This forecast of TPE price fluctuations is mostly aligned with the low demand from the downstream end market and the higher inventory levels which will motivate the market players to cut back on inventory accumulation, which will maintain feedstock supply and costs down giving the overall production costs stability. These factors will greatly impact the TPE price in short-term.
