For the Quarter Ending December 2022
North America
Ethylene Acrylic Elastomer prices have witnessed an upward trend in the USA market throughout the fourth quarter of 2022 owing to the high inflationary pressure and volatile energy prices. In terms of domestic production, operating rates remained under check due to the stagnant consumption from the downstream industries. Demand from the downstream automotive and other competitive industries has improved slightly in the domestic market, while the limited material availability led to the price increase in the domestic market. On the other hand, Demand from the overseas market has remained on the stable to weak side as the West faced soft buying sentiments. Hence, prices of Ethylene Acrylic Elastomer FOB USGC were settled at USD 3335/MT during December.
Asia-Pacific
Ethylene Acrylic Elastomer prices have shown a fluctuating trend in the Japanese market during the fourth quarter of 2022. During the first month, Ethylene Acrylic Elastomer prices dropped due to sufficient material availability and weak Demand from the downstream automotive industry. Although, during the last two months of the quarter, Ethylene Acrylic Elastomer prices have rebounded. Domestic production rates have improved in the wake of improved buying sentiment. On the other hand, Demand from the downstream automotive and other competitive industries has improved marginally in the domestic market. Meanwhile, Demand from the overseas market has also been stable, while inadequate inventory level has forced the manufacturer to raise their price quotation. As a result, prices of Ethylene Acrylic Elastomer FOB Tokyo were settled at USD 2200/MT during December.
Europe
Ethylene Acrylic Elastomer has witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first month, Ethylene Acrylic Elastomer prices decreased owing to the sufficient inventory level and weak demand dynamics. Feedstock Ethylene and Acrylic monomer prices dropped, resulting in the low production cost of the Ethylene Acrylic Elastomer. However, during the last two months, Ethylene Acrylic Elastomer prices increased. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. However, the market transactions have operated at low levels as the inflationary pressures have impacted the downstream Demand. Meanwhile, imports from USA and Asia faced port congestion in key major trading ports of Rotterdam, Amsterdam, and Antwerp. Meanwhile, Germany faced labor unrest, and logistics remained under pressure, which restricted the material available in the regional market. In conclusion, prices of Ethylene Acrylic Elastomer CFR Hamburg were settled at USD 3845/MT during December.
For the Quarter Ending September 2022
North America
Ethylene Acrylic Elastomer prices have gained a downward trend in the US Market throughout the third quarter of 2022, supported by the sufficient inventory level coupled with weak demand. The speculation of recession across the US market has dampened the demand from the downstream automotive industries. In addition, feedstock Ethylene and Methyl Acrylate have further dropped, which supported the Ethylene Acrylic Elastomer to follow the downtrend in the regional market. Furthermore, the ease in the upstream Natural gas prices has reduced the production costs of Ethylene Acrylic Elastomer across the regional market. Also, the downstream market players have reported large stockpiles of unsold inventory, resulting in a cheaper spot market for Ethylene Acrylic Elastomer. Thus, in the USA, prices of Ethylene Acrylic Elastomer FOB USGC were assessed at USD 2785//MT during August.
Asia- Pacific
Throughout the third quarter of 2022, Ethylene Acrylic Elastomer prices have continued to fall in the Asian market. The latest decline in the price was due to the sufficient availability of the product in the regional market. High inflation has slumped the demand from the downstream automotive industries. At the same, demand from the overseas market, mainly from China, has reduced due to the uncertainties. In addition, Japan's manufacturing activity has persistently dropped, and PMI has shifted from 51.5 to 50.8 in September, compared with August. Also, the inflows of new orders have plunged due to the low inquiries of the Ethylene Acrylic Elastomer. Thus, in Japan, Ethylene Acrylic Elastomer FOB Tokyo prices were assessed at USD 1870/MT during September 2022.
Europe
Ethylene Acrylic Elastomer has continued its bearish rally in the European market throughout the third quarter of 2022 owing to the low cost of the raw material Ethylene and Methyl Acrylate prices. Further, due to commodity inflation, market dullness is occurring in the market as the consumers want to invest only in basic needs. In addition, domestic production costs remain elevated amid mounting energy and operating costs, resulting in weak output rates. Despite this, steady flows of cheaper imports from Asia and the North American region have led to the price decline in Europe. On the other side, the European region has had logistics limitations as port congestions in Hamburg and Bremerhaven and dropping Rhine levels have threatened European supply chains. Meanwhile, Europe continued to face labor unrest, and logistics remained under pressure; hence, as a result, in Germany, prices of Ethylene Acrylic Elastomer CFR Hamburg were quoted at USD 2904/MT with a week-on-week decline of around 1.9% during September.
In North America, prices of Ethylene Acrylic Elastomer have observed stagnancy during the second quarter of 2022 on the back of the firm cost pressure coupled with the stable to weak demand from the regional market. In addition, raw material Ethylene and Acrylic monomer prices have remained steady in the regional market as crude oil prices observed limited to no volatility despite skyrocketing Energy cost prices in the North American market. Furthermore, Ethylene Acrylic Elastomer manufacturers have kept the operating rates in stable ranges; meanwhile, market participants have reported a conservative procurement approach amid growing uncertainty around the downstream demand. Also, the automotive industry has witnessed stagnancy in growth and, consequently, has kept the consumption rates in the weak to the stable range. As a ripple effect, prices of Ethylene Acrylic Elastomer FOB UGSC were settled at around USD2856/MT with a slight increment of nearly 0.6% during June.
During the second quarter of 2022, the supplies of Ethylene Acrylic Elastomer remained balanced as operating rates at several manufacturing plants picked up to meet the downstream end-use demand, but some constraints were witnessed amid the monsoon season in India. A surge in consumption of automotive lubricants was seen positively impacting the Ethylene Acrylic Elastomer in India. Demand was consistent from the downstream automotive sector, and better offtakes were reported with the rebound in the automotive sector. Additionally, volatile crude oil has impacted the raw material cost, has the other factor for stable prices. As a ripple effect, prices of Ethylene Acrylic Elastomer CFR JNPT were assessed at around USD 153900/MT during June.
In contrast to the last quarter of 2022, Ethylene Acrylic Elastomer showed a stable market sentiment in Europe during the second quarter of 2022. In addition, the availability of feed with the manufacturers to cater to the offtakes in the domestic market caused market dullness in Germany. Furthermore, volatile crude oil has impacted the raw material cost, has the other factor for stable prices. Also, Demand for Ethylene Acrylic Elastomer in the automotive industry has remained consistent. However, the tight supply of raw materials, labour shortage, and trade route disruption amidst the Russia-Ukraine war have impacted the Ethylene Acrylic Elastomer prices across the regional market. As a result, in Germany, prices of Ethylene Acrylic Elastomer CFR Hamburg were assessed at USD 3045/MT during June compared to the previous month.
