For the Quarter Ending March 2024
North America
The North American Thermoplastic Elastomer market witnessed an increment of approximately 8% in the prices during the opening quarter of 2024, with market situation being primarily bullish.
Increments in the prices of the product are attributed to heightened production costs as prices of feedstock Styrene inflated by approximately 27% and prices of another feedstock Ethylene increased by 2%. The North American Thermoplastic Elastomer market is largely driven by the positive demand from the downstream automotive industry as sales continued to expand throughout the first quarter after witnessing a post festive dullness in January 2024.
Automotive sales across the US were recorded to have appreciated by 34% and more than 30% across the whole of North American market as the spring driving season neared and transactions continued to lay in the positive territory. Further indication of the robust demand in the automotive industry was the failure of anticipated price reductions by major manufacturers towards the quarter's end, maintaining pressure on automotive production. Moreover export conditions to also remained favorable as evidenced by surging automotive sales across the primary importing Canadian and Mexican markets.
Asia
The Asian Thermoplastic Elastomer market continued to witness a bearish market situation during the opening quarter of 2024 with prices depreciating by almost 6 percent during this quarter. The key reasons considered for the depreciations in the prices of the product were excess inventories in circulation amidst the moderate demand from East and Southeast Asian markets. Moreover, challenging weather conditions, across East China and Shanghai led to stockpiling of inventories, coupled with heightened freight charges which prevented the suppliers from exporting to merchants based in North America and Europe. Moreover, post festive Chinese Lunar New Year also witnessed expanded manufacturing activities amongst Asian suppliers, who lowered prices to attract buyers. Despite ample support from the feedstock Styrene and Ethylene prices, which appreciated by approximately 12 percent, the Chinese Thermoplastic Elastomer was primarily driven by low demand from the Southeast Asian market and a hesitation amongst suppliers for restocking activities after the post festive Chinese Lunar New Year.
Europe
The prices of Thermoplastic Elastomers have witnessed a minor increment of approximately 1% across the European market during the opening quarter of 2024. The increments in the prices of the product were attributed to the increase in the prices of feedstock Styrene, which rose by approximately 45%. Further, during this timeframe, prices of another feedstock Ethylene surged by approximately 28% thereby resulting in heightened production costs. Complementing the production costs, prices of feedstock upstream Benzene also surged by approximately 44%, resulting in heightened production costs for Styrene. In terms of demand, the demand from the downstream automotive industries gradually improved after the post-festive dullness experienced during the beginning of the year. Despite automotive sales gradually increasing during the latter period of the quarter, the demand for the product remained mostly moderate. The prime reason for the moderation of the prices of the product was attributed to consumer preferences, transitioning towards EVs and battery-operated vehicles. This proved to be detrimental to the European Thermoplastic Elastomer market as EV shares in the automotive market increased by 16% on a quarterly basis.
For the Quarter Ending December 2023
North America
Throughout the fourth quarter of 2023, the North American Thermoplastic Elastomer (TPE) market displayed a predominant state of stability.
Prices of feedstock Styrene and Ethylene remained consistent, despite the oscillating trends in upstream crude oil prices. The demand from the downstream automotive industry exhibited stability, experiencing limited increments. The purchasing sentiments of the local populace remained largely constrained, influenced by a continuous increase in interests for the tenth consecutive month. Persistent strikes by the United Auto Workers also contributed to the constrained demand. As the USA approached the peak festive season, substantial increments in automotive sales were witnessed, with further appreciation anticipated. The trend and seasonality of the USA's TPE market remained stable, with no significant changes.
The easing of production costs, driven by depreciating prices of Styrene and Ethylene, was effectively counterbalanced by the high demand from the automotive industry. Notably, automotive sales surged by almost 13% in December 2023. The percentage change in the price from the same quarter of the previous year was recorded at -5%, and there was no alteration in the price percentage comparison between the first and second half of the quarter. The latest price of Thermoplastic Elastomer (TPE) FOB Chicago in the USA for the current quarter stands at USD 5443/MT. In summary, the North American TPE market in Q4 of 2023 was influenced by moderate supply, stable demand, and consistent feedstock prices.
