For the Quarter Ending June 2021
North America
Ethylene Acrylic Elastomer supplies in the North American region were better in Q2 despite continued production lags due to extended delays in the plant start up maintaining supply side pressure. Stronger upstream and downstream operations raised the market sentiments in Q2. The regional price uptrend remained buoyed by high upstream costs and squeezed market supplies. DuPont surged the production rates at its AEM rubber facilities as the enquiries were consistent and the orders were piled up since the previous quarter. Demand surged with persistent offtakes from the downstream tire and automotive sector despite the reduced production of Automobiles amidst the semiconductor shortages. As a ripple effect AEM pricing trend in the North American region remained sturdy in the second quarter of 2021.
Asia Pacific
Despite the severely dull market of downstream automotive sector in India, Ethylene Acrylic Elastomer (AEM) price trend observed an unexpected up stride taking cues from firmer upstream rates and raised international offers. Ex-Depot Mumbai discussions were assessed at USD 10672 per tonne in June. Whereas in China, the rising commodity inflation rate and firmer raw material Ethylene raised the Chinese AEM offers. Strong economic rebound supported the demand outlook from the automotive and consumer goods industry. However, affected port operations in South China due to surge in COVI cases kept some shipments stuck. The addition of new crackers in China provided the ample upstream availability to keep the production rates of the AEM rubber smooth in the second quarter of 2021. Demand was consistent from the automotive and consumer goods sector.
Europe
Ethylene Acrylic Elastomer supply conditions in the European region improved with better operating rates in the refineries and crackers after the winter season. Better feedstock availability kept the run rates in the facilities smooth. Better import volumes from the US and Asian region further supported the supply outlook in the European market. Demand remained persistent from the downstream automotive and consumer goods sector which gained pace with the vaccine roll out and economic rebound. As a ripple effect, AEM prices in the European market maintained a firm stance in the second quarter of 2021
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For the Quarter Ending March 2021
North America
The North American Ethylene Acrylic Elastomer (AEM) market remained sluggish as the demand from the automotive sector declined in the quarter as the auto production was hindered due to limited supplies of AEM. The supplies were tight throughout the quarter because of the extreme weather conditions. As a repercussion of the calamity, nearly 70% of Ethylene capacity went offline in US, followed by the ruptured pipelines which extended the production turnarounds till next quarter in several plants. DuPont surged the prices of AEM for April deliveries by USD 500 per MT, as nearly all crackers resumed operations by nearly 80%.
Asia Pacific (APAC)
Supplies in the APAC region improved during the first quarter of 2021, as the turnaround in several plants in Northeast Asian region ended, easing the availability of cargoes in several countries. However, significant constrained were witnessed as the imports to the region declined amid high freight charges and global shortage of upstream Ethylene. Demand surged as the offtakes were greatly impacted in a positive manner from the recovering automotive industry. Consequently, prices of AEM surged amid constrained supplies, FOB Shanghai prices averaged at USD 10810 per MT throughout the quarter.
Europe
The European market remained sluggish during the Q1 of 2021, as the supply shortage were witnessed due to the limited availability of the upstream products as the refineries in US were operating at low production rate due to extreme weather conditions. Crude imports significantly declined in the region due to the limited public movement amid the lockdown in several parts across the region. Price trend in Europe overall remained up due to the limited availability.
For the Quarter Ending December 2020
Asia
Supplies slowed during Q4 of 2020, due to increased consumption of Ethylene Acrylic Monomer (AEM) from the automotive sector. Tight supply of AEM was exacerbated by the scheduled turnarounds in the feedstock plants in North-east Asian region. The demand witnessed an enormous surge after the restrictions were uplifted from various region followed by the revival of automotive sector. Steep increment in the global freight rates followed by the supply tightness led to hike in AEM prices in the Asia Pacific region. Consequently, AEM prices in India averaged at USD 10708 per tonne in Q4 2020.
Europe
During Q4 of 2020, the prices of Ethylene Acrylic Elastomers surged proportionally with the pricing trend of the feedstock. The supplies were tight due to the limited container availability across the globe which caused tremendous fluctuation in its prices. In the first half of Q4 2020, the regional economy started to recover with the resumption of commercial and industrial activities followed by improved consumption from the automotive sector. However, the lockdown imposed across several countries created uncertainties regarding the procurement of AEM.
North America
The supplies remained limited during the first half of Q4, after a major slump in feedstock Ethylene availability amid the hurricane season in the Gulf region. The Hurricane season in the gulf region caused power disruptions, which hindered the production efficiency. The demand surged amid the improved consumption from the recovering automotive sector. Thus, prices of AEM surged due to the supply shortage and rich values of feedstock Ethylene.
