Ethylene Acrylic Elastomer Prices Surge in the USA and Europe Amid Improved Demand Dynamics

Ethylene Acrylic Elastomer prices have increased drastically across the USA and European markets during the second month of Q2 of 2023. The rise in inquiries from the downstream industry has supported the Ethylene Acrylic Elastomer prices to follow the uptrend in the regional market. On the raw material side, Ethylene and Methyl Acrylate prices have dropped, but it had limited bearing over the prices of Ethylene Acrylic Elastomer.

Prices of Ethylene Acrylic Elastomer have risen substantially in the German market as prices increased in the major exporting nation like Japan. Demand from the downstream automotive industry has escalated in the domestic market, which forces the manufacturer to raise their prices in the domestic market. According to the KBA Federal Transport Authority, new car sales in Germany grew strongly in May as supply chain problems eased. A total of 246,966 new cars were registered in Europe's top economy Germany last month, up 19.2% from a year earlier, thus boosting the market sentiments of Ethylene Acrylic Elastomer in the domestic market.

Furthermore, on the input energy front, with the declining cost of TTF Natural Gas, German state-owned utility Uniper reported a first-quarter net profit of 6.7 bn Euros ($7.43 billion) and contributed to diminishing the inflationary pressure in one of the major economies particularly, Germany. As per the federal statistics agency Destatis, the annual inflation rates in Germany dropped from 7.2% to 6.1% in May, thus improving the purchasing power of the end-use industry. In addition, the domestic operating rates have improved as the energy prices have slowed in the European market, which promoted the manufacturers to enhance their operating rates.

Thus, Ethylene Acrylic Elastomer CFR Hamburg prices were settled at USD 8000/MT with a monthly increment of USD 1200/MT during May 2023.

Similarly, Ethylene Acrylic Elastomer prices increased in the USA market during May 2023. The increase in inquiries from the downstream automotive sector has supported the inclination observed in the price realizations of Ethylene Acrylic Elastomer in the domestic market. As per the market sources, the overall sales of major downstream market players, including Ford, Honda, and Kia America, increased by 5.6%,24.9%, and 15.5% in May, compared to last year's prices in the same period. On the other side, the new export order has raised by 49.8 to 50 with a month-on-month slight increment of 0.2% during May.

In addition, after peaking at 9.1% in June of last year, the US inflation rate has steadily decreased, indicating that the US Federal Reserve's tight monetary policy approach has reduced inflation but is still above the target of 2%.

Therefore, Ethylene Acrylic Elastomer FOB USGC prices were settled at USD 4800/MT with a month-on-month increment of USD 600/MT during the same time frame.

According to ChemAnalyst, Ethylene Acrylic Elastomer prices will continue to surge in the USA and European markets in the backdrop of a rise in demand from the automotive industry. The cost pressure from the feedstock Ethylene and Methyl Acrylate may increase, positively impacting the production cost of Ethylene Acrylic Elastomer. Furthermore, market players anticipated that inflation would ease further, which might improve consumer sentiments in the upcoming months.