APAC
In the APAC region, the fourth quarter of 2023 presented a varied market scenario for Thermoplastic Elastomer (TPE). Prices underwent alternating trends, initially experiencing a bearish situation in October, followed by a bullish phase in November, and concluding with another bearish situation in December. The product's moderate supply encountered high demand from the automotive industries in Japan and South Korea, contributing to price increases, further amplified by the festive season in the Southeast Asian market. Anticipated price declines were attributed to the devaluation of feedstock Styrene and Ethylene, resulting in lowered production costs, coupled with reduced energy prices. China, exhibiting notable price fluctuations during the quarter, maintained a moderate market situation characterized by stable prices and moderate supplies. However, an increase in production costs driven by rising feedstock prices led to price appreciation. Analyzing China's market, the trend, seasonality, and correlation price percentage were determined to be bullish. The percentage change in prices from the same quarter of the previous year was -7%, with a -8% change from the previous quarter. The price percentage comparison between the first and second half of the Chinese quarter was -1%. The latest quarter-ending price of Thermoplastic Elastomer (TPE) EXW-Qingdao in China was recorded at USD 2317/MT.
Europe
The European Thermoplastic Elastomer (TPE) market experienced a mixed sentiment, initially displaying a bullish trend with a 1.3% increment at the beginning of the fourth quarter of 2023. However, this was followed by a depreciation of approximately 1.6% in November and December 2023. The demand from the automotive industry was initially weak, influenced by declining prices of feedstock Styrene and Ethylene, as well as upstream Crude Oil, which was expected to ease production costs. Despite these factors, the price incline was primarily attributed to a mild shortage in Thermoplastic Elastomer supplies. The overall contraction of approximately 1.1% in industrial chemical production across Europe played a role in creating a bullish market situation for Thermoplastic Elastomers. Supplies dwindled amidst modest demand for exports. However, as November 2023 commenced, the market transitioned to a bearish situation, driven by low demand from the automotive sector and a decline in exports to both European and Asian markets, contributing to a decrease in prices.
For the Quarter Ending September 2023
North America
The North American market witnessed a largely bullish trend for the prices of Thermoplastic Elastomer, which increased by almost 5% in the third quarter of 2023. This was largely due to increasing costs of feedstocks Styrene and Ethylene, which also rose by almost 15% throughout the same quarter. Demand of Thermoplastic Elastomers from the downstream construction industry was poor as the performance of the construction industry was disappointing. Construction activities were largely halted across the US, with mortgage rates reaching almost 7% towards the end of the third quarter of 2023. However, demand from the downstream automotive industry was healthy as automotive sales increased by almost 21% on a year-on-year basis, as reported by the key automotive manufacturers across the US. Moreover, input costs across the United States largely increased, with inflation rates currently standing at 4.5%, according to the FRED. Increasing input costs amidst healthy demand from the downstream automotive industry largely compelled the prices of Thermoplastic Elastomers to increase.
APAC
The Asian market for Thermoplastic Elastomers has witnessed a bearish trend, with prices of the product declining by almost 14% in the third quarter of 2023, despite prices of Styrene increasing by almost 12%, which increased production costs. However, demand from the downstream construction industries remained largely moderate, with construction activities witnessing stable since the second quarter of 2023 and remaining stable for the first two months of the third quarter of 2023. Demand from the downstream automotive industry was also not healthy, with major brands struggling in sales amidst the rising electric automotive market, where SBR rubber finds its prime application in fluid circulation in the automotive market. Additionally, PMI across Asia had also increased, with indexes remaining across 50, which indicated expanding industrial activity. However, this proved to be detrimental to the market of Thermoplastic Elastomers, which experienced an oversupplied situation amidst low demand as production rates increased despite consumption remaining low. Internationally, the demand for SBR rubber had deteriorated as limited orders of imports were placed by the cardinal North American market.
