For the Quarter Ending March 2025
North America
• The Ethylene Acrylic Elastomer (AEM) Spot Price in North America fell slightly in Q1 2025, with a 0.86% quarter-over-quarter decline in the Price Index.
• In January, the Ethylene Acrylic Elastomer (AEM) Price Index remained steady due to balanced supply and stable aerospace sector demand, despite weak automotive performance.
• February saw a brief increase in the Price Index, supported by stronger Ethylene prices and firm demand from key end-use sectors.
• By March, the Ethylene Acrylic Elastomer (AEM) Price Index dropped due to declining feedstock costs (Ethylene and Acrylic Acid) and cautious procurement behavior.
Why did the price of AEM change in April 2025 in the US?
• In April 2025, the Ethylene Acrylic Elastomer (AEM) Price Index decreased further as input costs continued to fall and demand remained steady but not robust, especially from automotive buyers.
• The Ethylene Acrylic Elastomer (AEM) Production Cost Trend in Q1 showed a downward shift, primarily influenced by falling raw material prices.
• The Ethylene Acrylic Elastomer (AEM) Demand Outlook remains moderate, with aerospace and automotive offering stable but unspectacular support.
• The Ethylene Acrylic Elastomer (AEM) Price Forecast for the next quarter is stable to slightly weak, as demand recovery is uncertain and cost pressures ease.
APAC
• The Ethylene Acrylic Elastomer (AEM) Spot Price in the APAC region, especially India, saw a modest increase of 0.50% in Q1 2025.
• January witnessed a lower Price Index due to cheaper sourcing from Asian exporters, reduced freight rates, and ample inventory.
• February's Price Index rose as overseas procurement costs increased and the rupee weakened, prompting suppliers to raise prices amid tighter margins.
• In March, the Price Index corrected slightly due to lower US import offers and favorable forex trends, but demand remained firm in automotive and aerospace sectors.
Why did the price of AEM change in April 2025 in the Asia?
• In April 2025, the Ethylene Acrylic Elastomer (AEM) Price Index increased due to rising feedstock costs and improved demand, particularly from export markets and aerospace.
• The Ethylene Acrylic Elastomer (AEM) Production Cost Trend showed mixed movement, with increased operational costs in February and partial relief in March.
• The Ethylene Acrylic Elastomer (AEM) Demand Outlook remains optimistic, led by solid automotive and defence-sector performance and positive macroeconomic policies.
• The Ethylene Acrylic Elastomer (AEM) Price Forecast anticipates mild upward movement in Q2, supported by stable demand and possible feedstock cost escalations.
Europe
• The European Ethylene Acrylic Elastomer (AEM) Spot Price declined marginally by 0.82% in Q1 2025, indicating a softening Price Index.
• January and February reflected weak demand, especially from the construction sector, though automotive and aerospace demand partially offset this.
• March saw continued bearish sentiment due to logistical delays at ports, a stronger Euro (lowering import costs), and subdued market activity.
Why did the price of AEM change in April 2025 in the Europe?
• In April 2025, the Ethylene Acrylic Elastomer (AEM) Price Index declined further due to lackluster demand and lingering economic uncertainty.
• The Ethylene Acrylic Elastomer (AEM) Production Cost Trend was favorable due to reduced import costs and steady domestic output.
• The Ethylene Acrylic Elastomer (AEM) Demand Outlook is cautious, with weak construction offsetting moderate gains in aerospace and automotive segments.
• The Ethylene Acrylic Elastomer (AEM) Price Forecast suggests continued softness in prices unless construction activity improves, or downstream sectors show stronger recovery signals.
For the Quarter Ending December 2024
North America
The Ethylene Acrylic Elastomer (AEM) market in the United States witnessed a slight decline 2.92% in Q4 2024, driven by weaker demand dynamics and declining feedstock costs. Ethylene prices dropped significantly over the quarter, while Acrylic Acid prices remained subdued, contributing to reduced production costs for AEM manufacturers.
The automotive sector provided some stability, with vehicle sales showing consistent growth across the quarter. Preliminary figures indicated month-over-month and year-over-year increases in vehicle sales, showcasing resilience in this key downstream market. However, the aerospace sector continued to underperform, marked by decreased production and deliveries by Boeing, which faced challenges such as a major strike, intensified quality checks, and regulatory delays. Despite these setbacks, cautious optimism emerged with new orders for aircraft signaling potential recovery in the coming months.
