Automotive Industries Sustain Market For Thermoplastic Elastomers In India

Increased use of Thermoplastic Elastomer for commercial uses such as adhesives, footwear, medical devices, and automobile parts surged the prices of Thermoplastic Elastomer in India. The rise in the production of electric vehicles in Asian countries and the surge in demand for wireless electric vehicle charging solutions have boosted the growth of the global wireless electric vehicle charging market. TPE is more heat resistant than polypropylene for its rubber composition, necessitating more robust thermoforming temperatures. To prevent surface roughness and deformation after forming, uniform cooling is carried out; therefore because of these improved characteristics, TPE provides more flexibility than polypropylene or co-polymer but more stiffness than LDPE and is employed in a wide range of downstream applications.

Thermoplastic Elastomer (TPE) prices surged in India, with prices hovering around INR 210286/ton-INR 224770/ton Thermoplastic Elastomer (TPE) Ex-Delhi NCR and a rhythmic escalation of 1% in May. The prices of upstream feedstock Polypropylene and Propylene remained stable during the last week of May, ranging from INR 119320.00/ton Polypropylene Raffia 3 MFI CFR- JNPT and INR 100650.00/ton Propylene Chemical Grade(spot) Ex-Mumbai respectively.  This increase in prices can be attributed to the rise in the number of developmental projects, rapid urbanization, and the development in the region's per-capita income of the middle class.

Thermoplastic Elastomer prices is rising marginally this month, thanks to massive offtakes from the downstream automotive industry and market optimism. On the other hand, rising raw material costs attributable to inflationary pressures and major freight congestion hampered the overall valuation trend for Thermoplastic Elastomer. Another significant improvement in Thermoplastic Elastomer regulatory and administrative from domestic downstream end consumers has been witnessed this month in India. Meanwhile, demand from other divisions remained relatively stable, resulting in an overall price hike.

As per Chem Analyst, prices of Thermoplastic Elastomer are anticipated to remain firm in the month following, as the country's current demand-supply scenario from the automotive enterprises is doubtful to alter anytime soon. Furthermore, freight congestion and inflation could have an impact on revenue, although no substantial loss is envisaged in the Indian polymer market this year.