For the Quarter Ending March 2024
North America
In the USA, the Fluoroelastomer market demonstrated consolidation trend in prices amid sectoral shifts. The automotive sector shows resilience with a positive performance, marked by the sale of 3,797,420 units in the respective period, signaling 2.83% decline from previous quarter but increasing month on month growth. However, the aerospace sector faced challenges, particularly with Boeing's decision to limit 737 productions due to increased regulatory scrutiny and safety concerns.
Boeing's 737 MAX jetliner production has sharply declined in recent weeks, impacting the overall aerospace industry. The Federal Aviation Administration's production cap and ongoing safety issues have further exacerbated the situation. Despite this, the Fluoroelastomer market in the USA shows an upward price trend, with prices reaching 35,280 USD/MT FOB-Texas MV-30, marking a 1.26% increment in Q1 2024 from Q4 2023.
This price incline is attributed to various factors, including steady demand from the automotive sector and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market. However the overseas market like Mexico, Brazil and the Canadian market also supported the price trend of the Fluoroelastomer in the respective quarter.
APAC
The Fluoroelastomer market in the APAC region witnessed an inclining phase in the current quarter of 2024 (Q1) from January to March. The overall market situation was positive, with adequate supply in the downstream market. However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period.
Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions. Totally 6717000 Units of Automobile sold in this quarter in the Chinese market which is comparatively lower as compared to the previous quarter. However the aerospace market is also underperforming in the Chinese market.
However in the Indian market, the activeness in the Indian government witnessed in the Aerospace sector. Hindustan Aeronautics Ltd the Indian Aerospace company as of March 31, 2024, has an order book exceeds Rs 94,000 crores, with additional major orders expected during FY 2024-25. Japan on the other hand replicated the overall asian market scenario being the major exporter of the Fluoroelastomer in the Asian market. As of this quarter ending the price of the Fluoroelastomer halted at 25440 USD/MT FOB-Tokyo marking an increment of 9.42% in this quarter.
Europe
In the European market the price of the Fluoroelastomer witnessed a notable decline in Q1 2024. This decline is majorly attributed to the decline in the overall manufacturing performance in the European economy particularly Germany. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors which has not impacted majorly in the price trend in this quarter.
However, amidst these factors, the downstream automobile market demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region.
Nevertheless in the Aerospace sector market total 142 deliveries to 45 customers given from the major Aircraft maker Airbus in this quarter. Notably, the latest reported price of Fluoroelastomer MV 30 FD Hamburg in Germany for Q1 was USD 50,390 /MT marking a decline of 1.01% from Q4 2023 to the current quarter Q1 2024.
For the Quarter Ending December 2023
North America
In the North American region, Fluoroelastomer prices saw a decline in the fourth quarter of 2023, aligning with the reduction in Crude Oil prices in the U.S. market. Despite a positive upswing in U.S. vehicle sales, with a noteworthy month-on-month increase surpassing expectations in December, economic challenges endured.
The overall economic landscape indicated a resurgence of declining output, accompanied by heightened declines in new orders, revealing vulnerabilities in both domestic and external demand. The decrease in crude oil prices contributed to reduced production costs for Fluoroelastomer, with industries maintaining ample inventory and operating with moderate supply levels. However, challenges arose in the Panama Canal, where significant vessel draft limitations resulted from unusually low water levels in Gatun Lake, leading to traffic buildup. This situation prompted companies to adapt their input procurement strategies.
Fluoroelastomer supply levels remained elevated. The contraction in the European automobile market had a substantial impact on Fluoroelastomer exports, contributing significantly to the quarter's price decline. The quarter concluded with Fluoroelastomer priced at 34840 USD/MT FOB-USGC, reflecting a decline of 1.23%.
APAC
At the close of the fourth quarter in 2023, Fluoroelastomer prices in the Asia-Pacific (APAC) region displayed a bearish trend, primarily driven by an excess of supply despite substantial demand from the automotive sector across Asian countries. Notably, the aerospace industry, particularly in India, reported strong sales. However, this bearish trend persisted amid varied economic conditions and fluctuations in the global market's supply and demand dynamics, with suppliers maintaining sufficient inventories. The decrease in crude oil prices and an imbalance in the demand and supply chain among various suppliers contributed to the overall price decline. Suppliers responded to lower bids for fresh accumulation by reducing their ex-quotation prices. Given the prevailing downtrend where there is likely probability for the price incline, suppliers adopted a cautious "wait-and-watch" approach for fresh inventory accumulation, leading to a decline in prices during this quarter. As of this quarter's conclusion, the Fluoroelastomer price stood at 23250 USD/MT FOB - Tokyo, marking a decline of 4.95%.
