For the Quarter Ending December 2024
North America
The North American Glass Fiber market experienced a significant decline in prices throughout the fourth quarter of 2024. Despite a rebound in the automotive sector during October 2024, consumer sentiment remained subdued due to uncertainty surrounding the Presidential Election, leading to subdued trading activity. Ample domestic supplies from previous stockpiles further pressured Glass Fiber prices downward.
The post-peak shipping season resulted in reduced demand for shipping containers, leading to lower freight charges. This, coupled with an influx of cheaper imported volumes, intensified competition and put downward pressure on prices. The surplus inventory also provided a buffer for manufacturers, enabling them to delay replenishment orders.
Aggressive destocking activities, coupled with weakening demand from key downstream automotive sectors have eroded market demand and exerted significant downward pressure on Glass Fiber prices. Moreover, the typical holiday seasonal slowdown has declined consumer confidence in the USA which created a bearish market environment during December 2024. Henceforth, despite a surge in freight charges from Asia to the USA boosted by frontloading in anticipation of potential tariff hikes, supply chain activity remained smooth during December 2024.
APAC
Glass Fiber pricing in the APAC region for Q4 2024 has seen a notable decline, followed by immense stability. Glass Fiber prices in Malaysia remained stable at USD 960/MT E-Glass Fiber FOB Tanjung Pelepas in October 2024. This stability occurred despite a dip in sales from the automotive sector. Retail sales in Malaysia's downstream automotive sector declined by four percent in October 2024, reaching 69,859 units compared to 76,173 units in the same month of the previous year, according to the Malaysian Automotive Association (MAA). Intense competition among manufacturers prevented price adjustments, with companies maintaining consistent quotations. The ending of the peak shipping season in October led to a decrease in container demand and subsequently lower freight charges. However, severe flash flooding in Kuala Lumpur disrupted the Malaysian supply chain, partially offsetting the impact of declining freight costs. However, as December 2024 approached, heavy discounts offered by manufacturers to clear inventory amid a surge in destocking activities across the industry led market players to decrease their prices.
Europe
In Q4 2024, the Glass Fiber market in Europe experienced a mixed trend. In October 2024, Glass Fiber prices faced downward pressure amid a decline in new orders. Despite a rebound in the automotive sector, consumer sentiment remained subdued due to a surge in inflation. Moreover, ample domestic supplies from previous stockpiles further weakened demand. The post-peak shipping season resulted in lower container demand, reducing freight charges and shortening delivery times. The influx of cheaper imported volumes intensified competition and exerted downward pressure on prices. This, combined with surplus inventory, enabled manufacturers to delay replenishment orders. However, during November 2024, the Glass Fiber prices in Germany rebounded amid robust demand for glass fiber has emerged from the reviving automotive industry, a crucial material for numerous automotive applications. Furthermore, port congestion caused by flash floods in Malaysia has disrupted importations from key suppliers, leading to extended shipping times. Expectedly, during December 2024, aggressive destocking activities across the industry led several manufacturers, to offer significant discounts to clear inventory. These heavy discounts exerted significant downward pressure on Glass Fiber market prices.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Glass Fiber market experienced a notable decline in prices, primarily influenced by oversupply and market competition.
However, during July 2024, despite subdued demand from key sectors like automotive, the market was characterized by challenges in the supply chain and increased freight costs due to geopolitical tensions which led to an increase in price trends.
While, the ease in freight charges offset any upward trajectory and aggressive promotional discounts offered by Chinese manufacturers due to intensified competition in the market, putting downward pressure on imported Glass Fiber prices in the USA. These factors created a bearish sentiment, leading to reduced demand and competitive pricing dynamics. The USA, witnessing significant price changes, saw a downward trend, with prices dropping by 11% from the previous quarter. Despite a slight improvement in the automotive industry, overall trends remained negative, reflecting a market struggling to find stability. The quarter ended with a price of USD 1170/MT for E-Glass Fiber CFR New York, underscoring the prevailing downward pricing environment in the region.
