For the Quarter Ending March 2025
North America
The North American Thermoplastic Elastomer (TPE) market saw a 4.8% price increase by the end of Q1 2025, driven by improved demand and higher production. However, the ample supply mitigated most price gains. In January, TPE supply remained abundant due to strong November production, but logistical challenges, including warehouse congestion in Houston and a winter storm disrupting deliveries, exerted downward price pressure.
Demand stayed positive, supported by strong automotive sector performance and rising exports. By mid-January, feedstock costs rose as Ethylene and Styrene prices surged amid a Gulf Coast freeze, tightening TPE production. February saw global price hikes led by Kuraray Plastics, which raised TPE prices by $330/MT, citing increased production and logistics costs.
Domestic inventories were tight, and Styrene prices rose 7%, further rising production costs. However, demand dipped slightly, with January car sales down 7.5% due to post-holiday sluggishness and extreme weather. In March, production declined, with a resin output down 6.2%. Improved logistics post-storm lowered transport costs and stabilized prices. Exports to Mexico and Canada remained moderate, while domestic demand stayed weak, particularly from the automotive sector, keeping order volumes limited and prices stable.
Europe
The European TPE market saw a modest price increase of around 2.5% by the end of Q1 2025, mainly driven by low production rates and rising costs. However, the presence of ample inventories limited further price growth. In January, production was subdued due to low Styrene plant operating rates (56.13% in December) and holiday-related slowdowns, while logistics issues, including congestion at major ports, restricted trade flows. Feedstock costs rose about 6%, intensifying cost pressure, but demand remained weak, particularly from the struggling automotive sector, which saw a 6% decline in new car registrations in 2024. In February, production stayed low, and inventories remained high, with minimal restocking from converters. Demand continued to be sluggish amidst unresolved negotiations and weak automotive output. By March, Styrene prices surged another 9%, sustaining high production costs. Although some logistical improvements were seen at the Port of Antwerp, limited Styrene imports and low domestic run rates constrained TPE supply. Still, weak demand—particularly from the auto sector, where the Belgian market contracted 10.7%—capped any significant price rise, maintaining a fragile equilibrium between tight supply and subdued demand.
APAC
The APAC Thermoplastic Elastomer (TPE) market faced a broadly bearish trend in Q1 2025, with prices declining by approximately 3.3% before rebounding slightly by 1.1%. The initial downturn was driven by abundant Chinese supply and weak demand, while the later recovery was supported by moderate restocking and selective price hikes from key producers, though with marginal market impact. In January, high operating rates in China (TPE at 86%, Styrene at 74.36%) led to oversupply, pushing prices down. Chinese exporters offloaded bulk inventories into Southeast Asia, including across the APAC region, further pressured by a 6% decline in intra-Asia freight rates. Demand across APAC remained steady but cautious, dampened by Ramadan and conservative buying behavior. In February, despite an 8% rise in Styrene prices, TPE production in China slowed (operating at 40–50%), and inventories surged, creating ongoing price pressure. Weak APAC demand persisted due to festive slowdowns and an anticipated cooling in the automotive sector. By March, Chinese production rebounded, raising TPE supply. Lower Styrene prices and freight rates further pressured prices. APAC demand remained sluggish, with buyers relying on existing inventories and minimal fresh purchases.
For the Quarter Ending December 2024
North America
The North American Thermoplastic Elastomer (TPE) market remained relatively stable throughout Q4 2024, despite some fluctuations in demand and supply dynamics. Prices showed limited movement, with suppliers largely working through existing inventories, which helped prevent any significant price increases. In November 2024, the US automotive market displayed signs of gradual recovery, supporting stable TPE prices. The rise in new car sales, particularly in the hybrid segment, was a key factor in the positive outlook, though the impact on TPE prices was largely absorbed by abundant inventory levels.
While feedstock Styrene prices remained stable, logistical challenges, including backlogs in Houston warehouses and delays caused by the ILA strike, contributed to inventory accumulation, exerting downward pressure on prices. Despite these supply chain hurdles, production levels remained healthy, with the American Chemistry Council reporting a 5.8% increase in TPE production in November 2024. On the export front, conditions improved, although weaker demand from key markets like Canada and Mexico dampened growth.
Overall, despite some localized disruptions and a slight decline in export demand, the TPE market in North America maintained a balanced and steady pricing environment through Q4 2024.
