Deterred Market Demand Drives European Glass Fiber Prices Down in April 2024

The European Glass Fiber market has experienced a sustained and concerning price decline, impacting both domestic demand and the global landscape. This downward trend was particularly prominent in Germany and continued throughout April 2024 due to weak downstream automotive demand as well as the oversupply of the product from China. The European Glass Fiber industry has faced more pressure due to the continuous pressure on prices and the increasing expenses of numerous manufacturing components. Concerning unprofitable production, Nippon Electric Glass notes that China's volume surplus drives down pricing during April 2024.

Compounding the problem was the European automotive industry, another key consumer Glass Fiber, witnessing a decline in sales during April which reduced the overall buying activity for Glass Fiber in the region. Not only the downstream automotive sector but also Europe's construction industry, the primary consumer of Glass Fiber, has been struggling for months. The persistent rise in Eurozone interest rates has led to a significant drop in new orders for Glass Fiber. Companies, apprehensive about increased borrowing costs and the viability of their projects under these conditions, have either delayed or completely canceled construction plans. This decline in construction activity directly translates to a reduced demand for Glass Fiber.  A significant factor driving down prices was the influx of cheaper imports from China. These competitively priced materials have flooded the European market, exerting substantial downward pressure on domestic Glass Fiber prices. Existing trade barriers haven't been enough to shield European manufacturers from this intense competition. Moreover, the situation was further exacerbated by a global supply glut. Regional and international markets have experienced similar declines, creating an overabundance of Glass Fiber globally. This excess supply further weakens the already struggling European market.

While not the primary factor, declining freight charges from Asia to Europe, due to easing disruptions in container traffic, have added another layer of pressure on profit margins. This situation forces European manufacturers to slash prices even more just to remain competitive. This influx of competitively priced materials further weakens European manufacturers' ability to compete, forcing them to lower their prices yet again. Additionally, declining global demand coupled with a global supply glut further amplify the downward pressure on European Glass Fiber prices.

As per ChemAnalyst, the imported Glass Fiber prices in Germany are expected to showcase a rebound during May 2024 as the anticipated rise in crude oil prices may lead to higher transportation costs, including freight charges, increasing overall product costs.