Fluoroelastomer Price Going Up, Following Recent Recovery in the U.S Automotive Industry

Texas, USA: The third week of January 2023 witnessed a sharp increase in the market value of Fluoroelastomer in the USA. The prices for Fluoroelastomer MV 30 increased by 8.1% for FOB USGC during the week ending January 20. According to ChemAnalyst experts, the price increase in Fluoroelastomer is majorly caused by the upcoming mild recession and China's recent dismantling of the zero covid policy. According to numerous market analysts, the U.S. economy is about to experience a small recession after the country's inflation touched heights. A soft landing is anticipated because inflation has already reached a high point, and the market is currently going toward a moderate scenario.

According to experts, automotive sales in the U.S. are going up as the time for a mild recession has been approaching, supporting the market price growth for Fluoroelastomer. Despite economic challenges and increased financing prices, there is already a pent-up desire for automobiles purchase to offset these factors. Additionally, since China has removed several limitations related to its zero covid policy, the Chinese market has finally become more open, which has alleviated several supply chain concerns.

China is one of the main exporters of semiconductors to the world; thus, the U.S. automobile manufacturing companies can definitely breathe a sigh of relief following the reopening of the Chinese market. The automobile industry's supply chain issues concerning semiconductors and other components have virtually been resolved, which will improve automotive manufacturing and drive-up demand for Fluoroelastomer. Altogether, as the downstream automotive industry is making a noticeable recovery in the USA market, the demand for Fluoroelastomer has been rising, which eventually is causing a hike in its market value as well.

As per ChemAnalyst's anticipations, "Amidst higher semiconductor availability and rising demand for automobiles, the offtake of Fluoroelastomer would spike in the future weeks, ultimately leading to its increased market value."