On the manufacturing front, the US sector experienced subdued activity, characterized by lower new orders and production levels in December. Manufacturers remained proactive in managing inventory levels and adjusting production schedules to align with demand fluctuations. Supply conditions remained stable throughout the quarter, supported by adequate feedstock availability and strategic inventory management.
APAC
In the fourth quarter of 2024, the Ethylene Acrylic Elastomer (AEM) market in India witnessed a 2.60% decrease from the previous quarter. The market's dynamics were influenced by moderate demand trends and stable supply conditions across sectors. Despite the positive performance in sectors like aerospace, the automotive sector faced challenges, with vehicle sales seeing a decline in December, reflecting weaker market sentiment and inventory adjustments post-festive season. The automotive sector's subdued performance negatively impacted overall AEM consumption. On the supply side, the market remained well-stocked, with suppliers managing inventories effectively. Although there was no significant disruption in supply chains, the consistent inflow of imports and adequate stock levels ensured market stability. However, the overall slowdown in manufacturing activities, particularly in the automotive sector, and reduced demand in downstream industries contributed to the price reduction. While business confidence experienced a slight dip during the quarter, supported by lower feedstock prices and reduced bidding activity, there was optimism regarding future demand. The combination of slower demand growth, adequate supply, and manufacturers’ efforts to adjust production strategies led to a more balanced market, ultimately driving the overall price decrease.
Europe
The Ethylene Acrylic Elastomer (AEM) market in Germany experienced a gradual decline of 2.81% in prices during the fourth quarter of 2024, reflecting subdued market dynamics and sectoral performance. Demand from the automotive and construction sectors remained lackluster, with the former showing intermittent growth and the latter suffering from persistent underperformance. Automotive sales improved in October and November, but a decline in December dampened overall quarterly momentum. The construction sector faced significant challenges, including reduced new orders, political uncertainties, and ongoing job cuts, further limiting consumption of AEM materials. On the supply side, manufacturers maintained steady production levels, with ample inventories ensuring consistent market availability. Improved logistics, particularly at key ports, facilitated smoother supply chain operations, though sporadic congestion persisted. Suppliers adopted a cautious approach, aligning production with demand trends to avoid surplus stock. The aerospace sector offered a silver lining, with Airbus achieving notable deliveries and orders, providing some stability to AEM consumption. However, the overall economic environment in Europe, characterized by declining business confidence and concerns over U.S. trade policies, weighed on market sentiment.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region experienced a significant decline in Ethylene Acrylic Elastomer (AEM) prices, driven by several key factors. A balance in supply, coupled with diminished demand from crucial sectors such as aerospace, particularly due to disruptions in Boeing’s production and airline safety concerns, exerted downward pressure on prices.
These issues negatively impacted both orders and deliveries during the period, resulting in reduced AEM consumption. Conversely, the automotive sector displayed moderate performance, providing some support to overall demand. In the USA, where the most notable price fluctuations occurred, the pricing landscape followed a broader decreasing trend. Seasonal fluctuations and the influence of global economic conditions contributed to these price movements.
The quarter saw a 0.5% increase from the previous quarter, continuing a consistent downward trajectory, while reflecting a 1.71% decrease compared to the same quarter last year. At the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 FOB USGC in the USA was USD 13,350/MT, highlighting the prevailing negative sentiment in the market.
APAC
During Q3 2024, the Ethylene Acrylic Elastomer (AEM) market in the APAC region saw stable prices, with India reflecting the most notable price changes. Several factors influenced market prices, including balanced supply and demand dynamics and the overall importing price dynamics from the major exporter in the US market. Major economies in Asia, particularly China, Japan, and India, experienced positive demand from the downstream markets, especially in the automotive and aerospace sectors, which significantly supported overall AEM demand in the asian region. The market recorded a slight 0.64% increase compared to the previous quarter, alongside a 0.47% decrease from the same quarter last year, indicating a steady pricing environment. Seasonal trends and industry correlations helped maintain price stability throughout the quarter. Although notable plant shutdowns led to temporary supply chain disruptions, they did not significantly affect overall market stability. By the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR JNPT in India reached USD 1,176.68/MT, underscoring the prevailing stable pricing sentiment in the region.