Europe
The European market for Thermoplastic Elastomers experienced a bullish trend as prices of the product increased by more than 9%. The prime reasons for the appreciation of the prices of the product are huge inclinations in the prices of feedstocks Styrene and Ethylene, which inclined by almost 21% and 22% in Germany. Demand from the downstream automotive industry was also healthy as automobile sales tripled across the UK and appreciated by almost an average of 10% in France, the Netherlands, and Belgium. Even though the performance of the construction industry was disappointing across Germany, the construction industry had started to recover across the rest of the Eurozone. The housing Price index in Belgium declined to 135.51 in the second quarter of 2023, with annual inflation for house prices also declining to 1.8% in the second quarter of 2023, with depreciations being likely to be observed in both indicators. In the third quarter of 2023, according to Statistics Belgium. Moreover, overall inflation rates declined to 0.7%, with purchasing sentiments returning to pre-recessionary levels.
For the Quarter Ending June 2023
North America
The market for Thermoplastic Elastomer (TPE) in North America witnessed a depreciation of prices by almost 2%, with overall market situation being largely bearish throughout the second Quarter of 2023, despite slight improvement of demand from the automotive industry. Supply remained moderate in the beginning of the second quarter of 2023, but increased in the later in the months of May and June 2023 due to declining feedstock prices of styrene and ethylene and also due to lowering of gas prices to mitigate inflation, however demand from the automotive industry although showed signs of improvement in the month April but declined due to the Federal Reserve increasing interest rates in addition to no improvement of the demand from the construction sector. Furthermore, as the interest rates increased to 5%, export orders from overseas declined, which further contributed to the decline in the prices of Thermoplastic Elastomer. At the end of the second quarter of 2023, manufactures and traders faced an oversupplied market in contrast to an underwhelming demand, both in the domestic and international markets, which compelled the merchants in utilizing existing inventories. At the termination of the second quarter of 2023, the final prices of TPE were recorded to be USD 5520/MT FOB Chicago.
APAC
In the beginning of second quarter of 2023, the prices for Thermoplastic Elastomer (TPE) in the Asian market exhibited a marginal increment of around 2% with situation being bullish in the beginning but stabilizing at the end of June 2023. This increment in the prices of Thermoplastic Elastomer (TPE) was largely attributed to the revival of demand from the downstream automotive industry in Southeast Asia, despite slow economic growth in the region. Production was moderate due to reduction in the prices of feedstock styrene, but supply was limited due to reduced operations at the production units due to Labour Day holidays. Even though demand from the automotive industries improved in the beginning but later flattened towards the end of the second quarter. However, purchasing activities were present but restricted to only as per requirement as the instability in the prices of crude oil contributed to diminishing sentiments of restocking material amidst slow economic recovery, which overall led to the stabilization in the prices of Thermoplastic Elastomer (TPE). At the termination of the second quarter of 2023, the final prices of TPE were recorded to be USD 2645/MT FOB Shanghai.
Europe
The prices for Thermoplastic Elastomer (TPE) recorded an increment of more than 3% in the European market, with the overall situation maintaining a bullish trend. This was mainly due to a healthy revival of the automotive industry as sales in the automotive sector recorded a healthy increment, in addition to lowering of energy prices. However, this demand stabilized due to looming global economic uncertainties in the middle of the second quarter of 2023. The appreciation of prices was prevented by the decrement in the feedstock prices of styrene which in turn decreased the costs of production. Export orders from overseas remained largely low due to the worries of the US Banking system collapsing, which in turn led to reduced purchasing activities in the overseas market. Supply in the European region was moderate due to decreased feedstock prices and stabilized energy prices and manufacturers had enough inventories to cater the needs of the European market and the demand from slowly recovering automotive industry. However, demand from the international market looked bleak. The final price of Thermoplastic Elastomer (TPE) was estimated at USD 3950/MT FOB Antwerp.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the cost of TPE was observed to be stable, with slight fluctuations in the USA market. Despite high feedstock cost pressure, the consumption of TPE in the USA market was limited, and the product cost was constrained. In January, the TPE price fell marginally and continued to stable trend due to the high-interest rates impacting the construction and automotive industry firms in the USA market. Further, the new orders from the end-use industries declined for the fourth successive month in January and continued throughout the quarter. The cost of the TPE hovered around USD 5698/MT on a FOB Chicago during the end of the quarter.
