Global TPE Market Stays Stable as December Approaches, Amid Weak Demand and Feedstock Price Fuctuations As December 2024 approaches, the global Thermoplastic Elastomer (TPE) market has experienced stability in key regions, including NorthAmerica and Europe, despite fuctuations in feedstock prices and varied demand conditions. While production costs were impacted bychanges in Styrene prices, the sufficient availability of TPE in the market prevented manufacturers from increasing prices. In the North American market, TPE prices remained stable, largely due to Us suppliers preferning to keep prices unchanged and notnegotiating. This stablity was influenced by a drop in Styrene production in November 2024, with operating rates decreasing from 96% inOctober to 929%, Despite this reduction in production, TPE supplies across the Us remained plentiful. Exports of plastics,incuding TpE, fell bymore than 10% weekon-week through the end of November 2024. Railcar loadings also dropped by approximately 30,263, according to datafrom the Association of Amencan Railroads, further exerting downward pressure on export prices for TPE, with final prices assessed as USD6060/MT FOB Chicago In Europe, TPE prices held steady, although production conditions continued to be impacted by ongoing maintenance turnaroundsparticularly wth extended holidays across the region. Styrene prices dropped by approximately 8% during the latter half of November 2024due to oversupply conditions in the market, This was refected in the fact that, on December 1, a 5.000 MT styrene cargo was fixed from StJames. ouisiana. to the Amsterdam-Rotterdam-Antwerp region, which arived in early Decembe, Additionally, a further 8.000 MT Styrenecargo was loaded in Lake Charles for Antwerp, which contributed to a supply glut in the furopean Styrene market, thereby puting downwaropresure on TPE production costs. Demand for TPE remained weak in furope, with particularly poor performance from the automotive sectorwith final prices assessed at USD 4560/MT FOB Antwerp. Across Southeast Asia, especialy in China, TPE prices faced a stable pattern for the last fortnight after experiencing a 1.4% decining trend.The total sample inventory of Styrene at liangsu ports stood at 26,900 tons, an increase of 9,900 tons from the previous cycle, marking a58.24% rise. Styrene inventory reached 17,000 tons, up by 7,000 tons from the previous cyce, a 70% increase. Overal, the styrene inventoryat East China ports was 42,300 tons, up from October 2024 levels, while the inventory at South China ports dropped to 3.800 tons, adecrease from month to month. These factors kept the production of TPE in China in check, though the overall outout of Chinas styreneplants was 295 400 tons, down 10,400 tons from the previous period, representing a 3.4% decrease. The plant capaciy utlization rate stoodat 66.01%, down 2.32% from the previous period, which maintained upward pressure on TPE production in China, with final prices assessed atUSD 2083/MT FOB Shanghai In China, demand for TPE remained relatively strong, driven by a rebound in the new-vehice market, which saw an 18% yearon-year increasein November 2024, supported by a government scrappage program. This has somewhat sustained domestic consumption of TPE, Despite theuncertainty in the Styrene market and pressure on Chinese suppliers to iguidate inventories, Chinese suppliers have opted to maintain stableprices, preventing any significant fluctuations at the start of December 2024.Looking forward, global TPE prices are expected to decrease by the end of December 2024 as suppliers across regions try to liquidateinventones before year-end. Demand conditions are anticipated to remain moderate, with suppliers in al regions expecting itle recovery indemand from the automotive sector before 2025. With increasing pressure to clear stocks, the market is likely to remain in a delicate balancethrough the close of the year.