Elastomer 210/220 Market Intelligence Report

I. Recent Price Trends
- May 19, 2026: The negotiated reference price for elastomer polyether 210/220 in Shandong and Northern China stood at RMB 9,700–10,000 per metric ton (cash-on-delivery, ex-factory), with the market maintaining a relatively weak sentiment. Quotations from producers saw only limited adjustments; actual transaction prices were largely negotiable downward on a case-by-case basis. Supply remained ample, and market participants adopted a cautious, wait-and-see stance.
- May 21, 2026: The negotiated reference price for elastomer polyether 210/220 in Shandong and Northern China was adjusted to RMB 9,500–9,900 per metric ton (cash-on-delivery, ex-factory), with prices stabilizing at closing. Downstream purchasing sentiment remained muted, with market attention focused on low-priced spot transactions.

II. Analysis of Key Market Influencing Factors
1. Upstream Raw Materials Market:
- Amid easing U.S.–Iran tensions, international crude oil prices declined—Brent crude fell by 5.24%—exerting downward pressure on the broader chemical industry.
- Prices of key elastomer feedstocks—including styrene and butadiene—edged lower due to sluggish demand in the Eurozone, weakening cost support for elastomers.

2. Downstream Demand Conditions:
- Elastomers serve diverse end-use sectors, including automotive, construction, healthcare, and consumer electronics. As the largest application segment, the automotive industry maintained stable growth—but at a decelerating pace.
- Construction-related demand exhibited seasonal fluctuations but remained broadly stable overall.
- Healthcare and consumer electronics sectors demonstrated sustained growth in demand for high-performance elastomers—emerging as bright spots in the market.

3. Macroeconomic Environment:
- Eurozone business activity contracted notably in May: the Composite Purchasing Managers’ Index (PMI) preliminary reading dropped to 47.5—the lowest in 31 months—dampening global commodity demand expectations and exerting a bearish influence on the elastomer market.
- In contrast, China’s economy continues to expand steadily, supported by enhanced policy stimulus—providing a degree of resilience to the domestic elastomer market.

III. Supply–Demand Landscape
- Supply Side: Elastomer supply remains abundant, with producers holding relatively high inventory levels and facing intense competition. To stimulate sales, some manufacturers have implemented price-cutting strategies, further pressuring market pricing.
- Demand Side: Downstream demand is increasingly bifurcated: traditional sectors such as automotive and construction are experiencing slower growth, whereas emerging sectors—including healthcare and consumer electronics—are witnessing robust demand expansion. Overall demand remains on a steady upward trajectory—but at a moderated pace.

IV. Market Assessment and Outlook
1. Short-Term Outlook:
- Elastomer 210/220 prices are expected to remain in a weak consolidation phase over the near term. Downward pressure from falling upstream feedstock costs and slowing downstream demand growth will likely preclude significant price rallies.
- To boost sales volume, producers may continue adopting aggressive discounting strategies, intensifying competitive pressures across the sector.

2. Medium-to-Long-Term Outlook:
- Sustained, steady economic growth in China—bolstered by supportive government policies—is expected to underpin continued, stable demand growth for elastomers.
- Rising demand for high-performance elastomers from healthcare and consumer electronics sectors will persist as key drivers of future market expansion.
- Producers are advised to closely monitor evolving market dynamics and shifting downstream requirements—and to prioritize technological innovation, product upgrading, and value-added differentiation to enhance competitiveness.