The global Thermoplastic Elastomer (TPE) market in early June 2025 displayed sharp regional divergences, with the U.S. posting robust price gains driven by a surging automotive sector, while China grappled with worsening port congestion and weakening manufacturing activity. Meanwhile, Europe navigated a fragile recovery as logistics disruptions and policy tensions weighed on supply chains.
• North America: U.S. TPE Market Climbs Amid Automotive Boom and Supply-Side Pressures
In a powerful display of demand-side resilience, U.S. TPE prices surged across the first two weeks of June. Prices rose 0.33% in Week 1 despite a 2.80% decline in feedstock styrene, bolstered by soaring automotive sales. 1.46 million unit’s previous month June alone and continued healthcare demand for TPV and TPE in medical devices.
By Week 2, TPE export prices (FOB Chicago) jumped 1.96%, driven by a 7.46% feedstock price hike amid a sudden strike that disrupted styrene supply. Innovation in athletic footwear, particularly the adoption of EVA-OBC blends further supported downstream demand. Despite healthy fundamentals, rising input costs signal inflationary risks ahead.
• APAC: China Faces Bottlenecks as India Maintains Stable Ground
In China, the TPE market revealed duality: stable prices in Week 1 were quickly followed by a 0.46% decline in Week 2. Feedstock styrene prices dropped 1.84%, but the more pressing concern was severe port congestion. Vessel queues at Shanghai and Ningbo grew from 146 to 153, slowing TPE exports and creating inventory bottlenecks.
Despite these hurdles, China’s booming electric vehicle market 706,000 passenger units sold previous month, with a record 57% NEV penetration helped offset declining industrial momentum. Meanwhile, India’s TPE market stood resilient. Prices (CFR JNPT) held steady as adequate inventories though delayed Chinese shipments. Contract renewals rather than fresh orders defined sentiment, but improving business confidence suggested gradual demand growth.
• Europe: Supply Constraints Cloud a Fragile Recovery
Europe’s TPE market continues to walk a tightrope. Germany witnessed a 0.29% drop in Week 1, attributed to a 3.45% styrene cost decline and softer car sales. Port disruptions in Hamburg and rail service interruptions added to the woes, limiting exports. Week 2 brought price stability despite another 7.32% fall in feedstock prices, as producers held firm on margins.
Belgium witnesses a 0.41% price dip in Week 1 due to weak demand and mounting congestion at Antwerp port. Though prices stabilized in Week 2 on the back of German and Italian buying interest, supply chain stress remains. The upcoming June 25 strike and two crane outages at Q869 terminal pose continued export risks.
ChemAnalyst anticipates the industry heads into the second half of 2025, agility in navigating logistics, input volatility, and regulatory shifts will be critical. Markets with diversified sourcing and stable domestic demand, such as the U.S. and India, may outperform amid ongoing global turbulence.
