For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American market for Ethylene Acrylic Acid (EAA) copolymer exhibited notable mixed price fluctuations primarily influenced by the underlying dynamics of the ethylene feedstock market. During the latter part of August, ethylene prices in the U.S. demonstrated a positive uptrend. Additionally, heightened inquiries from Latin America and Mexico for inventory restocking further bolstered price levels. However, as September progressed, feedstock ethylene prices began to soften.
Furthermore, sluggish export demand, particularly from Latin America, Mexico, and Asian markets, compounded the downward pressure on the EAA copolymer prices. Amid these market challenges, looming labor strikes at Canadian railways and U.S. East and Gulf Coast ports posed potential disruptions to North American supply chains.
In conclusion, while EAA copolymer prices in North America were initially supported by rising ethylene costs and stable downstream demand, the market faced increasing headwinds in September, characterized by declining prices and potential disruptions from labor strikes. The outlook remained cautious in both the feedstock and downstream segments in the EAA market.
Asia
In the third quarter of 2024, the Ethylene Acrylic Acid (EAA) copolymer market in Asia continued to exhibit weak performance. The market was characterized by an oversupply situation as maintenance operations resumed, enhancing production capacity and leading to increased inventories. This situation contributed to downward pressure on transaction prices, with manufacturers experiencing a notable decline in prices due to the surplus. Throughout the quarter, ethylene prices remained fluctuating but relatively stable, which provided some relief on raw material costs for EAA producers. However, the overall sentiment in the EAA market shifted from bullish to bearish, as demand from downstream buyers was primarily driven by immediate needs rather than long-term commitments. Buyers showed general interest in negotiating lower prices, reflecting a cautious approach amidst the prevailing market uncertainty. Furthermore, geopolitical tensions and economic uncertainties in the region have continued to weigh heavily on market dynamics, leading to low transaction volumes and a lack of enthusiasm among buyers for forward purchases. In conclusion, the Q3 2024 landscape for Ethylene Acrylic Acid copolymer prices in Asia reflects a continuation of weak demand, oversupply, and cautious buying behavior. Market participants are left navigating a challenging environment with limited visibility into a potential recovery in the near term.
Europe
In the third quarter of 2024, the Ethylene Acrylic Acid (EAA) copolymer market in Europe experienced a mixed-price trend, influenced primarily by increased cost pressure from the feedstock Ethylene market. While feedstock Ethylene prices continued to rise due to tight supply and reduced import offers from Asia, by the middle of the quarter, EAA copolymer prices began to stabilize as the market absorbed the post-holiday demand. As September unfolded, feedstock Ethylene prices in the German market began to soften. The EAA market slowness resulted from the eased production costs and bearish market sentiment. The overall demand for EAA copolymer from downstream industries, particularly in the plastic and packaging sectors, remained sluggish despite the absence of seasonal holidays. Inquiries from end-users were notably low, further contributing to downward pressure on prices. By the end of September, market players noted an oversupply situation, with inventories adequately restocked. Additionally, cheap import offers from Asian markets and a decline in the Drewry World Container Index further supported the downward trend in prices. In conclusion, the EAA copolymer market in Europe during Q3 2024 was characterized by a shift from initial price increases due to tight supply to a subsequent easing of prices amidst weak demand and favorable feedstock conditions. The overall market outlook remains cautious as economic uncertainties and subdued consumption trends continue to weigh on pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Ethylene Acrylic Acid Copolymer (EAA) saw price increases driven by constrained supply and heightened input costs. Limited inventories and rising crude oil prices, which reached a two-month high, contributed significantly to this trend.
Additionally, severe weather conditions, including the hurricane season and floods, disrupted industrial demand and production rates, further tightening supply chains. These disruptions, along with container shortages and logistical challenges, propelled an upward trajectory in EAA prices.
In the USA, the most significant price fluctuations within the region were observed. Seasonal factors, such as the hurricane season, exacerbated supply constraints, increasing cost pressures during the quarter. From a supply chain perspective, supplies from the US Gulf to Asia sharply declined at the end of June 2024. Plant rate reductions and delays in the aftermath of Hurricane Beryl created significant gaps in shipping capacity, according to shipping brokers. In anticipation of the storm, some EAA-producing plants took precautionary measures and shut down, while others sustained damage or lost power, leading to further shutdowns and declarations of force majeure.
