Global Fluoroelastomer Prices Witness Decline Amidst Moderate Demands from Core Sectors

As of the first week of February, the global Fluoroelastomer market has experienced a declining trend since the third week of January. This decrease in the price of Fluoroelastomer is primarily attributed to the expected ample availability of inventories in the market. While the Aerospace and Defence sector demonstrated strong performance, the moderate to lower performance observed in the Automobile sector resulted in moderate demand for Fluoroelastomer in the regional market, contributing to the overall decline in prices during this period.

In the US market, Fluoroelastomer prices experienced a decline this week, reaching 35,000 USD/MT FOB-USGC and marking a decrease of 0.28% since the third week of January, primarily influenced by a mixed demand landscape from the aerospace sector. Boeing, a leading aircraft manufacturer, reported increased sales with 157 commercial airplanes delivered and 611 net orders, thereby impacting the demand for Fluoroelastomer. The aerospace industry's performance played a crucial role in maintaining prices during this period. In the Automobile market, January's new-vehicle sales are anticipated to show significant growth compared to the previous year's constraints, as forecasted by Cox Automotive. However, a 21.3% month-over-month decrease is expected in January following the historically high-volume month of December.

As of the first week of February, the Fluoroelastomer market in the European region, particularly in the Netherlands, witnessed a decline in prices, reaching 49,200 USD/MT FOB-Rotterdam and marking a decrease of 0.40% since the third week of January. The European Central Bank's decision to maintain record-high interest rates during its first meeting of 2024, along with the commitment to restrictive monetary policy, influenced various sectors, including the Automobile industry. Despite challenges in some sectors, the aerospace industry in Germany displayed resilience with positive sales growth. Airbus SE achieved a remarkable milestone, securing over 2,000 net orders in 2023, driven by heightened demand for fuel-efficient aircraft in the post-pandemic recovery phase. Similarly, in France, positive sales growth was observed in the aerospace sector, exemplified by Dassault's order for 42 Rafale F4 fighters from the French Air Force. Italy's automotive sector also exhibited positive growth, contributing to the overall demand for Fluoroelastomer in the European market. In the Netherlands, the price decline was influenced by supplier actions, including lower bidding activities and sufficient inventory availability.

According to ChemAnalyst's expectations, the price of Fluoroelastomer is anticipated to maintain a stable to lower trend. This outlook is grounded in the positive demand expected from the Aerospace and Defence sector, which is poised to provide crucial support to Fluoroelastomer prices. However, the anticipated moderate to lower performance in the Automobile sector is likely to contribute to a slight decline in the Fluoroelastomer price in the upcoming sessions.