US Thermoplastic Elastomer Continues its bull run in May 2022
- 12-May-2022 4:48 PM
- Journalist: Gabreilla Figueroa
The Global Thermoplastic elastomer market has been going through significant upheaval, and the North American region has been no different. In the latest turn of events, US Thermoplastic Elastomers (TPE) market has come under significant cost pressure. The price increases by key manufacturers have come as a no-brainer for the consumers.
While the European region has been under a severe spell of inflation which has increased the cost of production via soaring energy prices and climbing raw material costs, the US market has been dealing with its issues with additive shortages and skyrocketing energy prices as reported by several key market participants. However, both Europe and US region will concur about the rising feedstock prices. Consequently, all major categories of Thermoplastic Elastomer have gained consistently in the last few weeks.
In the US, Thermoplastic Elastomer prices were assessed at USD 7425 per MT on a FOB basis as of the week ending 6th May 2022. Dupont, one of the key producers in the region, has reported that the rising cost of production has been a primary factor determining pricing dynamics; meanwhile, energy costs continue to surge upwards. As of the first week of May, Natural gas, a key source of energy and power, has witnessed prices breaching the USD 8/MMBTU. Cost inflation owing to logistics, raw materials, and energy prices continue to offset the pricing sentiment, remarked a representative from Dupont. Meanwhile. Demand dynamics continue to remain upbeat as the US economy consolidates further. Consumption from the construction industry has risen sharply in the last few weeks while demand from automotive and electricals & electronics has been stable to firm.
Among Thermoplastic Elastomers, Polyurethane Thermoplastic Elastomers have been haywire owing to volatility in the Polyurethane market, while Styrenics and Polyester TPE prices have risen persistently since the beginning of March 2022.
As per ChemAnalyst, “Thermoplastic elastomer market may observe a change in momentum and market may turn bearish towards the end of Q2 and early Q3, however, in the short-term pricing dynamics are expected to remain bullish on the back of high-cost inflation.”