Europe
As the Fourth quarter of 2023 concluded, Fluoroelastomer prices in Europe demonstrated a bullish trend, primarily influenced by low supply, and subdued demand from the automotive sector. While the continuous decline in crude oil prices helped manage production costs, heightened geopolitical tensions across the Red Sea significantly contributed to increased importing costs during the period, exacerbated by major shipping companies rerouting their routes and resulting in port congestion this quarter. Despite maintaining a well-balanced supply and demand, leading to limited material availability, the market experienced minimal price fluctuations throughout the quarter. Germany's long-term interest rates declined to stabilize retailer consumption, impacting not only the automotive sector but also various other industries. However, the anticipated rise in energy and other utilities costs globally during the winter, combined with the overall economic contraction in Europe and lower inventory stockpiles, resulted in a price increase this quarter. The Fluoroelastomer MV 30 FD in Antwerp, Belgium, concluded the quarter at USD 50200/MT, reflecting a rise of 7.09%.
For the Quarter Ending September 2023
North America
The Fluoroelastomer market experienced a mixed performance in the third quarter of 2023. It began positively but faced a significant decline in August before stabilizing in September. In July, Fluoroelastomer prices in the US market surged due to strong demand, driven by a substantial increase in vehicle sales in both the US and Western Europe, which boosted the need for Fluoroelastomers. Consequently, the procurement of Fluoroelastomers increased in the first week of July. In June, the US manufacturing Purchasing Managers Index (PMI) dropped from 48.4 in May to 46.3, mainly due to decreased new orders for certain products, lower input costs, and accelerated destocking. This declining PMI indicated a decrease in industrial activity, contributing to various commodities' rising prices. However, despite a positive outlook for the automotive industry downstream, Fluoroelastomer prices declined in August due to the decreasing market value of the feedstock Fluorspar. Towards the end of the quarter, the prices of Fluorspar began to stabilize, which helped maintain a balanced supply and demand situation in the Fluoroelastomer market, consequently stabilizing prices in September.
APAC
In contrast to North America, the Asia-Pacific (APAC) region experienced a consistent reduction in Fluoroelastomer prices during the third quarter of 2023. The Asian new vehicle market witnessed a remarkable in quarter 3 of 2023. This positive shift can be attributed to the gradual recovery from the impact of COVID-19 lockdowns, which began easing in the latter part of the prior year. Furthermore, the improved availability of semiconductors enabled automotive manufacturers to ramp up production and reduce order backlogs. However, despite a strong demand from the downstream automotive industry, the prices of Fluoroelastomer kept declining in the Asian market. This decline can be attributed to a combination of factors, including a concurrent decrease in the prices of feedstock Fluorspar and an escalation of competition within the market. These factors have fundamentally reshaped the pricing dynamics within the Fluoroelastomer sector. The decline in Fluorspar prices, which is a pivotal component in the production of Fluoroelastomers, has directly impacted the overall manufacturing costs, prompting a necessary downward adjustment in the pricing of the final products. Additionally, the heightened level of competition in the market has driven manufacturers to strategically reposition their products, leading to a broader reduction in prices aimed at maintaining competitiveness in the industry.
Europe
In the European market during the first two months of the third quarter in 2023, Fluoroelastomer prices experienced a decline, but they later stabilized in September. This price drop resulted from a notable reduction in production costs, which was linked to the prolonged decrease in the price of the raw material Fluorspar. This decrease in raw material costs directly impacted the final pricing of Fluoroelastomer, leading to a continuous downward trend in its market price. As a result, despite positive developments in the automotive sector, the European Fluoroelastomer market continued to be influenced by the ongoing cost dynamics driven by the weakening raw materials prices. However, as the quarter approached its end, prices stabilized primarily due to minimal fluctuations in the costs of Fluorspar. This stability in raw material prices was a significant factor in supporting the Fluoroelastomer market. Additionally, the automotive industry's performance, both domestically and globally, remained consistent during this period. This steady demand and production in the automotive sector played a crucial role in maintaining the stable market value of Fluoroelastomer.
