Ethylene Acrylic Elastomer Prices Continue to Rise in the USA and European Market
- 06-Mar-2023 5:43 PM
- Journalist: Gabreilla Figueroa
Since the beginning of February, Ethylene Acrylic Elastomer prices have witnessed an upward trend across the USA and European markets due to improved buying sentiments in the region. High feedstock prices, volatile energy prices, and rising interest rates have obstructed the market growth of Ethylene Acrylic Elastomer. Although, demand for Ethylene Acrylic Elastomer has remained stable throughout February 2023.
In the European market, Ethylene Acrylic Elastomer prices raised considerably after the holidays as market participants replenished the material available in the domestic market. Operating rates have been steady in domestic production due to stable consumption from the downstream industries. On the other side, feedstock Ethylene and Methyl Acrylate prices have risen, resulting in the higher production cost of Ethylene Acrylic Elastomer. Meanwhile, imported Ethylene Acrylic Elastomer prices have comparatively higher than the domestic prices as prices continue to increase in the Asian market. Furthermore, Natural gas prices have dropped in the European region. According to data from Gas Infrastructure Europe (GIE), stocks in the European Union (EU) and the United Kingdom amounted to a seasonal record 685 Terawatt Hours (TWh) on 28th February, and storage was almost 61% full. In addition, procurement activities have increased in the European market, although demand from the downstream automotive industry has remained passive. At the same time, market participants reported that demand from the downstream sectors would increase in Q2 or Q3 of 2023 as the major demand season for the automotive industry. Hence, as a result, prices of Ethylene Acrylic Elastomer were settled at USD 5000/MT with a month-on-month increment of USD 700/MT during February 2023.
Similarly, in the USA market, Ethylene Acrylic Elastomer prices increased significantly due to high-cost pressure from the feedstock Ethylene and Methyl Acrylate. Demand from the downstream automotive and other competitive industries has been stable in the domestic market. The purchasing manager’s index increased slightly from 47.4 to 47.7 in February 2023 compared with the previous month. As per the market source, Federal Reserve increased the benchmark lending rate several times over the past year in an effort to reduce demand and contain expenses, even though some areas of the economy have shown to be more resilient than anticipated.
In conclusion, Ethylene Acrylic Elastomer prices were assessed at USD 4430/MT with a month-on-month inclination of USD 775/MT during the same time frame.
As per ChemAnalyst, “Ethylene Acrylic Elastomer is projected to rise in the USA and Europe due to further anticipation of growing demand from the downstream automotive industry. Meanwhile, feedstock Ethylene and Methyl Acrylate prices will increase, which may positively affect the prices of Ethylene Acrylic Elastomer in the coming month.”