APAC
The price of TPE witnessed an increased trend in Asia-Pacific throughout the first quarter of 2023. In January, the consumption of TPE from the downstream industries was reduced, and the product got stocked up in the Chinese market. After declined trend, the price got higher and received more orders from both domestic and overseas markets, and the merchants restocked the material. The Chinese manufacturing PMI saw above 50 points throughout quarter 1 of 2023. On the other hand, the Indian market followed the same price pattern throughout the quarter because India was importing from overseas markets for their needs. The cost of TPE settled at USD 2676/MT on a FOB Shanghai during the last month of the first quarter.
Europe
During Quarter 1 of 2023, the cost of Thermoplastic Vulcanizate witnessed an increasing trend due to the high-cost pressure from raw material EPDM Rubber and several other factors attributed to the positive price pattern. Inflation and high-interest rates impacted petrochemical commodities, including elastomer markets. The demand for the automotive industry was improved slightly, and the consumption of TPV from this industry was expanded in the European market. Several traders reported a “definite” demand increase from the downstream automotive and construction industries. While imported prices have also remained relatively high than the domestic prices as prices continue to increase in the Asian market.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the price of Thermoplastic Elastomer (TPE) witnessed a decline in North America. Orders from importing nations like Mexico and Canada decreased as a result of the weak demand from the downstream industries. The lack of cost pressure from the feedstock styrene has supported the price of TPE. This is because of a decline in crude oil and weak trading dynamics. In the second half of the fourth quarter, the supply chain strengthened, easing overall supply dynamics in the US market. The cost of TPE hovered around USD 5724/MT on a FOB Chicago basis during December 2022.
APAC
The cost of Thermoplastic Elastomer inclined trend in the Chinese market throughout the Quarter 4 of 2022. Despite the low-cost pressure from Styrene, the price of TPE increased due to the high orders from importing nations like India. The manufacturers have raised the cost due to more inquiries in the overseas market. The Chinese domestic market saw weaker in Q4 due to the slowdown economy and imposed zero COVID restrictions. The market saw a wait-and-see attitude due to the supply of high-priced goods, and overall demand was just the basis of need. The cost of TPE hovered around USD 2560/MT on a FOB Qingdao basis during December 2022.
Europe
The cost of Thermoplastic Vulcanizate (TPV) saw descending trend in Europe all through Q4 2022. The price drop was attributed to low demand from downstream automotive industries. In the fourth quarter, the TPE market was directly impacted by a reduction in automotive production output due to weak demand. In addition, the raw material EPDM rubber also weakened, leading to the negative price trend of TPV in the European market. In December, as the holidays got closer, buyers cut back on their orders, and the TPE market in the Eurozone showed a negative price trend. The cost of TPV hovered around USD 4800/MT on a FOB Hamburg during December 2022.
For the Quarter Ending September 2022
North America
During Quarter 3 of 2022, the Thermoplastic Elastomers price decreased in the North American region. The demand from downstream adhesives and footwear fell, which caused the inventories to surge, and a higher number of products stockpiled with the traders and the suppliers. The upstream feedstock Polystyrene prices were observed to be falling in the regional market with decreasing product consumption, as noted by the traders and the suppliers. The low demand from the downstream automotive and electrical & electronics industries and the manufacturing PMI registered 50.9 in September, which was lower than the previous month. Due to the continued decline in global crude oil prices as recession fears and supply shortage worries battled, the cost of Thermoplastic Elastomer decreased by 1.3% in Q3 2022.
APAC
During the third Quarter of 2022, Thermoplastic Elastomers prices witnessed a decreased trend in the Asia-Pacific region. Feedstock Styrene prices kept declining in the Chinese market, proportionally impacting the market prices of TPE. Additionally, the market in India continued to experience a decline in the need for electrical appliances and automotive parts, which directly impacts polymer industries, including Thermoplastic Elastomer. In September, the price of TPE increased trend in India, and high demand from the downstream electrical and automotive sectors owing to the festive season in upcoming months. The traders have less stockpiled, and limited product availability raised the price of the Thermoplastic Elastomer in the Indian market. As a ripple effect, the cost of Thermoplastic Elastomer settled at USD 2499/MT on a FOB Ningbo basis during September.