For the Quarter Ending June 2023
North America
The North American market witnessed mixed sentiments in the pricing trend of Fluoroelastomer during the Q2 of 2023. The Fluoroelastomer prices showcased a declining trend in April, only to surge significantly in the rest of the quarter. Fluoroelastomers prices declined in the first month as the US automobile industry faced difficulties due to rising interest rates and negative economic conditions. In addition, a consistent decrease in the prices of feedstock Fluorspar further contributed to the decline in the market trend. However, the prices of Fluoroelastomers increased significantly in the last two months of the quarter, especially in June, due to the overwhelming market performance of the automotive sector. Vehicle sales increased by over 20% in the US market in June, while sales increased by around 19.6% in Western Europe, significantly increasing the demand for Fluoroelastomers. As a result, the demand for Fluoroelastomers increased. The US manufacturing purchasing managers index (PMI) declined further in June to 46.3 from May's 48.4. The further decrease in PMI was driven by a decrease in new orders for certain products, a decrease in input costs, and a decrease in the country's industrial activity rate. This further contributed to the rise of prices of several commodities.
APAC
The second quarter of 2023 saw a rollercoaster of Fluoroelastomer market trends in the Asia-Pacific region. Fluoroelastomer prices crashed in April, surged in May, and fell again in June. The prices dropped in April and June due to a combination of factors, most notably overstock and increased market competitiveness—excess inventories accumulated due to increased production and supply of fluoroelastomers. As a result, suppliers and manufacturers were forced to reduce inventories and lower prices to remain competitive. In addition, the presence of rivals vying for market share increased competition, necessitating price adjustments to attract customers. This decline in Fluoroelastomer prices in Asia reflects the challenges facing the industry in balancing supply and demand and the need for market participants to adapt to changing market conditions. However, May's price gains were driven by strong demand from downstream industries. While the price of the main raw material, fluorite, stabilized or even declined, keeping input costs low, the market value of Fluoroelastomers rose due to a resurgence in downstream consumption. The strong development of the automotive sector in other Asian countries contributed to a significant increase in demand. Declining industrial activity also contributed to the price increase.
Europe
In Q2 2023, as in North America and APAC, the prices of Fluoroelastomers followed a mixed pattern in Europe. In the Netherlands, prices initially increased due to increasing demand from the global market. As the demand from the international market increased because of the improved market performance of the automotive industry, the export price of the product increased. Furthermore, the automotive sector in the Netherlands increased the consumption of fluoroelastomers. However, the demand sentiment for the Fluoroelastomer was subdued in the second half of the quarter due to the surplus availability of the inventories. The Dutch market's Manufacturing PMI decreased further into the contraction zone, indicating a decrease in industrial activity in several sectors. Global industries were further affected by the rise in interest rates and economic uncertainty, a decrease in new orders, and a further decrease in raw material costs over the week. This decrease in raw material costs combined with falling energy prices resulted in a significant decrease in Fluoroelastomer upstream expenses resulting in a decrease in the market value of Fluoroelastomer.
For the Quarter Ending March 2023
North America
The North American market witnessed positive market sentiments for Fluoroelastomer during Q1 2023, except for the first month when the Fluoroelastomer prices remained constant. A sharp increase in the prices was observed during February when the supply of semiconductors improved, and hence the industrial output of the automotive industry increased, which surged the consumption of Fluoroelastomer in the market. Furthermore, there was pent-up demand for automobiles in the market, which raised the demand for automobiles, in turn, increased Fluoroelastomer procurement. However, the growth momentum of the Fluoroelastomer market slowed down in March owing to the collapse of the two major banks in the country, which caused economic instability and negatively impacted the sales of automobiles. Hence, in the USA, the assessed price of Fluoroelastomer MV 30 was USD 34400/MT FOB USGC in March, which highlighted a rise of 19.8% in comparison to December.
APAC
The price of Fluoroelastomer rose consistently in the Asia-Pacific region during the first quarter of 2023, backed by resurgent downstream demand. As soon as the first quarter of the year started, the automotive industry showcased a surge in the market, which led to an increment in Fluoroelastomer procurement. Initially, the pace of growth in the automotive industry was slow as the industry was trying to recover from the losses in the past year; however, a hike was observed during February as the industrial output and sales of the automotive industry recovered significantly. However, as the quarter approached the end, the growth momentum of the automotive industry slowed once again owing to global economic instability. Hence, In Japan, the price of Fluoroelastomer MV 30 assembled at USD 38660/MT FOB Tokyo in March, which highlighted a price rise of 29.5% in comparison to December.
