The global demand for carbon fiber increased by 5.4% in Q4 2021 as compared to Q3 2021. Demand for carbon fiber was driven by growth in wind energy installation activities, increasing demand from automotive industry, recovery on aircraft deliveries, and increasing demand from sporting goods manufacturers during Q4 2021. Airbus and Boeing aircraft deliveries increased by 35% in Q4 2021 as compared Q3 2021 level. Carbon fiber prices increased by about ~7.7% in Q4 2021 as compared to Q3 2021; price increase is mainly driven by global supply chain disruption and increased price of acrylonitrile.
In Q1 2022, the global demand for carbon fiber is forecasted to increase by 6.2% from Q4 2021; this increase will be driven by increasing demand from sporting goods, wind, and industrial sector etc. Carbon fiber price is forecasted to increase by 7.5% in Q1 2022. The figure below depicts the change in demand and the price of carbon fiber over the past five quarters and one forecast quarter.
Source: Lucintel
Figure: Global Quarterly Carbon Fiber Shipment and Price Trends
North America
In Q4 2021, the carbon fiber demand in North America increased from Q3 2021 and the demand is expected to increase in Q1 2022 as well. The growth is due to increased usage of carbon fiber in wind, automotive applications, and growth in aircraft deliveries. The primary concern for the composites industry right now is managing the supply chain to access enough raw materials and other critical logistics to capitalize on the immediate demand.
Europe
In Q4 2021, demand for carbon fiber improved in the European market as compared to Q3 2021 and this improvement is expected to be maintained in first quarter of 2022. European light vehicle sales reached pre-COVID levels and grew by 18% in Q4 2021 from Q3 2021. However, aircraft deliveries are also growing at a base level as European commercial aircraft deliveries increased by ~35% in Q4 2021 compared to Q3 2021. In Q4 2021, demand for carbon fiber also increased in the European market, due to increase in aircraft builds rates.
APAC
In Q4 2021, demand for carbon fiber increased from Q3 2021 as consumption of carbon fiber grew in end use markets like aerospace, automotive, wind, and sporting goods. This demand growth is expected to continue in Q1 2022 also with recovery in economic activity and rebound in consumption. Carbon fiber price in Asia increased in Q4 2021 due to supply shortages, global plant issues, and logistic issues.
