The decline in Glass Fiber prices in the U.S. during October 2024, continued to be a noteworthy trend, driven by a reduction in new orders. Despite signs of recovery in the downstream automotive sector, consumer sentiment remained subdued, influenced by the uncertainties surrounding the impending Presidential Election, which, in turn, led to reduced trading activity. The abundance of domestic supplies and the end of the peak shipping season made an influx of cheaper imported volumes, all of which contributed to the downward trajectory.

Followed by September, the US Glass Fiber prices have significantly declined, with the rates falling by 2.6% in October to USD 1,140 per metric ton for E-Glass Fiber on a CFR basis in New York, due to an abundance of previous stocks. The end of the peak shipping season also played a role, as the demand for shipping containers reduced, which led to lower freight charges. Reduced freight charges in turn, decreased the overall cost of importing Glass Fiber, adding to the downward pressure on prices. Along with this, surplus inventory levels served as a buffer for manufacturers, enabling them to suspend replenishment orders. The market dynamics were further complicated by the influx of cheaper imported volumes. This intensified the competition among suppliers and exerted additional downward pressure on prices.

Moreover, the overall market sentiment for Glass Fiber was heavily influenced by the political climate. The uncertainty surrounding the Presidential Election created a cautious approach among consumers, leading to a slowdown in new orders for this commodity. Several manufacturers had built up significant inventories during periods of higher demand. As the demand slowed, these inventories began to exert downward pressure on prices. As global markets adjusted to various economic and geopolitical factors, the availability of more affordable Glass Fiber from international sources increased.

As per ChemAnalyst’s market estimation team, the Glass Fiber prices are expected to rebound this month, as the demand is likely to recover in the current post-Presidential Election scenario. The beginning of the winter season could lead to a resurgence of new orders from the downstream automotive sector, further driving the demand for Glass Fiber. Meanwhile, developments in the derivatives market, such as the recent partnership between ExxonMobil and Neuvokas Corporation, are expected to have a significant impact on the global market. By securing exclusive sub-licensing rights for Neuvokas' proprietary manufacturing process, ExxonMobil aims to expand the market for GatorBar, a leading Glass Fiber composite rebar, beyond North America.