Europe
The Fluoroelastomer market showcased mixed sentiment in the European market. The Fluoroelastomer price fell in the first month of the quarter and then significantly increased in the following months. As China's market finally began to open more in February, Fluoroelastomer prices experienced a sharp increase. An enhanced semiconductor supply supported this increase. The output of the automobile industry expanded along with the supply of semiconductors, which led to a spike in the industry's demand for Fluoroelastomer. Also, there was an increase in automobile sales during the quarter due to pent-up demand in the European market, which ultimately led to an increase in inquiries for Fluoroelastomer. Hence, in Germany, the Fluoroelastomer MV 30 prices settled at USD 47720/MT FD Le Havre in March and indicated a price rise of 52.1% from December.
For the Quarter Ending December 2022
North America
Amidst fluctuating downstream demand from diverse industries, the market value of Fluoroelastomer in North America showed conflicting emotions in the fourth quarter of 2022. The demand for Fluoroelastomer from the downstream automotive and aerospace industries continued to be stagnant to weak throughout the quarter due to the unsteady growth of these sectors. Additionally, shifting production costs and upstream costs contributed to the altering market conditions for EPDM Rubber. Fluoroelastomer's price thus increased in October and decreased in the next two months. In the USA, Fluoroelastomer MV 30 was valued at USD 28724/MT FOB USGC in December, which was 5.4% less expensive than the price in September.
APAC
The fourth quarter of 2022 saw a further reduction in the market value of Fluoroelastomer in the Asia-Pacific region because of weak downstream demand and declining manufacturing costs. The demand for Fluoroelastomer from the downstream aerospace and automotive sectors decreased because of the market's lackluster performance in terms of sales and industrial output during the quarter. As the price of crude oil and natural gas fell, so did the cost of producing Fluoroelastomer, lowering the commodity's value in the domestic market. Consequently, Fluoroelastomer MV 30 was estimated to cost USD 19302/MT CFR Shanghai in December, which is 20.7% less than in September.
Europe
Amid sluggish downstream demand and falling manufacturing costs, the market value of Fluoroelastomer in the European market decreased even further in the fourth quarter of 2022. Due to the market's underwhelming performance in terms of sales and industrial output during the quarter, the demand for Fluoroelastomer from the downstream aerospace and automotive sectors declined. Fluoroelastomer's worth in the domestic market decreased as the cost of making it reduced along with the decline in the price of crude oil and natural gas. As a result, it was determined that Fluoroelastomer MV 30 would cost USD 32309/MT FD Hamburg in December, which is 10.5% cheaper than in September.
For the Quarter Ending September 2022
North America
Fluoroelastomer prices have fluctuated in the US market throughout the 3rd quarter due to high volatility in supply-demand dynamics. Fluoroelastomer prices declined sharply in the first two months of the quarter as the demand from downstream automotive and allied industries remained weak, culminating in sluggish offtakes. Meanwhile, production rates from 3M and other producers have been termed as firm resulting in stable supply dynamics. Market dynamics shifted the balance towards the end of the quarter as Fluoroelastomer prices rebounded in September 2022. In late Q3, demand from the downstream automotive industry increased, resulting in improved prices in the US market. There were speculations around rail strikes in several parts of the US. However, none came to fruition resulting in stable supply chains. Hence, as of September 2022, Fluoroelastomer prices were assessed at USD 32340 per MT on a FOB basis for grades with MV 25-61.
Asia
In Japan, Fluoroelastomer prices declined consistently in the first two months owing to weak demand sentiment and ample material availability. The first half of the third quarter also witnessed weak international demand for Japanese Fluoroelastomer. Market sentiment remained under pressure as the automotive output on the global level remained underwhelming. However, pricing sentiment changed in the later stages of the quarter on the back of stable demand in the domestic and international markets and constrained supply dynamics. Northeast Asia faced the wrath of several typhoons during September 2022, which majorly curtailed the supply chains of Japan, resulting in limited material availability in the market. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 45740 per MT on a FOB basis for grades with MV 25-40. In China, sluggish automotive output culminated in weak demand for Fluoroelastomers; thus, prices remained under pressure.
Europe
In Northwestern Europe, Fluoroelastomer prices seesawed during the third quarter of 2022. Prices declined sharply in the first two months owing to sluggish output rates from the automotive industry. The European region remained in the tight grip of inflation during the third quarter, following the previous quarter's trend. High energy prices, declining consumption rates, and a soft demand outlook culminated in growing speculations around a European recession. However, an increase in automotive sales in the second half of Q3 prompted demand for Fluoroelastomers in the automotive industry. An increase in demand from the downstream automotive caused spike in the prices. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 34920 per MT on FD basis for grades with MV 25-61.
