Despite a resurgence in the automotive industry, a key downstream user of Glass Fiber, prices for this material in the US continued a downward spiral throughout March 2024. The current decline in US Glass Fiber prices appeared to be a continuation of a broader global trend due to a slowdown in global demand and a sluggish economy. During this timeframe, the influx of competitively priced imports from Asia, a prominent Glass Fiber producer, puts significant downward pressure. This price competition effectively undercuts US manufacturers, making it difficult for them to compete on price alone.

Faced with falling demand and an influx of cheaper imports, US Glass Fiber manufacturers found themselves in a difficult position as manufacturers prioritized selling existing stock over potentially raising prices to settle at USD 990/MT E-Glass Fiber CFR New York (USA) during the end of first quarter 2024. The market became saturated with readily available, cheap Glass Fiber options. This oversupply situation weakens the bargaining power of US producers and incentivizes buyers to hold out for even lower prices. Moreover, as shipping from Asia eased, a major Glass Fiber production hub became cheaper, and it became even more economical to import the product during March 2024. As the weather improves and demand declines, ocean rates from Asia to the USA decreased by 17.40% during March. The combined effects of weak domestic demand, cheaper imports, a global supply glut, and declining freight costs have created a persistent downward pressure on US Glass Fiber prices.

The demand for the Glass Fiber in the USA was muted due to the Easter festival with market sources expected to remain thin. The procurement for Glass Fiber was minimal, and only limited orders on demand followed. New order transactions remained flat, and the Glass Fiber market was under pressure. The deceleration, spearheaded by Tesla, validates automakers' concerns that they rushed into capturing EV consumers. The EV proportion of overall U.S. sales dropped to 7.15% in the initial quarter. Nonetheless, new vehicle sales in the U.S. climbed by 5.1% from January to March, demonstrating buyers' persistence in the market despite elevated interest rates. Although the upswing in the automotive sector was encouraging, it failed to counterbalance these overarching market dynamics.

As per ChemAnalyst, the imported price for Glass Fiber in the USA is expected to surge in the upcoming month due to the recent disruption caused by the Baltimore collapse. Moreover, an increase in the transporting fuel due to the expected rise in the prices of crude oil may increase the freight charges and further add up to the overall cost of the product.