Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
      • 2023 winners
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Bioplastics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
October 07, 2016 02:00 AM

Speaker: Areas of growth exist for global TPE market

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Robert Eller

    Fairlawn, Ohio — The global thermoplastic elastomer market is maturing in some sectors, but still has areas of growth, according to market analyst Robert Eller.

    “There's global competition now,” Eller said at TPE Topcon 2016, a conference hosted by the Society of Plastic Engineers, Sept. 20-22 in Fairlawn. “Some TPEs are viewed as commodities, and their growth is slowing.

    “The structure for those TPEs is shifting because of price pressure and overcapacity,” he added. “There's saturation in some market sectors.”

    Use of thermoplastic polyolefins (TPOs) in auto bumper fascias and of thermoplastic polyurethanes (TPUs) and styrenic block copolymers (SBCs) in footwear are two TPE uses that are at the saturation point, said Eller, president of Robert Eller Associates in Akron, Ohio.

    Uses of various TPEs for “soft touch” in sports, appliance, leisure and tool markets are areas that are mature and close to saturation, according to Eller.

    “The cycle was dominated by major material companies at first, then by compounders, and then the market saw price decline and more competition,” he said.

    Most recently the TPE market has seen a second wave of Asian and European compounders moving into North America to follow customers. They've done so with greenfield projects, toll compounding, distribution and acquisition, according to Eller, who founded his firm in 1991.

    Companies in this second wave include Kingfa, LCY, Mitsubishi, Polymax, Pret, So.f.ter and TSRC.

    Asian compounders in particular “want to access Western markets and to learn Western marketing skills,” he explained. “They have compounding skills and lower-cost ways to serve lower-priced segments. And some Chinese compounders have moved up the quality scale.”

    Competition among different types of TPEs also is affecting the market. “Boundaries are getting blurred,” Eller said. “SBCs are challenging TPUs when [TPUs] are over-engineered, and SBCs are competing with copolyesters in airbags.”

    Copolyesters also are competing with TPUs in some high-heat application. “What's happening is that we're becoming better compounders,” Eller explained.

    TPEs also could benefit by improving their performance in certain attributes.

    “Customers still want TPEs for soft touch, silky feel and wet grip, but the materials could use higher temperature resistance — they need to go above 150° C for underhood applications,” Eller said.

    Scratch resistance in TPEs also could be improved needs improvement, he added. And sealing performance could be improved to approach that of butyl rubber and silicone.

    But all is not lost in the TPE field. Eller cited use of TPU bead foams made by BASF SE in footwear as a strong new application.

    He added that using polyolefin elastomers as modifiers in SBCs is allowing for the creation of new low molecular weight grades that can be used in new applications.

    TPEs still have many opportunities in the auto market.

    “Performance standards are changing, and that creates new opportunities,” Eller said. Thermoplastic vulcanizates and SBCs are challenging EPDM materials in auto glazing seals. TPEs also are moving into door seals and trunk seals. And even a basic market like floor mats presents a 300-million-pound opportunity for SBCs, according to Eller.

    Low-cost TPOs also are seeing growth in auto interior skins, and slush-molded TPEs from Kraton Polymers are expected to be used in auto panels in the near future.

    In the medical market, TPEs continue to see high growth despite early penetration. Prices for TPEs sold into medical applications can be two to three times higher than those sold into commodity applications. SBCs have been dominant in TPE medical uses, but copolyesters also have found a home in breathable films and gowns.

    Graphene — a form of carbon — also has extended TPEs into conductive and “smart” applications, Eller said.

    Geographically, TPE investment “has been flowing both ways,” he added, although Asia still represents major TPE volume growth. “Technology went to Asia then back-flowed to North America as companies followed their customers,” Eller said.

    And although emerging market growth has slowed in recent years, Eller said that China and India remain growth markets for TPEs.

    RECOMMENDED FOR YOU
    Linamar buys EV battery enclosure business from Dura-Shiloh
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Treaty talks end with plans for a draft agreement, but hurdles remain
    2
    Resin Prices
    3
    Resin Prices - North America
    4
    WL Plastics building $40M MDPE pipe plant in Texas
    5
    PP recycler PureCycle sees Ohio plant as springboard for growth
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
          • 2023 winners
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Bioplastics Live
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified