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.