APAC
In Q4 2024, the Thermoplastic Elastomer (TPE) market in the Asia-Pacific (APAC) region experienced a marginal downward price trend, with prices declining by approximately 0.5%. Ample supply conditions dominated the quarter as production rates remained high, supported by elevated styrene inventories in China, which reached 31,900 tons by December. Operating loads for TPE production averaged 86%, contributing to oversupply and consistent downward pressure on prices. Domestic demand in China was bolstered by the strong performance of the automotive sector, where passenger vehicle sales rose by 12% year-on-year in December, driven by government incentives and increasing demand for new-energy vehicles. However, export demand from key Southeast Asian markets such as Vietnam and Malaysia remained weak. Vietnam’s automotive sector faced a significant downturn, with vehicle sales dropping 29% month-on-month in December, while seasonal disruptions and higher freight costs further hampered export activity. Despite stable demand from China’s automotive sector, the combination of oversupplied feedstock, subdued export demand, and regional logistical challenges prevented any price recovery. Overall, the APAC TPE market concluded the quarter with a bearish sentiment, reflecting a mix of abundant supply and uneven demand dynamics.
Europe
In Q4 2024, the European Thermoplastic Elastomer (TPE) market exhibited a steady downward price trend. Throughout the quarter, European TPE prices faced consistent pressure due to weak demand, particularly from the automotive sector. While the region experienced ample supply due to low operating rates and reduced production in several manufacturing facilities, the demand remained underwhelming. The automotive industry, a key driver of TPE consumption, saw only marginal improvements, which did little to alleviate the overall market downturn. Despite a slight increase in Styrene prices, production costs remained relatively stable, and feedstock prices rose only moderately. Logistical challenges, including port congestion and maintenance work, also disrupted the flow of goods, adding to the downward pricing pressure. Throughout the quarter, European suppliers were mainly focused on reducing their inventory levels, which were already substantial due to previous months' low demand. These conditions led to minimal procurement activities, and most suppliers kept prices steady with few adjustments. As a result, TPE prices for Q4 2024 remained under pressure, with the outlook for early 2025 not expected to show significant recovery unless demand from the automotive sector improves markedly.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Thermoplastic Elastomer (TPE) pricing in North America has been characterized by a significant upward trend in prices. Several key factors have influenced market prices during this period, notably the continuous increase in production costs driven by rising prices of feedstock materials, particularly Ethylene. Supply chain disruptions due to plant maintenance and force majeures have further tightened supplies, exerting upward pressure on prices. Additionally, subdued demand from the automotive industry and cautious procurement activities have contributed to the price increments.
In the USA, the market has experienced the most substantial price changes. From the previous quarter in 2024, prices have risen by 3%, Sindicating a steady upward trajectory. The second half of the quarter saw a 1.5% price increase compared to the first half, demonstrating a sustained positive momentum in pricing.
As the quarter draws to a close, the latest price stands at USD 6041/MT of Thermoplastic Elastomer TPE- FOB Chicago in the USA, reflecting a consistently increasing pricing environment driven by supply constraints and rising production costs.
APAC
The third quarter of 2024 for the Asian Thermoplastic Elastomer (TPE) market was marked by a gradual decline in prices, driven by several key factors. In China, prices for Thermoplastic Elastomers fell as moderate production levels, coupled with lacklustre demand from the automotive industry, balanced market conditions. Despite the automotive sector achieving high production rates, sales continued to slump, keeping demand unfavourable. Insights revealed that China's manufacturing activity hit a six-month low in August, as factory gate prices plummeted, and manufacturers struggled to secure orders. This situation pressured policymakers to consider increasing stimulus for households. Sentiment among manufacturers remained gloomy, exacerbated by a prolonged property crisis that has dampened domestic demand, along with looming Western curbs on exports, including electric vehicles. New orders and export sub-indices remained firmly in negative territory, resulting in a hiring freeze across the sector. Overall, the quarter recorded a 6% decrease compared to the previous quarter, with a consistent negative pricing environment reflected by a -1.6% change between the first and second halves. By the end of the period, the price of thermoplastic elastomer FOB Shanghai in China reached USD 2118/MT, underscoring the challenging market conditions.
Europe
The third quarter of 2024 for the European Thermoplastic Elastomer (TPE) market has been characterized by a gradual increase in prices, driven by several key factors. Significant influences on pricing included rising production costs due to inflationary pressures in feedstock prices, particularly Styrene, which surged by approximately 8%. This surge in Styrene prices, attributed to higher upstream Benzene costs, played a crucial role in driving up overall TPE prices. In Germany, the market witnessed the most significant price changes, further emphasizing the upward trajectory in pricing for the region. The quarter recorded a 1% price increase from the previous quarter, maintaining the overall positive sentiment. The price comparison between the first and second half of the quarter showed a consistent 1% increase approximately, reflecting stability in the pricing environment. The quarter-ending price for Thermoplastic Elastomer (TPC-ET Copolyester) IM Grade FD Hamburg in Germany stood at USD 6916/MT, indicating a steady rise in prices throughout the period. Overall, the pricing environment for TPE in Europe during Q3 2024 has been characterized by a steady and positive upward trend.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a sharp escalation in Thermoplastic Elastomer (TPE) prices throughout North America, driven by a complex interplay of market forces. Rising production costs, particularly fuelled by increases in Styrene and Ethylene feedstock prices amidst plant shutdowns and logistical bottlenecks, were primary catalysts for this surge. Market optimism initially soared on the back of expanding manufacturing activities and robust automotive demand typical for the season. However, as the quarter progressed, waning consumer confidence, economic uncertainties, and election-related anxieties tempered automotive sector growth.
