Glass Fiber Prices Plummet in the US Amid Supply Chain Relief During August 2024

The US Glass Fiber market experienced a significant downturn in August 2024 after witnessing supply chain disruptions due to hurricane seasons. Previously, the supply chain was severely disrupted by the start of the rainy season, which led to bullish sentiment in the Glass Fiber market. Moreover, the hurricane season further hampered the supply chain activity. However, during August the ease in supply pressure coupled with reducing freight costs, economic uncertainties, and intense competition from Chinese manufacturers, all contributed to the downward pressure on prices. While the downstream automotive sector's recovery provided a temporary boost, it was ultimately insufficient to counteract these negative influences. As a result, the Glass Fiber prices in the USA showcased a considerable downward trend in August 2024.

Despite the increased demand from the automotive industry, a key consumer of Glass Fiber, the market remained sluggish. As per the data, the number of new vehicles sold in the US in August 2024 increased by 6% compared to the same month last year along with the rise in total inventory levels. This rise was partly attributed to improved inventory conditions and increased promotional activities during the Labor Day weekend. However, the increased sales for the downstream automotive sector do not translate to an increase in the consumption of Glass Fiber. Firstly, the abundance of inventory levels, combined with lower freight rates and improved container availability, led to reduced consumption. Secondly, uncertainties arising from a brief Canadian rail lockout and the potential threat of an ILA port worker strike in October dampened market sentiment and decreased purchases. Economic concerns also played a significant role. A slowdown in the US job market, as evidenced by weaker-than-expected job growth in August, raised questions about the economy's ability to withstand higher interest rates. This uncertainty negatively impacted market sentiment and reduced demand for Glass Fiber. Furthermore, aggressive promotional discounts offered by Chinese manufacturers intensified competition in the market. This heightened competition put downward pressure on imported Glass Fiber prices in the USA, further contributing to the overall bearishness to settle at USD 1210/MT E-Glass Fiber CFR New York (USA), August 2024 with a monthly drop of 3.9%.

As per ChemAnalyst, the Glass Fiber prices in the USA are expected to decline further in September 2024 amid a decrease in the foreseen demand for Glass Fiber from the overseas market. Consecutively, cheaper imports from Malaysia and China may decline the prices further during this timeframe.