The world Thermoplastic Elastomer (TPE) market in early July 2025 was relatively unchanged in major regions despite falling feedstock prices, port delays, and shifting trade patterns. Key market producers held back against price decreases to guard margins despite divergent trends being observed in downstream sectors, led by the automotive industry.
• North America: Margin Defense Amid Demand Softness
In the US, TPE producers sustained level pricing as feedstock styrene prices decreased by 1.96%. The action was to cushion profitability as demand weakened, particularly from the automotive industry, whose yearly car sales reduced from 17.6 million in April to 15 million towards the end of June. Retail sector volatility piled on, with big brands threatening tariff-driven cost increases and bankruptcies signaling demand pressures. Nonetheless, the U.S. continued to serve as a re-export hub, supplying TPE—some of it imported from Europe—to markets in Latin America and Africa.
• Asia-Pacific: Mixed Demand Signals and Supply Realignment
Styrene prices dropped 3.96% in China, while TPE export prices remained unchanged. The automotive industry offered a boost, with sales of cars rising 18.6% year-on-year last month, led by electric and hybrid vehicles. Meanwhile, export distortions strengthened amid port congestion, impacting Southeast Asia deliveries. At the same time, government-sponsored domestic reforms were intended to spur consumption amidst deflationary pressures.
India witnessed a modest 0.37% fall in TPE import prices. Automotive retail sales fell 9.4% month-to-month in June because of overhangs of stocks, supply constraints, and geopolitical disturbances. The Indian government retaliated with proposed counter tariffs under WTO norms in response to U.S. auto part duties, indicating increased trade tensions. To counter China supply risk, India boosted South Korea and Thai sourcing.
Malaysia recorded steady TPE prices for the fourth successive week with foreign buyers keeping a careful eye on risks in tariffs globally. In turn, national trade policies focused on intra-ASEAN cooperation and diversified imports. The administration chose long-term economic strength over quick countermeasures, including alternative sourcing outside of China.
Vietnam also kept TPE prices firm, but recently levied U.S. tariffs 20% on Vietnamese and 40% on re-exported Chinese-origin items—put pressure on local downstream supplier. Large brands with Vietnamese manufacturing bases started reconsidering their sourcing geographies. TPE Imports from Japan and Brazil were resilient despite these challenges until late June.
• Europe: Demand Resilience and Export Disruptions
Germany maintained TPE prices in spite of a 3.54% fall in feedstock prices. Automotive activity was steady, with electric car sales increasing Battery EVs EVs +9%, Plug-in Hybrids +66%as overall car registrations fell as a result of last year's regulatory spike. Demand linked to infrastructure improved modestly, while TPE export activity was held back by continued congestion at Hamburg port.
There was no TPE price change registered in Belgium for the week. Downstream demand experienced moderate recovery, especially in passenger and fleet car sales—June registrations improved 20.94% month-on-month—while excess inventories restrained price pressures. Chronic congestion at the Port of Antwerp, compounded by labor shortages and continuous terminal maintenance, continued to affect waterborne freight.
ChemAnalyst anticipates TPE prices to stay generally steady during the next week. European and Asian export bottlenecks will continue to be a dominant concern, while Asian shifts in sourcing—India and Vietnam—are going to frame trade flows. There won't be a steep demand spike, but regional resilience policies and changing supplier networks will determine short-run dynamics.