APAC
Glass Fiber pricing in the APAC region for Q3 2024 has seen a notable increase, primarily influenced by a variety of factors. The market has experienced a challenging quarter characterized by a significant increase in prices. Despite the slowdown in the downstream automotive sector, the Glass Fiber market in South Korea witnessed a surge during July 2024 which was ascribed to a logistical disruption resulting from the rainy season and floods. Concurrently, Malaysia, a prominent Glass Fiber exporter, has observed an increase in production expenses. The escalation in prices can be attributed to the transfer of these escalated expenses to significant importers within Asia. While, the automotive industry, a key user of Glass Fiber, saw a decline in demand throughout the third quarter which somewhat declined consumer confidence. However, due to consistent logistical issues, purchasers were forced by the state of the market to obtain limited supply at elevated costs which elevated the costs of the product during this timeframe.
Europe
In Q3 2024, the Glass Fiber market in Europe experienced a downturn, with prices decreasing significantly, followed by an uptrend. During July 2024, the supply chain was severely disrupted by the start of the rainy season, which led to bullish sentiment in the Glass Fiber market. Moreover, the maintenance at the North Sea further hampered the supply chain activity. Concurrently, Malaysia, a prominent Glass Fiber exporter, has observed an increase in production expenses. However, the market was influenced by low demand from key sectors like the automotive industry, which faced challenges due to decreased consumer confidence during August 2024. Additionally, high inventory levels and easing freight rates added downward pressure on prices during September 2024. The imbalance between supply and demand exacerbated the decline. Germany, in particular, saw the most significant price changes, reflecting the overall market trend. Compared to the same quarter last year, prices were notably lower. The quarter saw a 13% decrease from the previous quarter, with prices dropping further by 7% in the second half. The quarter ended with Glass Fiber priced at USD 1100/MT of E-Glass Fiber CFR Hamburg in Germany.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has witnessed a significant escalation in Glass Fiber prices across the North American market, driven by a confluence of factors. A primary influence has been the persistent supply chain disruptions, exacerbated by port congestion and high freight charges, which have significantly constrained the availability of Glass Fiber.
While April 2024 showcased a declining trend for Glass Fiber amidst large discounts provided by Asian manufacturers, the overall trend for the second quarter remained bullish. Focusing on the USA, which experienced the most pronounced price shifts, the market dynamics were shaped by a robust rise in demand, particularly from the downstream automotive sector. The sector's strong performance in May, with new vehicle sales surging and aggressive deal-making, amplified the demand for Glass Fiber. This seasonal uptrend, coupled with high freight costs and capacity limitations, has bolstered prices significantly.
Concluding the quarter, the price of E-Glass Fiber CFR New York stood at USD 1220/MT during June 2024, reflecting a consistently bullish sentiment throughout the period. Comparatively, the price of Glass Fiber in the USA has shown a 7% increase from the previous quarter, and an astonishing 26% jump when comparing the first and second halves of the quarter, underscoring the upward trajectory.
APAC
In Q2 2024, the Glass Fiber market in the APAC region experienced a notable upward price trend, largely influenced by several significant factors. Regional trade events and new subsidies for energy-efficient vehicles bolstered demand, enhancing market sentiment. The overall manufacturing sector saw significant growth, further intensifying the demand for Glass Fiber. Meanwhile, the market also faced supply chain disruptions, including port congestion and logistical bottlenecks, which limited the availability of Glass Fiber and contributed to price increases. Although the Asian producers offered significant reductions in April 2024, which resulted in a falling trend for Glass Fiber, the overall trend for the second quarter remained positive. Focusing on South Korea, the country witnessed the most significant price changes within the region. The overall trends indicated a positive pricing environment characterized by increasing prices due to heightened demand from the automotive sector and supply constraints. This trend was further exacerbated by the depreciation of the South Korean Won, which made imports more expensive during June 2024. The price of E-Glass Fiber CFR Busan concluded the quarter at USD 940/MT, underscoring an overall positive sentiment in the Glass Fiber sector for South Korea.