Europe
Thermoplastic Elastomer prices witnessed mixed sentiments in the third Quarter of 2022 due to fluctuating demand dynamics in Europe. Further, new orders fell due to inflationary pressures, low investor confidence in the outlook, and supply-chain disruptions. 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. Furthermore, domestic production costs remain high in the face of rising energy and operating costs, resulting in low output rates. However, fears of a European recession have dampened demand. Hence, the prices of Thermoplastic Elastomer were assessed at USD 3725/MT on a FOB Antwerp basis during the third Quarter.
For the Quarter Ending June 2022
North America
The North American market saw a surge in the prices of Thermoplastic Elastomer during the second quarter of 2022 with a quarterly escalation of 1%, as recorded by Chem Analyst pricing team data. The market proliferated in the last quarter due to increasing demand from actual application automotive areas and improvements in processing technologies. Varying global freight charges and disruptions in supply chains due to logistical constraints caused a shortage of shipments and indirectly caused a lack of products in the regional market. Rising prices of upstream feedstock Polystyrene due to the affecting on the petrochemicals market of the ongoing war between Russia and Ukraine was one of the major causes for the costs to escalate.
Asia
Thermoplastic Elastomer prices fluctuated in the Asian market during the second quarter of 2022, with costs surging in the Chinese market and falling in the Indian market with a quarterly inclination of 0.1% and declination of 1.4%, respectively, as recorded by ChemAnalyst pricing team data. Varying prices of upstream feedstock Polystyrene supported these fluctuations. The ongoing war between Russia and Ukraine caused these fluctuations in the global petrochemicals market. Falling production and operating costs for the product within the region were the primary reasons for the prices to surge. The above reason caused a surging of inventories and maximum products to be stockpiled with the traders and the suppliers in the market.
Europe
Thermoplastic Elastomer prices surged in the European market during Q2 of 2022, with a quarterly escalation of 2.4% in Belgium as per Chem Analyst pricing team data. The global surge in freight charges due to the war between Russia and Ukraine put cost pressure on the product's prices. Escalating demand for the product from the downstream markets like adhesives, footwear, medical devices, and automotive sectors supported the market upward. The use of thermoplastics in the automotive industry is growing, which is expected to be an enormous opportunity for thermoplastic elastomers. Most thermoplastic elastomer producers have extensive international operations. The industry has high barriers to exit due to the high cost of machinery and technology.
For the Quarter Ending March 2022
North America
The Chinese import values of Thermoplastic Elastomers remained uncertain due to which prices fluctuated in the North American market during the first quarter of 2022. The increasing upstream Polypropylene prices in the Asian region influenced the production costs of TPE. The demand of TPE remained sluggish in the construction and electronics industries due to fewer activities in the construction during wintertime, and prices decreased by nearly USD 200/MT due to less demand in Q1,2022.
Asia Pacific
TPE prices remained highly volatile in the Asian market during the first quarter of 2022. The prices decreased during the first two months of Q1 and rose during March in the Asian region due to disturbed supply chain and shortage of crude oil to upstream and TPE manufacturing industries. TPE prices fluctuated between USD 1200-1400/MT in Q1-2022 in the Indian market. As China is a major exporting country of TPE to the European and American region, the, values of TPE in the importing countries also remained high. The demand remained mixed due to uncertain downstream demand throughout the period. However, the demand from the automotive sector increased in March towards the end of Q1.
Europe
The sluggish demand from the downstream construction and electronics sector during winter kept values of TPE on the lower side. The values decreased in January, however rose in Feb and the first half of March, and then again fell by the end of the quarter. Shortages of Crude oil supplies from Russia amidst the war increased TPE prices at the beginning of March as the supply from exporting countries was less towards the end of the quarter. TPE prices in Europe witnessed a fluctuation by nearly 4% throughout the quarter.
