During H1 Dec 2025, the U.S. FKM (Fluoroelastomer) market continued its solid performance on the back of prudent supplier strategies and well-functioning supply and demand fundamentals. Suppliers have maintained steady production levels, focusing on fulfilling their contractual obligations, while the automotive, aerospace, and industrial segments of the economy have not been increasing their demand levels since prior months. The smoothness of logistics, along with relatively predictable international shipping patterns for the FKM products, has provided additional positive stability to the market, contributing to a neutral tone in the FKM market.
In H1 Dec 2025, producers were still managing production plans and inventory levels to maintain availability of FKM by following strict processes with careful forecasting and inventory controls. The manufacturing plants were running at an average capacity utilization, allowing them to produce the right amount of product for both domestic and export customers. Manufacturers concentrated production to support long-term contracts, thereby limiting their exposure to spot/purchase market activity. Manufacturers held inventories at equivalent levels which helped to balance supply and demand in the FKM market and stabilize prices along the FKM supply chain.
On the demand side, U.S. demand for FKM in illustrated the environment surrounding manufacturers. Sustaining normal FKM consumption included continued auto builds and chemical suppliers producing consistently. Competitive pressure pricing and increased costs, resulting from inflation, have urged converters to limit the volume of their purchases. Domestic automotive activity provided a steady foundation for FKM usage. Vehicle sales in the U.S. during November reached 1,274,624 units, marking a 0.2 percent month-on-month increase. This supported ongoing production schedules and steady polymer offtake for sealing and under-the-hood applications. Aerospace demand also remained supportive, with Boeing producing 45 aircraft in November and delivering 44 units, including 32 narrow-body aircraft alongside wide-body and freighter models. These deliveries ensured regular procurement of FKM grades used in seals, gaskets, and fuel-system components.
Export demand has additionally helped to keep the FKM outlook's status stable. Automotive shipments from North America reflect patterns of production among major international automotive manufacturers. New energy vehicle (NEV) wholesale sales in China are now over 1.72 million, with passenger vehicle retail rising to 2.263 Million while NEV sales have reached 1.354 Million retails to date, new energy vehicles supported steady elastomer stocking requirements in China. In Mexico, there were 148,359 light-vehicle sold, keeping overall import market stable. Finally, although Taiwan experienced a slight decrease with only 18,505 registrations of new vehicles, there are no interruptions within normal stock acquisition methods being utilized.
As per ChemAnalyst’s anticipation, the price of FKM will likely continue to be stable during future sessions. This assessment in the FKM price is supported by a balanced outlook in downstream consumption with ongoing optimism for the aerospace industry. Globally, both the semiconductor and automotive industries should continue on an upward trend, as well as suppliers' maintaining inventory levels in check. With all these variables combined, FKM prices should remain within a relatively small and stable range.
