The global demand for glass fiber declined by 3.0% in Q3 2022 as compared to Q3 2021. Demand for glass fiber declined due to declining housing starts, softening demand from RV and marine market from a YoY perspective. Another factor for decreased demand is that various governments are raising interest rates in an effort to control the inflation. Glass fiber prices, on an average, increased by 15% in Q3 2022 as compared to Q3 2021 due to post-pandemic consumer demand, ongoing supply chain issues, geopolitical events, and the impact of war between Russia and Ukraine.
In Q4 2022, the global demand for glass fiber is forecast to further decrease by 2.0% as compared to Q4 2021. The demand will decline due to various factors, such as inventory adjustments at the distribution level and cyclical slowdown is expected as the holiday season will start. Glass fiber price is forecast to increase by 9.8% in Q4 2022 as compared to Q4 2021 due to rising freight cost and supply chain issue. The figure below depicts the change in demand and price of glass fiber over the past five quarters. The data also provides forecast for Q4 of 2022 as shown below.
Figure: Changes in the Global Glass Fiber Shipment and Price Trends
In Q3 2022, the glass fiber demand in North America decreased as compared to Q3 2021 due to declining performance from RV, transportation, housing related products, and marine industry. In North America, light vehicle sales declined by 1.0% in Q3 2022 as compared to Q3 2021. The glass fiber demand is further expected to decrease in Q4 2022. Price of glass fiber increased in Q3 2022 as compared to Q3 2021 due to increased fuel price, shipment cost, and raw material prices. However, glass fiber price witnessed decline in Q3 2022 from Q2 2022 and it is expected to soften further. This is also noted that the raw material prices still remain high overall, but the short-term trend is encouraging and prices are expected to remain relatively relaxing in Q4 2022.
In Q3 2022, the European glass fiber market registered a decrease in demand as compared to Q3 2021. The European Union composites sector faced more significant challenges due to the ongoing war in Ukraine. Another main reason for declined glass fiber demand in this region is the decreased demand from end use markets, like automotive, construction, and consumer electronics. In the European region, light vehicle sales declined by 9% in Q3 2022 as compared to Q3 2021. France registered 0.03 million units of privately owned housing starts in Q3 2022, which is a 4.7% decrease as compared to Q3 2021. Price of glass fiber increased in Q3 2022 as compared to Q3 2021, mainly because of increased supply chain disruption and freight cost.
In Q3 2022, the glass fiber demand declined in APAC, and it is expected that the demand will decline further in Q4 2022. The decreased demand is due to the geo-political concerns with regards to China and the ongoing war in Ukraine, which remained significant external factors that could disrupt the supply chain. Another reason for the decline in demand was decreased demand from major end use industries, such as aerospace and electronics. In Q3 2022, the glass fiber price increased as compared to Q3 2021 due to increasing raw material costs and fuel cost.
The price and demand analysis on above is published monthly for various regions. Lucintel analysts collect supply, demand and price data from various suppliers and consumers on a monthly basis and also analyzes news on supply and demand issues, production, and price trends. This allows Lucintel to publish unbiased assessments on price and demand movements to help you make confident business decisions on your negotiation or business issues.
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