APAC
In Q2 2024, the Ethylene Acrylic Acid (EAA) Copolymer market in the APAC region witnessed an overall stable trend along with marginal upward price momentum. The cost of EAA Copolymer experienced an upward trajectory in China since April 2024. Further, the increase in the costs of feedstock Ethylene and Acrylic Acid during the month has overall led to an upward momentum in price trend. The regional market witnessed low product availability, coupled with increased inquiries from downstream adhesive and packaging sectors, prompting market participants to raise prices. Additionally, heightened demand from the construction industry further bolstered the price surge. However, logistical hurdles also played a significant role in impacting product prices within the country. Houthi militants in Yemen intensified their attacks on vessels in the Red Sea, disrupting a crucial shipping route essential for east-west trade. In response, some shipping companies rerouted vessels to sail around southern Africa, opting for a longer and consequently more expensive route. This disruption in shipping contributed to supply chain challenges and added pressure on product prices. Despite these challenges, there were signs of normalization in round-Africa routings and an improvement in global schedule reliability, exceeding 53%. This restoration of stability and efficiency in global shipping contributed to a favorable trading atmosphere, further supporting the upward trajectory of EAA Copolymer prices in China. Moreover, the EAA market witnessed a Plant disruption, including those at key facilities like Sinopec Qilu and Ningbo LG Yongxing, which further complicated the supply dynamics, although the abundant stock levels mitigated their impact. Conclusively, the quarter culminated with the EAA Copolymer prices settling at USD 4255/MT Ex-Qingdao in China.
Europe
In Q2 2024, the European market for Ethylene Acrylic Acid (EAA) Copolymer experienced a slight decline in prices. This decrease was influenced by several key factors, including subdued domestic demand within the construction sector and intensified competition among regional sellers. Additionally, the uncertain economic outlook exacerbated bearish market sentiments. Shipping disruptions and logistical challenges further compounded the market's instability, leading many producers to reduce output rates. In Germany, where the most significant price changes occurred, market dynamics closely mirrored broader regional trends. German EAA prices fell sharply, driven by high production costs and weak downstream demand, particularly from the construction industry. Overall, the pricing environment for EAA in Germany during Q2 2024 was marginally negative, influenced by structural market weaknesses and supply-related disruptions. Port operations were also affected by a workers’ strike impacting ports such as Hamburg, Bremen, Bremerhaven, Brake, and Emden in June 2024. The dispute over the collective agreement led to strikes at German container ports, halting activities at the Port of Hamburg for two days before a fourth round of negotiations began. The strikes later affected Wilhelmshaven, Bremen, and Emden, causing operational disruptions at container terminals. A prolonged strike could delay operations at Hamburg and Bremerhaven ports in August, severely impacting German exports, particularly in the automotive and machinery sectors.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, pricing dynamics for Ethylene Acrylic Acid Copolymer (EAA Copolymer) in the North American region displayed a fluctuating pattern, marked by an initial decline in January followed by surges in the subsequent two months. Notably, the USA experienced notable price fluctuations during this period, with EAA Copolymer market prices decreasing in January 2024 due to subdued demand caused by severe weather conditions during the arctic blast.
However, prices rebounded as demand recovered and the cost of feedstock imposed upward pressure. This increase was propelled by heightened demand from the downstream packaging industry, both domestically and internationally, along with constrained product availability in the market. Furthermore, there was an upsurge in the prices of feedstocks Acrylic Acid and Ethylene during this period, further contributing to cost pressures on the product.
Considering broader trends and seasonal patterns, it's worth noting that the first quarter typically experiences moderate demand. This, coupled with supply disruptions in the Panama Canal due to low water levels, has impacted price dynamics.
APAC
In Q1 2024, the pricing dynamics for Ethylene Acrylic Acid Copolymer (EAA Copolymer) in the APAC region have maintained overall stability. However, China has witnessed notable fluctuations in prices during this period. In Indonesia, market prices for EAA Copolymer CFR Tanjung Priok experienced an upward trend, with a 5% increase in January 2024 followed by stabilization for the rest of the quarter. This rise can be attributed to heightened demand from the downstream packaging industry and relatively limited product availability in the market. Additionally, while the cost of feedstock Acrylic Acid initially decreased, it rebounded by March, and another feedstock, Ethylene, exhibited an upward trajectory by mid-quarter, contributing to the price trend for EAA Copolymer. Considering broader trends and seasonal patterns, it's noteworthy that the first quarter typically witnesses moderate demand due to the Lunar New Year holidays. This, combined with challenges confronting the Chinese economy such as issues in the property market and subdued global demand, has impacted price dynamics. Furthermore, when comparing the first and second halves of the quarter, prices have remained steady.