The Federal Reserve's decision to maintain interest rates between 5.25% to 5.5% further complicated economic forecasts, influencing broader market dynamics. In the U.S., TPE prices saw a substantial 8% increase from the previous quarter and a notable 19% surge compared to Q2 2023, reflecting a buoyant yet constrained market grappling with supply and demand pressures. Seasonal factors, like the summer driving season, bolstered automotive demand, aligning with consumer behaviour trends and contributing to price escalations.
Within the quarter, a modest 2% price rise between the first and second halves highlighted steady upward pricing momentum. Ultimately, closing at USD 3917/MT for Thermoplastic Elastomer TPE-SEBS CFR Houston, the quarter concluded on a robust note, underscoring a resilient pricing environment bolstered by strong demand and escalating production costs.
APAC
Throughout the second quarter of 2024, the Thermoplastic Elastomer (TPE) market in the APAC region underwent a significant decline in prices, marking a period of notable economic turbulence. This downturn was not merely a result of isolated incidents but rather a culmination of several interconnected factors that exerted immense pressure on market dynamics. Firstly, disruptions in freight logistics contributed significantly to the challenges faced by TPE suppliers and manufacturers. Delays in inventory movement due to these disruptions exacerbated existing supply chain inefficiencies, particularly impacting the timely availability of TPE materials across the region. Concurrently, a force majeure event at a major styrene plant in China added another layer of complexity by constraining the supply of essential raw materials, thereby driving up upstream costs.
The interplay between supply disruptions and demand fluctuations, particularly from key sectors like automotive manufacturing, played a pivotal role in shaping the pricing landscape. The automotive sector, a significant consumer of TPE products, exhibited a mixed recovery pattern during the quarter. This variability in demand exerted further downward pressure on prices as manufacturers adjusted production levels in response to market conditions. Despite these challenges, the pricing environment was moderated to some extent by fluctuating production costs of feedstocks such as ethylene and Styrene. These raw materials, essential for TPE production, experienced variable pricing throughout the quarter, providing a counterbalance against a sharper decline in finished TPE product prices. In China, the largest market for TPE in the region, the pricing trends were most pronounced. A consistent downward trajectory characterized the quarter, driven by subdued domestic demand and intensified competition from alternative materials. These factors underscored the persistent nature of the price decreases observed in the market. By the end of the quarter, TPE prices had fallen significantly, reflecting an 18% decrease year-on-year and a 3% decline compared to the previous quarter. Within the quarter itself, prices continued to slide by 3% between the first and second halves, culminating in a closing price of USD 2193 per metric ton FOB-Shanghai. This final figure underscored the prevailing negative pricing trend that defined the entirety of Q2 2024. In conclusion, the second quarter of 2024 was marked by a challenging economic environment for the TPE market in APAC, shaped by external supply constraints, logistical challenges, and fluctuating demand dynamics. These factors collectively contributed to a significant downturn in prices, highlighting the vulnerability of the market to broader economic and operational disruptions.
Europe
The second quarter of 2024 has brought a strong upward trend in Thermoplastic Elastomer (TPE) prices across Europe, driven by several pivotal factors. A notable driver has been the escalating costs of essential raw materials like Styrene and Ethylene, propelled by disruptions in supply chains and capacity reductions. The automotive sector, despite a preference shift back to internal combustion engine vehicles, has provided steadfast support early in the quarter, buoyed by rising registrations and sales that sustained demand for TPE in manufacturing. This was further accompanied by unfavourable weather conditions and strikes by Union workers at key European ports which increased the lead time for deliveries and surfaced as higher transportation costs.
In Germany, the TPE market experienced significant price surges, primarily fuelled by a resurgent automotive industry driving demand for TPE in auto parts production. Seasonal demand patterns also contributed to price stability during spring. Prices in Germany rose by 7% year-on-year and 2% from the previous quarter in 2024, with a steady 2% increase observed within the quarter itself. Closing at USD 5299/MT for Thermoplastic Polyurethane Copolyester FD Hamburg, the quarter concluded on a consistently positive note. Germany's TPE market has thrived amidst unfavourable economic conditions, strong demand, and challenging conditions in the present supply chain system, contributing towards a robust and upward trajectory in pricing. Overall, the second quarter underscored resilient market dynamics and positive price movements, affirming a buoyant landscape for TPE across Europe.
