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.
For the Quarter Ending December 2023
North America
The North American glass fiber market in the fourth quarter of 2023 witnessed a significant decline as compared to the previous quarter. Firstly, the market experienced high supply levels, resulting in lower prices compared to the previous quarter.
Secondly, demand for glass fiber remained low, despite moderate to high consumption in the domestic automotive and construction sectors. This was primarily due to the availability of cheaper imports from Asia, which drove down prices in the region. Additionally, the decline in manufacturing PMI in the United States further contributed to the bearish market sentiment.
Among the countries in North America, the United States experienced the most significant changes in glass fiber prices. The prices in the country declined despite a healthy environment for the downstream construction sector and a strong performance in the automotive industry. This can be attributed to the high availability of glass fiber and the influx of cheaper imports from Asia.
The trend for glass fiber prices in the United States during the fourth quarter of 2023 was bearish, with a decline of 6.2% compared to the previous month. The latest settled prices of E-Glass Fiber CFR New York in the United States at the quarter ending December 2023 was USD 1070/MT.
APAC
The glass fiber market in the APAC region during the fourth quarter of 2023 drastically declined under the influence of bearish market sentiments. Firstly, the market experienced moderate to high supply levels throughout the quarter, with raw material and finished goods prices remaining lower than in the previous quarter. Secondly, demand for glass fiber was moderate to low, with the automotive sector showing moderate demand while the construction sector experienced a decline. This high availability of glass fiber in the market drove prices down. Additionally, cheaper imports, particularly from Malaysia, contributed to the price decline. In terms of South Korea, the country experienced a significant price change during the quarter, with the price of E-Glass Fiber CFR Busan falling by 8.5% to reach USD 1050/MT during November. This price decrease can be attributed to the impact of cheaper imports and the slowdown in the construction sector. However, the automotive sector maintained stable demand, with sales increasing by approximately 3% in November 2023.
Europe
European glass fiber prices plunged throughout the fourth quarter, primarily driven by a sustained bearish environment in the construction and automotive sectors. Weakened demand for glass fiber across the globe, particularly from key importing nations, set the stage for lower prices. Moreover, competition from cheaper Asian imports further pressured European markets as the high availability of glass fiber in the UK, coupled with the stronger Euro making imported materials cheaper, exacerbated the price drop. This vulnerability was further underscored by a declining manufacturing PMI, indicating broader economic woes in Europe. The UK construction industry, especially the residential sector, witnessed a significant slowdown in November and December. Declining house permits and limited activity in commercial building and civil engineering projects severely curtailed demand for glass fiber. The automotive sector also contributed to the price decline, with lackluster sales and year-end inventory clearance creating additional downward pressure. The quarter-ending price of E-Glass Fiber CFR Immingham in the United Kingdom was USD 1040/MT.