For the Quarter Ending December 2021
North America
Asian exports of Thermoplastic Elastomers remained weak on US shores owing to strong freight charges and long transit time between Asian and US ports. North American region is the second largest producer of Thermoplastic elastomers after Asia pacific. Domestic production increased in Q4 in comparison to earlier quarters on the back of no unforeseen weather conditions and increased availability of feedstocks. On demand side, automotive industry output remained sluggish which deterred TPE market sentiment, however stable consumption from construction industry and limited inventories kept the prices firm during the last quarter.
APAC
Marginal hike in price of Thermoplastic Elastomers observed during the last quarter on the back of stable offtakes from downstream automotive sector amid festive optimism. On the other side, rising raw material resulted in increased cost pressure while freight congestion on key ports in Asia Pacific curtailed timely imports which also impacted the overall price trend for TPE in the market. Thus, TPE price rose effectively and were assessed at INR 191300 per MT in December on CFR basis. In China, stable consumption of Thermoplastic Elastomers resulted in firm prices of the material. Demand from automotive industry remained sluggish however, increased consumption from construction and other industries maintained healthy offtakes. Although, TPE market trend declined towards later stages of Q4 however prices were assessed at premium values.
Europe
Thermoplastic Elastomer market remained robust throughout the quarter owing to stable offtakes and constrained supply fundamentals. European automotive industry remained on a weakened trend as global shortage of semiconductor chips continue to plague automotive industry. However, increased consumption levels from construction and other industries kept the inflationary pressure on the available material. Consequently, market participants enjoyed strong margins and kept the prices firm in the European markets during the last quarter.
For the Quarter Ending September 2021
North America
American TPE market remained dull with prices witnessing a plunge in the North American region for a larger part of Q3 2021. There was a surge in the demand for TPE from the downstream automotive sector despite the global shortage of semiconductor chips in the third quarter. Offtakes from the electronics sector remained stable throughout the quarter. Increasing raw material prices was the key concern of the regional producers in the 3rd quarter as well. The shutdown of manufacturing units due to Hurricane Ida, high freight costs, and increased shipping charges were some other factors that led to surged prices of TPE across the region.
Asia
The price trend of TPE demonstrated an upward trajectory in the Asia Pacific region during the third quarter of 2021 backed by the prevalent gains in the prices of international markets. The surge in the prices of feed additives like SBR and EPDM rubber assisted in providing it a much-needed rise at times of its volatile domestic demand. In India, TPE gained sufficient value in August supported by recovering construction sector, post decline in pandemic cases during Q3 2021. Soaring container and freight costs shot up the prices of several commodities including TPE in the country. Prices of TPE in India witnessed an uptrend and escalating from USD 2864/mt to USD 2957/mt from July to September in 2021.
Europe
Substantial hike in the prices of TPE was observed in the European domestic market during the third quarter of 2021. The demand for TPE from the downstream automotive sector remained firm throughout the quarter despite disrupted automotive production in Germany caused by the global chip shortage that started late last year. In response to unforeseen and unprecedented energy costs escalations in Europe, the prices are further expected to increase in the near term.
For the Quarter Ending June 2021
North America
Prices of Thermoplastic Elastomers (TPE) fluctuated in a narrow range in Q2 as the demand from downstream automotive sector reduced in the second half of the quarter. Despite of the strong economic recovery in USA, the demand for TPE remained low due to reduced offtakes from the automotive sector after global shortage of semiconductor chips weighed over the regional production. While the performance of the electronics sector remained stable throughout the quarter, it did not put any significant impact on the TPE demand in the meantime. Surge in raw material prices remained the key concern of the regional producers.
Asia
Thermoplastic Elastomers (TPE) demand in Asia fluctuated month over month and varied with the country dynamics during this timeframe. In China, the demand improved initially in the first half of the quarter, which later reduced due to the sudden surge in pandemic cases in the country. This sudden surge in pandemic cases also reduced the global availability of semiconductor chips, which eventually led to slackening automotive production and lesser TPE requirement. Meanwhile in India, the demand remained muted during the month of May, as the country struggled to control the second wave of pandemic through state-wise lockdown measures. Prices of TPE rebounded in June with the resumption in economic activities in the country. Showing an effective bounce back, the price of TPE in India hovered around USD 2728/MT during June 2021.
