In Q1 2024, Polyolefin Elastomer (POE) prices in the U.S. increased by about 3-4%, driven by growing demand from the construction sector and industrial activities. This rise was further propelled by higher feedstock costs, primarily due to surging prices of raw materials such as Ethylene along with elevated Crude Oil prices affecting monomer production. Despite a decline in vehicle sales in January, strong international demand contributed to the price hike. However, factors like disrupted trade routes and reduced export profit margins limited the overall price growth for traders and manufacturers.
In Q2 2024, POE prices in North America dropped significantly due to supplier destocking, abundant supply, and reduced capacity utilization stemming from logistical challenges and cost-cutting measures. Although the automotive sector experienced some growth, offering slight support, overall market sentiment remained negative. The ongoing supply-demand imbalance and strategic inventory management continued to exert downward pressure on prices. Europe followed a similar pattern, with price fluctuations largely influenced by changes in raw material costs.
By early Q3 2024, the global POE market showed signs of recovery, with prices rising to around 2980 USD/MT (FOB Houston). This upward trend was driven by increasing demand from key end-use sectors such as automotive, construction, and consumer goods. The growing use of POE in lightweight automotive parts and sustainable packaging, combined with a stronger raw material market—especially for Ethylene—supported supply growth. Strong demand across industries and improved raw material availability contributed to a positive market outlook.
Looking ahead to Q4 2024, POE prices are projected to decline moderately due to decreased demand from the automotive and construction sectors and typical year-end industrial slowdowns.