Polyolefin Plastomer Prices Dip in September 2023 Despite Increased US Auto Sales

Texas, USA: In a surprising turn of events, the price of Polyolefin Plastomer experienced a marginal decline of 1.5% in September 2023, despite a notable upswing in demand from the domestic automotive industry in the United States and a significant increase in olefin prices. The automotive industry in the United States witnessed a robust performance in September, with new vehicle sales reaching a total of 1.33 million, generating strong demand for Polyolefin Plastomer. This surge in sales is particularly significant given the ongoing coordinated strike by the United Auto Workers (UAW) union against the Detroit Three automakers, which had raised concerns about potential supply disruptions in the current quarter. Despite these challenges, consumer demand for automobiles remained strong, contributing to the positive sales figures and positively impacting the Polyolefin Plastomer market.

The top global automakers reported a rise in US new vehicle sales for the third quarter amid resilient demand for the latest models and improved supplies. However, inquiries for Polyolefin Plastomers plunged from the global market as the European construction industry faced challenges. High interest rates and soaring building costs have overshadowed the European Union (EU) construction industry. As per market reports, these factors have brought an end to growth in the EU's construction sector and are likely to lead to a decline in the coming year, which is expected to cause a further plunge in Polyolefin Plastomer prices.

The report highlighted that the EU's construction sector in 2023 ultimately achieved zero growth, backed by a better-than-expected first half of the year, impacting the offtake of Polyolefin Plastomer. The volume of construction work remained high, with companies having approximately nine months of guaranteed projects at the start of the third quarter. However, in recent months, the European construction sector showcased looming market performance. Furthermore, market analysts predict that the European construction sector's outlook seems negative, which has significantly impacted the demand for Polyolefin Plastomers. Investors and homebuyers are displaying reluctance to invest further capital while inflation and interest rates remain elevated and economic growth remains low or negative. This cautious approach is impacting the construction value chain, with sharp production declines observed in materials like cement, bricks, and concrete, which are fundamental to the construction process, eventually casting a shadow on the Polyolefin Plastomer market.

In summary, despite the strong performance of the US automotive industry, reflected in rising new vehicle sales and resilient consumer demand, the price of Polyolefin Plastomer experienced a decline as the European construction industry is grappling with stagnant growth and potential contraction due to high interest rates, escalating building costs, and cautious investor sentiment.