For the Quarter Ending June 2025
North America
• Ethylene Acrylic Elastomer (AEM) Price Index declined by 5.4% QoQ in Q2 2025, reflecting prolonged demand weakness in the automotive and construction sectors.
• Spot prices dropped amid sluggish procurement trends and high inventory levels, despite stable production and freight operations.
• Production cost trends eased due to falling Ethylene feedstock prices, allowing suppliers to lower prices while maintaining margin stability.
• The demand outlook remained pessimistic, particularly with a 14.27% drop in June auto sales and continued construction sector contraction.
• Suppliers scaled back dispatches and adjusted price forecasts downward, focusing on customer retention amid soft market sentiment.
Why did the price of AEM change in July 2025 in the U.S.?
• AEM prices are expected to rise in the coming months as suppliers anticipate a gradual recovery in demand from the automotive and construction sectors, along with efforts to restore margins amid tighter supply conditions.
• Suppliers revised pricing to secure orders and manage inventory as export activity also slowed.
• Production remained stable, but the lack of restocking interest led to conservative pricing.
• Improving export orders from China and easing tariff-related uncertainties are likely to lift market sentiment and support a potential increase in AEM prices.
Europe
• AEM Price Index fell by 5.2% QoQ in Q2 2025, amid weak downstream demand and favorable import dynamics.
• Spot prices softened as a stronger Euro lowered the cost of U.S. imports, even as regional production remained stable.
• Demand outlook remained under pressure, especially from construction and automotive sectors in Germany and France.
• Despite stable supply, suppliers lowered offers due to high inventories and weak offtake from OEMs and Tier-1 manufacturers.
• The price forecast suggests further downside risk unless major downstream sectors recover in Q3 2025.
Why did the price of AEM change in July 2025 in Europe?
• AEM prices are expected to rise in the coming months as signs of recovery emerge in the automotive sector and anticipation of recovery in the economic performance.
• Imports While imports may stay steady, a weaker Euro could make foreign-origin AEM less competitive, favouring domestic supply.
• Sellers adjusted offers upward to maintain competitiveness as buyer interest gradually improves.
• Potential firming in feedstock costs may also add upward pressure, limiting room for flexible pricing strategies.
Asia Pacific (Thailand)
• AEM Price Index dropped 5.2% QoQ in Q2 2025, pressured by weak demand and a stronger Thai Baht lowering import costs.
• Spot prices fell due to soft domestic demand in construction and manufacturing, despite a marginal improvement in production.
• Supply remained stable, with U.S.-origin imports arriving regularly and no major logistical disruptions reported.
• The demand outlook remained muted as real estate and home appliance activity failed to recover meaningfully.
• The price forecast remains subdued for Q3 2025 unless public infrastructure investments significantly increase AEM consumption.
Why did the price of AEM change in July 2025 in APAC?
• AEM prices are expected to rise in July 2025 amid early signs of recovery in private construction and gradual improvement in appliance sector activity.
• Despite improved port logistics and consistent shipments, buyers refrained from fresh orders.
• With port operations running smoothly and inventories starting to normalize, sellers are likely to scale back discounts.
• Rise in the Ethylene cost is stimulating the cost of the AEM towards upside.
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.
Frequently Asked Questions (FAQs):
Q1: What is the current price of AEM?
As of June 2025, the AEM Price Index in the U.S. is USD 14,800/MT FOB-USGC, with similar declines observed globally.
Q2: Who are the top AEM producers globally?
Major AEM producers include DuPont, and Zeon Corporation.
Q3: What sectors drive demand for AEM?
Key sectors include automotive, construction, appliance manufacturing, and aerospace, where AEM is valued for its heat and oil resistance.