Europe
The Glass Fiber market in Europe experienced a notable upward trajectory in prices during Q2 2024. However, April 2024 witnessed declining prices due to a decline in sales of the downstream construction and automotive sector which reduced the Glass Fiber buying activity, yet the overall market trend was bullish. This quarter was marked by significant supply chain disruptions which exacerbated the already strained market. These disruptions, coupled with elevated freight charges due to port congestion and unseasonal demand for ocean freight from Asia, created a perfect storm, driving prices upwards during May 2024. The European Commission's extension of anti-dumping measures on imports from China and Egypt aimed to protect domestic production but inadvertently contributed to higher prices by limiting supply. Focusing specifically on Germany, which witnessed the most pronounced price changes, the market saw an overall bullish trend. The seasonal uptick in automotive sales further tightened supply, pushing prices higher. Compared to the previous quarter, there was a 4% increase in prices, demonstrating a consistent rise across the board. The latest quarter-ending price for E-Glass Fiber CFR Hamburg in Germany stood at USD 1140/MT, underscoring a robust and positive pricing environment.
For the Quarter Ending March 2024
North America
In Q1 2024, the Glass Fiber pricing dynamics in the North American region experienced a bearish trend, driven by a combination of factors beyond the conventional influences. While the top factors such as low demand from the construction and automotive industries played a significant role, there were other nuanced factors at play.
The influx of inexpensive inventories from Malaysia and Indonesia into the US markets kept supplies ample, leading to price depreciation. The market situation in the USA, where price fluctuations were most pronounced, reflected the overall bearish trend. The demand for Glass Fiber from the automotive sector declined in January as the total sales of new vehicles including both retail and non-retail transactions, were 1,087,900 units. To take advantage of year-end offers and incentives, most customers usually finish their car purchases in December, which lowers the number of sales in January.
This decline has followed the previous market sentiments due to the lack of demand for Glass Fiber from the overseas market. Driving the price decline was a surge of cheaper imports from Malaysia. This influx of competitively priced material has put downward pressure on domestic glass Fiber prices throughout March.
APAC
In Q1 2024, the Glass Fiber pricing dynamics in the APAC region showed a bearish market situation. The surplus in foreign inventory and sluggish progress in construction activities at downstream sites contributed to the downward pressure on prices. Cheaper imports from Asia, supported by a stronger South Korean Won against the USD, further intensified competition and lowered prices. The low demand from the construction and automotive industries added to the bearish sentiment. As per Global Data, based on preliminary wholesale figures released separately by the manufacturers, the combined domestic sales of South Korea's five major automakers decreased by 2% to 102,987 units in January 2024 from 100,751 units in the same month the previous year. During February, this slump was directly linked to a slowdown in the automotive industry, a major consumer of glass Fiber amidst the Spring Festival holiday. Because Malaysian manufacturers and dealers were aggressively decreasing prices and giving discounts to clear away inventory, glass Fiber supplies remained surplus in South Korea. Comparing Q1 2024 to the same quarter last year, there was a significant decrease in prices.
Europe
The European glass fiber market showcased mixed trends during the first quarter of 2024 with prices inclined during January on the back of tight spot flow, while declined in the later half. Supply was diverted from its intended destinations due to disruptions in shipping routes in the Red Sea, which raised freight charges, resulting in an uptrend. Moreover, the Houthi strikes continued in January despite the Operational Prosperity Guardian naval task force which has led to an intensified US response and UK deliberations about striking Houthi forces in Yemen. However, the freight charges from Asia to Europe have declined throughout February after a decrease in disruption levels with the worst of the effects on container traffic rates being over. As the weather improves and demand declines, ocean rates from Asia to North Europe decreased by 15% below their late January peaks. The European market saw a decrease in Glass Fiber demand, a sign of subdued sentiment in the downstream construction and automotive industry amid a broader slowdown in the economy. In the first quarter of 2024, the German economy was probably in recession due to low industrial demand and weak consumer spending.
