In Q1 2024, the Ethylene Acrylic Elastomer (AEM) market saw a decline of approximately 1%, driven by several key factors. The primary reason for the price drop was the weakened performance of the manufacturing sector in major global economies. With ample AEM inventory, suppliers reduced their quoted prices, contributing to the overall market slowdown.
By Q2 2024, the U.S. AEM market displayed a steady upward trend, supported by a recovering automotive sector and improved availability of key feedstocks such as ethylene and acrylic acid. However, supply chain disruptions, caused by tight inventories and efforts by suppliers to build stock, led to price increases. The ongoing drought at the Panama Canal further exacerbated raw material supply challenges, but robust domestic demand and resilience in key industries sustained market growth.
In Q3 2024, the AEM market continued its growth, with prices stabilizing around 17,300 USD/MT in FOB Houston, despite flat demand from some end-user industries. Stability was driven by rising demand for consumer goods and raw materials, coupled with production capacity limitations and higher freight costs due to supply chain disruptions. Additionally, the increasing emphasis on sustainable materials and evolving regulatory requirements supported the market’s continued upward trend.
As Q4 2024 approaches, AEM prices are expected to decline due to seasonal demand reductions, particularly in colder regions where harsh weather impacts industries like automotive and construction. This seasonal slowdown could result in oversupply, pushing prices down. A rebound in AEM prices is anticipated in the warmer months, when demand from these sectors typically recovers.