EUROPE
In the initial quarter of 2024, Ethylene Acrylic Acid Copolymer (EAA Copolymer) pricing dynamics in the Europe region have generally stayed stable. However, Germany experienced significant price fluctuations during this period, with EAA Copolymer market prices rising in January 2024 before stabilizing for the rest of the quarter. This increase was driven by heightened demand from the downstream packaging industry, both domestically and internationally, particularly in Asia and the US, coupled with limited product availability in the market. Additionally, there was a surge in the cost of feedstocks Acrylic Acid and Ethylene during this period, adding to the cost pressures on the product. Considering broader trends and seasonal patterns, it's notable that the first quarter typically witnesses moderate demand. This, along with challenges facing the European economy and supply disruptions in the Red Sea, has influenced price dynamics. Furthermore, when comparing the first and second halves of the quarter, prices of EAA Copolymer have remained relatively stable in the European region.
For the Quarter Ending December 2023
North America
In the North American region, Ethylene Acrylic Acid Copolymer (EAA) experienced a fluctuating trend in the fourth quarter, characterized by an initial decline followed by a subsequent rise in the last two months.
The downturn in October was primarily driven by the alleviation in feedstock costs of Ethylene and Acrylic Acid. Concurrently, subdued demand from the downstream packaging sector contributed to a decrease in EAA prices. However, a notable recovery occurred as procurement activities strengthened in anticipation of the holiday season. Both domestic and international markets witnessed an upturn in demand from the downstream sector, prompting sellers to increase EAA prices.
The escalation in Ethylene prices further intensified cost pressures on the product. Complicating the market dynamics, disruptions in the supply chain within the Panama Canal, attributed to drought conditions, exerted additional influence on product pricing. Despite the challenges earlier in the quarter, the resilience of EAA became evident as market conditions improved, reflecting the intricate interplay of factors such as feedstock costs, demand fluctuations, and supply chain disruptions in shaping the trajectory of the market.
APAC
The fourth quarter of 2023 was characterized by a mixed market for Ethylene Acrylic Acid Copolymer (EAA) in the APAC region as the prices followed an upward trend, nevertheless depreciated by the end. The supply of EAA remained stable, but moderate, as Chinese manufacturers implemented production cuts to stabilize their margins. Further, the demand for EAA was low, both domestically and internationally, with only niche buyers showing firm interest. The prices of EAA experienced fluctuations due to the availability and international demand for the product. In terms of China, which saw the most significant changes in pricing, the market was influenced by factors such as low domestic demand and limited supplies from Chinese manufacturers while India and Indonesia also followed a similar trend. Traders practiced destocking practices, leading to a decline in prices as the quarter concluded. However, procurement activities and an expected improvement in economic activities were anticipated to support prices in the coming months. There were no reported plant shutdowns for Ethylene Acrylic Acid Copolymer during this quarter. The price of Ethylene Acrylic Acid Copolymer CFR Tangjunk Prior in Indonesia for the fourth quarter of 2023 is USD 4027/MT.
Europe
During the fourth quarter, the European market for Ethylene Acrylic Acid Copolymer (EAA) faced challenging demand dynamics, characterized by a brief uptick in October followed by a subsequent downturn for the rest of the quarter. The October increase in the European EAA market was linked to a marginal rise in the costs of feedstock Ethylene and Acrylic Acid. Market sources indicate that European EAA producers have been grappling with significant cost pressures over an extended period, compounded by weak demand fundamentals that have adversely affected their profitability. As November and December unfolded, the European market experienced a decline in EAA prices, primarily attributed to subdued demand in the downstream packaging sector. November witnessed diminishing new orders due to weak demand conditions, leading to job cuts and a pessimistic outlook for future output. Additionally, by mid-December, supply disruptions in the Red Sea further impacted the supply situation in the European region, adding another layer of complexity to the challenges faced by the EAA market during this quarter.
