Thermoplastic Elastomer Prices Show Stable Patterns in the US and EU at the Start of June
- 09-Jun-2023 3:34 PM
- Journalist: Nicholas Seifield
The price of Thermoplastic Elastomer (TPE) witnessed a stable trend in the US domestic market due to the weak fresh orders received from the downstream automotive industry. The demand for the product remained unchanged and had a sufficient supply to meet the requirements of the domestic market. Additionally, the feedstock Styrene prices remained stable, which helped the cost support to the derivative industry, including TPE. Over the past seven days, the automobile manufacturing industry has soared, and the consumption of TPE in this industry was strong in the US market. The new orders for TPE from both domestic and overseas markets fell as the firm noted challenges securing new business as customers continued to work through their existing stocks.
The automobile industry has come a long way in its recovery, but there are still many challenges to overcome. Participants in the market claim that the second half of 2023, rising interest rates, and impending economic challenges all put doubt on the industry's sales momentum. This indicates that the demand for TPE in the automotive industry is likely volatile in the US market.
According to ChemAnalyst, the cost of TPE hovered around USD 5600/MT on a FOB Chicago basis during the week ending 02nd June 2023.
In the Belgium market, the price of TPE has also followed the same price pattern during the last week due to the no significant orders received from the automotive industry. Over the last week, the downstream automotive operations have not moved much, and the demand for TPE subdued in the market. Further, styrene prices showed a declining trend that influenced the TPE value in the Belgian and other Eurozone markets.
In Eurozone, the manufacturing Purchasing Manager's Index (PMI) showed a declining trend in May 2023 compared to previous months, which indicates that the total business almost stagnated in May, with new orders sales falling for 15 months in the market.
ChemAnalyst reports that the cost of TPE was settled at USD 3950/MT on a FOB Antwerp basis during the week ending 02nd June 2023.
It is expected that the price of TPE is likely to bumpy path in the US and Europe regions due to the several factors impacting the automotive and other industries in the market. The automotive industry sales in the second half of the year may experience some volatility as a result of the strengthening economic headwinds. The high-interest rates and tight monetary conditions in both regions might affect the growth of the economy.