Europe
In Q3 2024, the pricing environment for Ethylene Acrylic Elastomer (AEM) in Europe experienced a consistent decline of 0.70%. This decrease was mainly attributed to reduced demand in key sectors like automotive, coupled with ongoing global economic uncertainties. Despite this, positive demand from the aerospace sector continued to bolster overall AEM consumption which marked as the key factor in balancing the pricing dynamics of the AEM. Furthermore, supply chain disruptions—caused by tensions along shipping routes and lower supplier performance—added to the negative pricing trend. The Netherlands saw the most significant price changes during the quarter. Overall, the pricing trend displayed a negative correlation with earlier periods, underscoring the challenging market conditions. The quarter recorded a 0.47% price increase compared to the previous quarter, but a decrease of 0.82% when compared to the same quarter last year. By the end of the quarter, the price for Ethylene Acrylic Elastomer (AEM) in the Netherlands reached USD 14,100/MT CFR Rotterdam, marking the culmination of the modest downward pricing sentiment throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in North America experienced a downward pricing trend, primarily driven by several critical factors. A significant surge in feedstock prices, notably Ethylene and Acrylic Acid, placed marked pressure on AEM production costs. This quarter saw an increased demand from the automotive sector, which exhibited robust growth despite some contractions in aerospace. Furthermore, supply constraints due to ongoing Long Buildup activities among suppliers exacerbated the price increases.
The Panama Canal's draught restrictions also contributed to supply chain disruptions, adding to the logistical challenges faced by the market. Seasonal factors played a role, with Q2 typically experiencing elevated demand due to increased manufacturing activities. The price trend for the quarter showed an overall increase when compared to the previous quarter, which had recorded a decline of 1.8%.
Notably, the quarter concluded with the price of Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 FOB USGC in the USA reaching USD 13400/MT. This reflects a positive pricing environment throughout Q2 2024, marked by consistent increases influenced by feedstock costs, supply chain dynamics, and robust downstream demand, particularly from the automotive sector.
APAC
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in the Asia-Pacific (APAC) region experienced a marginal price decrease. The continuous climb in Ethylene prices, driven by Long Buildup activities, exacerbated production costs for AEM, thereby influencing the overall market pricing of AEM from April to June. The supply chain encountered disruptions due to tight inventories and supplier activities aimed at inventory accumulation, which also played a crucial role in driving prices higher. Focusing on India, the market witnessed the most significant price changes within the APAC region. The Indian market's pricing dynamics were heavily influenced by robust downstream demand from the automobile and aerospace sectors. The surge in manufacturing activities and positive business confidence contributed to the rising demand for AEM. The percentage change from the previous quarter was recorded at -2%, indicating a reversal trend in Q2, while the price comparison between the first and second half of the quarter showed a 1% increase, underscoring the consistent upward trajectory. The overall trends in India were marked by a positive pricing environment, reflecting strong market fundamentals and heightened demand pressures. As of the quarter's end, the price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR JNPT in India stood at USD 1175013/MT, indicating a robust market response to the prevailing economic conditions.
Europe
In Q2 2024, the Ethylene Acrylic Elastomer (AEM) market in Europe experienced notable price decreases, driven by several significant factors. The downward trend in AEM pricing was primarily influenced by lower demand from the automotive and other manufacturing sectors in the European market, coupled with increased freight charges and higher feedstock costs. Notably, the adequate supply conditions due to higher inventory availability and logistical bottlenecks further exacerbated the price fluctuations. The price of AEM in Germany saw a notable decrease compared to the first half of the quarter, evidencing a 2% decrease. In contrast with the lower economic performance the Aerospace sector demand has supported the price of the AEM to some extent from falling further. Furthermore, the market faced no disruptions due to occasional plant shutdowns in the respective period. Despite a -2% decrease from the previous quarter in 2024, the pricing sentiment remained largely positive throughout Q2. The quarter-ending price for Ethylene Acrylic Elastomer (AEM) MV 16.5-18.5 CFR Hamburg in Germany was USD 14190/MT.
Frequently Asked Questions (FAQs):
1. What is the current price of Ethylene Acrylic Elastomer (AEM)?
As of April 2025, regional Ethylene Acrylic Elastomer (AEM) Spot Prices vary, with North America by 0.86% and Europe by 0.82% experiencing slight declines, while APAC sees a mild increase by 0.5%.
2. Who are the top Ethylene Acrylic Elastomer (AEM) producers in the United States?
Major U.S. producers include DuPont, Zeon Chemicals, and ARLANXEO, who dominate the domestic AEM supply.
3. What is the Ethylene Acrylic Elastomer (AEM) Price Forecast for Q2 2025?
Prices are expected to remain stable to slightly bullish in APAC, and flat or weak in North America and Europe depending on demand recovery and feedstock trends.
4. How is the Ethylene Acrylic Elastomer (AEM) Production Cost Trend impacting global markets?
Globally, lower feedstock costs have reduced AEM production expenses in North America and Europe, while APAC faced varied cost movements due to forex and import conditions.