Europe
The European TPE market fluctuated with the demand movement seen across the regional automotive sector. While the demand remained low initially during the month of April, it later started improving with the pick in the demand patterns. A leading player reported reduced Thermoplastic elastomers sales in Q2 primarily due to maintenance works at one of its sites in Voronezh. The effect of global semiconductor chips shortage also affected the European market. The quarter ended with ExxonMobil Corp. announcing divestment of its Santoprene TPV elastomer business to Celanese, a ley strategic move to reduce its debt.
For the Quarter Ending March 2021
North America
North American Thermoplastic Elastomer (TPE) market faced shortage of feedstock chemicals under the extreme cold conditions. Several feedstocks as well as TPE producers including Kuraray’s, declared force majeure in February, as the weather conditions were not favourable for plant operations. On the other hand, Radici declared an investment of USD 40 million in the global expansion of its high-performance polymers including TPE. In February, a leading TPE manufacturer announced price increases of nearly USD 150 per MT for its Thermoplastic Elastomers sold in North America in response to strengthening demand for its products and increased freight energy and raw material prices.
Asia
The Asian market had mixed sentiments for Thermoplastic Elastomer (TPE) as the demand remained moderate to low, amid the supply crunch. During Chinese lunar holidays, as the supply remained short across the region, prices of TPE in the Indian market rose affectively till February end but later came down as the supply started improving gradually. Similar price trend was observed by the Chinese market where price came down from USD 2551 per MT in January to USD 2466 per MT in March end. In addition, Tokyo based company “Zeon” increased prices of their TPE product named “Quintac” by USD 500/MT, the prices came into effect from 1st March 2021 globally.
Europe
The European demand for Thermoplastic Elastomer (TPE) remained moderate to low, as the second wave of Covid 19 caused sudden surge in cases and reduced the demand from end users. Hence affected the prices, lower demand lowered down the prices across the region. In addition, Ninhnekamskneftekhim (NKNKH), one of the largest Russian petrochemical producers started production of TPE, is likely to enhance the supply of TPE across the region.
For the Quarter Ending December 2020
North America
The fourth quarter showed mixed results for the American TPE industry with the industry mainly facing higher pricing from the pass through of raw materials. Key drivers of the upward price trajectory included plant outages at some upstream facilities prompting tighter feedstock and resin availability. An American polymer giant reported the acquisition of Germany-based TPE business to expand its regional presence. Demand showed marked uptrend in the US due to pick-up in the automotive manufacturing and growing prospects for light vehicle production in 2021.
Asia
The fourth quarter performance remained resilient for the Asian engineered polymers producers especially those producing TPE. Sales numbers reported double digit increases over the previous quarter for a leading Asian producer based in Japan. In December, Trinseo inaugurated a pilot plant in Hsinchu, Taiwan for the production of thermoplastic polyurethane (TPU), thermoplastic elastomers (TPE) and bio-based plastics dedicated to serving its Asian clients. China showed strong volume development in the automotive sector during Q4. With many Asian economies rebounding from the pandemic induced slowdown and rising indications form the automotive sector, players seemed cautiously accelerating output. Prices across the Indian markets seemed tepid under rising consumer pressure ahead of the festive season to settle around USD 2570 per tonne in December.
Europe
Thermoplastic Elastomers market remained shrouded with dullness amid economic slowdown and fragile market conditions. Closures of automotive factories and persistently weaker dynamics in the downstream sectors hard hit the region raising expectations that activity in Europe may continue to slow even in Q1 2021 if the effect of the pandemic does not reduce soon. During the fourth quarter, Sibur planned to ramp up production at its new 50 KTPA TPE manufacturing unit established in April in Voronezh. Russia reported a some QoQ increment in the performance of its elastomer sector pushed by positive dynamics in prices due to better sales. Manufacturing activity showed some growth in demand buoyed by the increased offtakes from the medical and consumer electronics sector.
