Global Fluoroelastomer price witnessed stability in mid-April amid stagnant market demand

In the global market the price of the Fluoroelastomer witnessed a stable trend as of 3rd week of April.  This stability in the Fluoroelastomer price is majorly attributed to no aggressing biddings from the market participants in the inventories accumulation of destocking resulted into consolidated price trend from the past few sessions. During the same period, the automotive and aircraft manufacturing sectors experienced an uptick in demand, contrasting with the lackluster performance seen in other manufacturing sectors, as the European economy continued to struggle. These factors have significantly played a key role in influencing the overall pricing dynamics of the Fluoroelastomer in the respective market.

In the European market, the price of Fluoroelastomer has remained stable at 50650 USD/MT FD-Hamburg MV-30 as of 3rd week of April. Economic performance in France and Germany lags behind, while the UK is moderately successful. Conversely, Spain and Italy show more positive signs. European businesses are grappling with challenges including high inflation and borrowing costs due to elevated interest rates, leading to project delays or cancellations. Consumers face increased prices for essentials and services, along with higher mortgage costs, reducing disposable income. In the Aircraft market, recent updates from Airbus Aircraft include Honduras' acquisition of two additional Airbus H145 helicopters, Japan Coast Guard's order for three more H225 helicopters, and the UK Ministry of Defence's purchase of six additional Airbus H145 helicopters to streamline its rotary fleet. These factors collectively contribute to the stagnant price trend of Fluoroelastomer in the European market during the specified period.

In the US market, the price of Fluoroelastomer remained steady at 35500 USD/MT FOB-USGC MV-30 as of the third week of April. Economic activity in the US expanded slightly from late February through early April, with firms indicating expectations for stable inflation pressures, according to a Federal Reserve survey. This trend has prevented the central bank from cutting interest rates. The Fed is anticipated to maintain its policy rate within the current 5.25%-5.50% range at the end of its April 30-May 1 policy meeting, a level unchanged since last July. In the Aerospace sector, the leading Aircraft manufacturer reported a decline in Q1 deliveries to 83, down from 157 in Q4, reflecting ongoing safety concerns. Despite this, the Automobile sector is expected to demonstrate positive numbers this month. These combined factors have impacted the pricing dynamics of Fluoroelastomer in the US market.

According to ChemAnalyst's forecast, Fluoroelastomer prices are expected to demonstrate positive momentum in the upcoming sessions. This anticipation is mainly attributed to suppliers' continued destocking actions, which are projected to have a positive effect on price correction, thereby stimulating the overall pricing dynamics of Fluoroelastomer. Despite the Aerospace market's underperformance, the US market economy is currently experiencing outperformance, with other manufacturing sectors witnessing robust demand. This overall increase in demand from various sectors is expected to influence the overall demand for Fluoroelastomer positively.