For the Quarter Ending March 2025
North America
In the first quarter of the year, the U.S. market for Ethylene Acrylic Elastomer (AEM) experienced a slight decline of 0.86% quarter-over-quarter, with prices moving lower by March. Initially, prices held steady in January, supported by a balanced supply and stable demand from the aerospace sector, despite weaker consumption in the automotive sector.
The market saw a moderate rise in February as Ethylene prices increased and demand from key industries, like automobile and aerospace, remained stable, although the construction sector showed mixed performance. However, by March, a combination of falling feedstock costs, particularly Ethylene and Acrylic Acid, alongside cautious downstream purchasing, led to a price decrease. While strong automotive sales supported baseline demand, the general sentiment remained cautious, with buyers reluctant to restock aggressively in anticipation of further price softening.
Despite challenges such as delayed deliveries and inflationary pressures, steady supply and consistent inventory levels helped maintain a stable market environment. The quarter ended with moderate demand and a slight downward price adjustment, reflecting the impact of lower input costs and selective procurement strategies among buyers.
APAC
During Q1 2025, the Indian Ethylene Acrylic Elastomer (AEM) market experienced a marginal quarter-on-quarter price increase of 0.50%, shaped by fluctuating sourcing dynamics and demand patterns. In January, the market faced downward pressure due to reduced sourcing costs from Asian exporters, easing freight rates, and abundant supply, which intensified price competition. However, February saw a shift, as higher procurement costs from overseas markets and a weakening rupee prompted suppliers to raise prices amid tight supply and heightened operational expenses. March brought a partial correction with reduced import offers from the US and favorable exchange rate movements, yet steady demand from the automotive and aerospace sectors provided a floor to the decline. Supply conditions remained largely stable throughout the quarter, with consistent shipments ensuring market balance. On the demand front, the automotive industry showed resilience despite monthly fluctuations, while aerospace continued to outperform, buoyed by robust defense investments and rising private-sector participation. Supportive macroeconomic policies, including repo rate cuts by the Reserve Bank of India, added momentum to industrial activity. With steady demand and moderate cost pressures, suppliers managed pricing cautiously, resulting in a mild net uptick for the quarter.
Europe
In the first quarter of 2025, the European market for Ethylene Acrylic Elastomer (AEM) experienced a slight quarter-on-quarter decline of 0.82%. Despite stable supply dynamics, with steady production and import flows, the demand remained weak, particularly from the construction sector, which continued to face a downturn due to fewer new projects and reduced material requirements. The automotive and aerospace sectors provided some support to overall consumption, but their contribution was not enough to offset the broader sluggishness in industrial activity. Logistical challenges persisted, particularly in key European ports like Hamburg, which saw delays due to labor strikes and congestion, but these disruptions were largely mitigated by pre-booked shipments and alternative distribution routes. A stronger Euro also helped reduce import costs, slightly easing price pressures. The European Central Bank's interest rate cuts in January provided some optimism for future demand recovery, but broader macroeconomic concerns, such as inflationary pressures from global trade dynamics, kept market sentiment cautious. With the construction sector underperforming and the aerospace and automotive sectors only providing moderate support, the market outlook for AEM in the first quarter of 2025 reflected limited growth, resulting in a slight decline in prices.
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.
