Global Ethylene Acrylic Elastomer Market Plummeting on Quiet Downstream Demand
- 27-Jul-2022 5:01 PM
- Journalist: Yage Kwon
Since the beginning of July 2022, prices of Ethylene Acrylic Elastomer have witnessed a downward trajectory in the global market. The price drop is supported by the sinking demand from the domestic and regional markets, followed by poor buying sentiments. Besides, the tumbling upstream crude oil prices are further pulling down the values of its derivatives.
In India, the price of Ethylene Acrylic Elastomer has plunged, and the prices have been quoted at INR 153000-155000/Tonne on a CFR JNPT basis. In addition, a fall in the import prices of Ethylene Acrylic Elastomer from the Asian regions like South Korea and Japan has the other facets for the price decline in the Indian market. However, since inflation has threatened the Indian market, traders have become increasingly concerned about the pricing dynamics of raw materials. As a result, some significant Indian traders began offering bulk purchase discounts to downstream manufacturers to stabilize inventory levels. At the same time, Ethylene Acrylic Elastomer prices dropped by 1.3% in the Japanese market, supported by the dull market outlook as buyers are sticking to the side-lines and waiting for additional price dips.
On the other hand, weak downstream demand fundamentals have caused Ethylene Acrylic Elastomer prices to fall in the US market. Despite this, high Inflationary pressure and recession has been a cause of concern; as a result, most buyers retreated to the side-line for a wait-and-see attitude and only bought on a need-to basis. As a result, the price of Ethylene Acrylic Elastomer FOB UGSC has declined by 2-3% during July 2022.
As per the latest insight, German manufacturing activity has dropped, and PMI shifted to the lowest level compared with the previous month. As a result, Ethylene Acrylic Elastomer price has recently slipped by nearly 0.3% to 1.2% in the German market during the same time frame. Meanwhile, demand from the downstream automotive industries has remained muted amidst the summer season, which further weighed down the prices of the Ethylene Acrylic Elastomer in the domestic market.
According to the ChemAnalyst analysis, "the prices for Ethylene Acrylic Elastomers will likely follow the further downtrend during August if low crude prices are sustained for a protracted period. In the meantime, the sluggish demand from the downstream automotive sectors might considerably impact the value chain of Ethylene Acrylic Elastomer across the global market".