The global demand for SMC decreased by 2.0% in Q3 2022 as compared to Q3 2021. Demand for SMC declined due to underperforming end use industries; housing starts declined due to increased interest rates, RV sales are way down from a year over year basis, and marine also showed softened demand. In Q3 2022, SMC prices increased by 7.4% as compared to Q3 2021 due to the ongoing Russia’s invasion of Ukraine, transportation challenges, and economic concerns increasing fuel expenses and freight cost.
In Q4 2022, the global demand for SMC is forecast to decrease by 1.7%, and SMC price is forecast to increase by 2.6% as compared to Q4 2021. The SMC market is expected to be affected by the holiday season and tightening financial conditions. The figure below depicts the changes in demand and price of SMC over the past five quarters. The data also provides forecast for Q4 of 2022 as shown below.
Figure: Changes in the Global SMC Shipment and Price Trends
The SMC industry witnessed decline during Q3 2022 due to low demand from automotive and construction industry. In North America, light vehicle sales declined by 1.0% in Q3 2022 as compared to Q3 2021. The SMC demand is expected to decline further in Q4 2022 due to high inflation and interest rate. The SMC price increased in Q3 2022 as compared to Q3 2021 due to the high shipping cost and supply chain issue.
In Q3 2022, the European SMC market witnessed a slowdown as compared to Q3 2021 due to decreased demand from automotive and construction industries. Germany registered 0.03 million units of privately owned housing starts in Q3 2022, which is a 5.3% decrease as compared to Q3 2021. In Q4 2022, SMC demand is expected to decrease due to low demand across most industries, such as home appliances, electrical, and others. SMC price is expected to rise in Q4 2022 due to an increase in raw material prices.
In Q3 2022, the demand for SMC declined, influenced by decreased demand in various end use industries, such as electrical and home appliances. SMC demand will be down in Q4 2022 due to declining demand from end use markets.
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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