- Carbon fibre markets stayed firm during Q1’26 as feedstock, energy, and freight pressures outweighed mixed downstream demand across major regions.
- Feedstock pressure increased sharply as acrylonitrile, a key PAN-based carbon fibre precursor, rose 60.09% in March, raising conversion and precursor costs.
- Downstream demand was mixed, with aerospace and industrial use supporting consumption, while automotive lightweighting demand softened due to weaker vehicle registrations in Europe.
Asia
Carbon fibre prices in Asia remained firm during Q1’26, mainly due to higher feedstock costs and petrochemical supply-chain disruption. As the quarter progressed, the key feedstock became costlier, raising conversion pressure for carbon fibre producers. In the latter part of the quarter, the Iran war and Strait of Hormuz closure disrupted petrochemical flows and freight movement, adding to logistics and energy costs for Asian manufacturers. Demand from wind energy, pressure vessels, sporting goods, and industrial composites stayed steady, but buyers were cautious because of higher raw material costs.
Europe
European carbon fibre markets were stable to firm. Early in the quarter, the prices remained stable as the downstream industries reopened after the New Year Holidays. Meanwhile, Toray Carbon Fibers opened a new facility in France, increasing annual capacity from 5,000 tonnes to 6,000 tonnes. However, in the latter part of the quarter, energy, freight, and feedstock costs kept the market supported. Downstream automotive demand was weaker, with new EU car registrations falling 3.9% year-on-year in January. However, aerospace, defense, and high-performance industrial applications supported consumption, preventing a major decline.
North America
North American carbon fibre prices remained firm, but demand signals were mixed. Aerospace and defense applications supported high-performance fibre offtake, while broader durable goods demand weakened as U.S. manufactured durable goods orders fell 1.4% in February. Higher freight rates and Middle East-related supply-chain disruptions increased delivered costs for imported precursor and composite materials.