The global demand for glass fiber increased by 3.6% in Q2 2021 from Q1 2021, while it grew significantly by 42%, when compared to Q2 2020. Glass fiber prices, on an average, increased about 22.9% in Q2 2021 when compared to Q1 2021. Price increase is due to gap in demand and supply. Demand of glass fiber has bounced back strongly but major suppliers are not adding new capacities in 2021. The second quarter result was positively influenced by a stronger than expected increase in demand from various end use industries. The figure below depicts the change in demand and the price of glass fiber in the past five quarters.
Figure 1: Global Quarterly Glass Fiber Shipment and Price Trends
The North American glass fiber market experienced increase in demand in Q2 2021 from Q1 2021 with the increase in consumption from various end use industries including, automotive, marine, and electronics. Raw material prices continued to increase in the Q2 2021 started from the third quarter 2020 from their lowest point in April 2020. The price of glass fiber increased by 23.2% in Q2 2021, when compared to Q1 2021. Increasing demands and plant failures in first quarter already created a mismatch in supply and demand of glass fiber creating price hike and this continued through Q2 2021.
In Q2 2021, the European glass fiber market registered increase in demand from primary markets like automotive, marine, and consumer electronics. Price of glass fiber also increased in Q2 2021, when compared to Q1 2021, this increase is basically due to supply chain disruption creating the scenario of tight supply. Jushi one of the major reinforcement producer had a major issue with their 80 kiloton furnace (Egypt), which resulted in reduced capacity thus taking toll on supply of glass fiber in European market.
In Q2 2021, demand for glass fiber started moving upward due to recovery of China's local market; especially the automotive and consumer electronics have caused a rebound of demand for glass fiber. Strong demand from various industries and shortage in glass fiber supply created a gap resulting in glass fiber price jump in Q2 2021. With recovery of end use markets the glass fiber producers struggled to match the pace of demand as it takes time to ramp up production once it is down; this resulted in shortage of supply in the market. Delayed shipping and high freight cost even made the situation worse.Enable GingerCannot connect to Ginger Check your internet connection
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