Global FKM Prices Remain Stable Amid Economic Challenges and Strong Demand

In the global market, the price of Fluoroelastomer (FKM) witnessed stability as of mid-October. This stability is primarily attributed to supportive downstream market demand, despite overall underperformance in economic activities. European countries are currently experiencing economic challenges; however, strong demand from the aerospace and automotive sectors has continued to balance the overall FKM market in the region.

In the European market, particularly in Germany, FKM prices experienced steadiness in mid-October. This stability in the FKM price is largely attributed to consistent pricing from major exporters in the region, especially the Netherlands and Japan. Total sales in the downstream automotive sector reached 208,848 units in September, reflecting a 5.8% increase from August. However, this figure indicates a 7.0% decrease compared to the same month last year, according to the KBA federal transport authority. However, this figure reflects a 7.0% decline compared to the same month last year, according to the KBA federal transport authority. In the aerospace sector, Airbus delivered 50 jets in September, a 9% drop from 55 jets delivered a year ago; however, overall deliveries for the first nine months of the year remained strong, with the company aiming for increased output in the final quarter. Positive demand from core sectors continues to influence pricing dynamics, and the balance in export prices from key manufacturers has also impacted FKM prices. However, imports of fluoropolymers made from vinyl chloride or other halogenated olefins in primary forms fell by 9.4% month-on-month, totaling 959 MT in July, as reported by the Federal Statistical Office of Germany.

FKM prices in the U.S. remained stable this week, despite significant disruptions in key downstream markets. Vehicle sales dropped to 1.17 million units, a 21.4% decrease from last month and 14.5% year-on-year, reducing the automotive demand for FKM seals and gaskets. In the aerospace sector, Boeing faced production challenges due to strikes, leading to $3 billion in charges for the 777X and 767 programs, delaying deliveries until 2026 and 2028. Boeing expects Q3 revenue of $7.4 billion with a negative operating margin of 54%, affecting FKM usage in aircraft components.

ChemAnalyst anticipates that FKM prices will likely show stable to bullish momentum in the upcoming sessions. This forecast is largely driven by projected demand from key sectors such as aerospace and automotive in the European market, which is set to boost FKM consumption. However, ongoing challenges at Boeing in the U.S. are likely to dampen FKM demand in the aerospace sector. Despite this, the decline is expected to be balanced by positive trends in automotive sales and rising overseas market demand for FKM.