The German Glass Fiber market has continued to showcase a downward trend in September 2024 followed by August, primarily driven by cheaper imports from Asian countries including China and Malaysia, and declining freight rates.

Despite a surge in the downstream automotive sales in Europe, the Glass Fiber market remained relatively lull in September 2024 due to a significant fall in the economy which dampened consumer confidence during this timeframe. According to the German Federal Motor Vehicle (KBA), the downstream automotive sector saw an increase in new passenger car registration in September when compared to the previous month, while declined year-over-year. However, the increase in vehicle sales failed to stimulate new orders for Glass Fiber amid previously accumulated inventory levels and intense competition from the global market contributed to sluggish demand. The availability of ample inventory levels, coupled with lower freight rates and improved container availability, reduced the immediate need for Glass Fiber purchases. This surplus inventory provided a buffer for manufacturers, allowing them to delay replenishment orders to settle the prices at USD 1100/MT E-Glass Fiber CFR Hamburg, Germany during September 2024.

Moreover, the end of the summer holiday season in August led to a temporary increase in business activity and, consequently, a rise in the supply of Glass Fiber. However, as the peak trading season subsided, container availability increased, resulting in a sharp reduction in freight costs from Asia to Europe. A decrease in container demand, primarily attributed to the easing of peak trading seasons and the diversion of shipping routes due to the Red Sea closure, has led to a reduction in shipping costs. This has made imports from Malaysia and China even more cost-effective, as the overall landed cost has been significantly reduced. Additionally, the appreciation of the Euro against the USD in September made imports from Malaysia even cheaper for European buyers. This currency advantage has further incentivized importers to source Glass Fiber from Malaysia rather than domestic or other regional suppliers. Furthermore, the German port strike has added uncertainty in the market which dampened market sentiment and prompted buyers to adopt a more cautious approach to their purchases. Aggressive promotional discounts offered by Chinese manufacturers due to stimulation of policy intensified competition in the Glass Fiber market.

As per ChemAnalyst, the Glass Fiber prices in Germany are expected to rebound during October 2024 on the back of tight supplies from Asia amid the Red Sea attacks could disrupt the delivery times leading to higher costs for the commodity.