High Import Cost Rises PTFE Prices in Europe and the United States

Fluoropolymers (PTFE) prices have been increasing since the beginning of January due to the high import costs from Asia. The demand from downstream automotive industries has somewhat increased in Europe and the United States.

In Europe, the cost of PTFE is increasing week-on-week basis due to several reasons, such as moderate inflation, high-interest rates, and geopolitical tension in the region. Europe is importing PTFE from Asia at a high cost, have directly reflected in the domestic market of European countries. On the other hand, the downstream automotive industry is slightly improving, and the orders from these industries are increasing; as a result, the cost of PTFE is inclining in the European market. Meanwhile, the German construction industry continued to contract despite ongoing demand pressure driven by rising interest rates and inflated prices for other petrochemical products. Additionally, the product's supplies remained adequate, and the material's import availability in Europe remained stable. Nevertheless, no significant port congestion has been noticed at this time.

ChemAnalyst says that during the week that ended February 17, 2023, the price of PTFE was USD 10840/MT on a CFR Hamburg basis.

On the other hand, the high cost of Asian import cargo is driving the price of PTFE in the United States. Automobile sectors are improving, and orders from the end-user industry indicate some interest in the market despite the construction industry's slump. Additionally, the supply chain in the region has been disrupted by the severe storm in some parts of the United States, which may have precipitated a significant amount of snow. The price of PTFE was observed at USD 11430/MT on a CFR New York basis during the week ending February 17, 2023.

As per the analyst, the price of PTFE is anticipated to increase in Europe and the United States in the upcoming weeks due to improvements in the downstream automobile sector. As demand rises in the near future, Asian imports may become more expensive.