Stable Fluoroelastomer Prices Reflect Balanced Supply and Demand in US Market
- 03-Jun-2024 2:27 PM
- Journalist: Sasha Fernandes
In the US market, the price of Fluoroelastomer has remained stable as of the second half of May. This stability in the Fluoroelastomer price is primarily due to the lack of significant changes in demand and supply dynamics from key downstream sectors, namely the automobile and aerospace industries. Fluoroelastomer suppliers have been effectively managing inventory levels in line with current market demands, preventing any substantial accumulation or destocking of inventories during this week. These factors have played a crucial role in maintaining the steady price of Fluoroelastomer in the US market.
In the US market, the price of Fluoroelastomer MV-30 concluded at 35,500 USD/MT FOB-USGC. In the downstream automobile sector as per the major updates, the U.S. light vehicle sales volume in May 2024 is expected to reach 1.4 million units, marking single digit rise on a month-over-month basis. In the aerospace market, Boeing has reported its third annual progress report focused on improving product safety and working across the industry to reduce safety risks due to current tensions related to safety issues. According to 3M Science's updates, adjusted organic growth performance showed mid-teens increase in electronics, a mid-single-digit increase in automotive and aerospace, a low-single-digit increase in commercial branding and transportation, and advanced materials remained flat, with strong momentum in automotive electrification and inventory normalization in electronics and automotive channels. AGC Inc reported that for the three months ended March 31, 2023, the Chemicals sector achieved sales to external customers amounting to Yen 140,062 million and inter-segment sales of Yen 902 million, bringing the total sales to Yen 140,965 million.
According to Arkema, the start-up of the 1233zd fluorospecialties unit in the United States this summer should gradually ramp up, contributing around Euro 60 to Euro 70 million in EBITDA for the full year. In Q1 2024, sales in the Advanced Materials segment were Euro 878 million, down by 6.3% compared with the first quarter of 2023, with volumes up 1.6%, supported mainly by positive momentum in High Performance Polymers in Asia, notably in the battery, automotive, and sports markets, and solid volumes in Performance Additives. These factors have cumulatively affected the pricing and the demand dynamics of the Fluoroelastomer in the US market.
As per the ChemAnalyst, the price of the Fluoroelastomer in the US market is expected to showcase stable to marginal rise momentum. This anticipation in the Fluoroelastomer price fluctuation is primarily linked to the ongoing muted demand from the Aerospace market which is being supported by the Automobile and the other manufacturing sector. As per the price action, the Fluoroelastomer suppliers are currently managing the inventories levels and are not engaged in bulk accumulation of the inventories which is being expected to be seen in the upcoming Fluoroelastomer price.