The Fluoroelastomer (FKM) price in the global market witnessed a notable rise in H2 March. This increase in the FKM price is majorly attributed to the logistical imbalance and the supportive demand from the Aerospace sector. Market participants are optimistic for the recovery in the demand due to which accumulation is being done on a needy basis. These factors have collectively contributed towards influencing the FKM price upside globally.

FKM prices in Germany have risen as of H2 March. This increase in the FKM price is majorly driven by persistent supply challenges and steady demand from key sectors. Labor strikes at major North European ports have continued to cause shipping delays, leading to increased logistics costs. Additionally, production constraints among European suppliers have limited material availability, further pressuring the market. While the automotive sector faces challenges, strong demand from the aerospace industry has provided consistent support. With rising procurement costs, supply-side constraints, and firm downstream consumption, FKM prices in Germany have marked a notable increase, reflecting the prevailing market tightness and higher costing environment.

From the downstream Aerospace sector, In February 2025, Airbus delivered 40 aircraft to 25 customers, a sharp rise from the 25 aircraft delivered to 17 customers in January. This marks a 60% increase in deliveries and a 47% expansion in the customer base. While February saw 14 new orders, down from 55 in January, the strong delivery numbers highlight steady operational momentum. The rise in deliveries signals improved production efficiency and stable demand, even as new orders dipped slightly. Overall, February’s performance reflects Airbus’ ability to ramp up output while serving a broader customer base. From the Automotive sector, According to data from the Germany Federal Motor Vehicle Office (KBA), new passenger car registrations in Feb 2025 totalled 203434 units. This represented 2.0% month-on-month decrease and a 6.4% decrease compared to the same month last year.

FKM prices in the U.S. have risen as of H2 March. This increase in the FKM price is driven by stronger demand from the Automobile and Aerospace sectors. A steady rise in semiconductor sales has also played a role in pushing up consumption. Manufacturing output has picked up, and this time, it's more than just stockpiling—real demand is fueling the momentum. While exports remain weak, domestic buyers are keeping the market firm. At the same time, rising raw material and labor costs have led suppliers to adjust FKM prices, making the increase a reflection of both solid demand and higher production expenses.

As per the ChemAnalyst anticipation the price of the FKM is expected to showcase bullishness in the upcoming sessions. This bullishness in the FKM price is majorly linked with the projection of positive demand from the downstream market particularly Aerospace sector and the persisted logistical imbalance and the positive suppliers action which is expected to impact the overall pricing dynamics of the FKM globally.