Carbon Fibre Price Trend and Forecast

Carbon Fibre Regional Price Overview

Get the latest insights on price movement and trend analysis of Carbon Fibre in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Carbon Fibre Price Trend for the Q4 of 2024

Asia

The Asian carbon fibre market experienced significant price pressure during Q4'24, with prices showing a downward trend. The weak polyethylene market, a key raw material, helped manufacturers maintain lower production costs. However, reduced demand from key sectors like automotive and wind energy offset these potential savings.
 

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Chinese manufacturers particularly faced challenges due to overcapacity and sluggish domestic demand. Despite this, specialized grades for aerospace applications maintained relatively stable pricing due to consistent demand from the defense sector.

Europe

European carbon fibre prices remained relatively stable throughout Q4'24, though with a slight upward bias. The region faced increased energy costs, which impacted production expenses. The implementation of sustainability regulations and carbon pricing mechanisms influenced manufacturing costs. However, strong demand from the growing wind energy sector and aerospace industry helped maintain price levels. The market also saw increased interest from automotive manufacturers working on electric vehicle projects, though actual procurement remained cautious due to economic uncertainties.

North America

The North American market showed mixed trends during Q4'24. Prices initially increased due to rising production costs and steady demand from aerospace and defense sectors. However, towards the end of the quarter, prices stabilized as manufacturers benefited from relatively lower polyethylene costs and stable energy prices. The automotive sector's demand remained moderate, while construction and industrial applications showed decreased consumption. Local manufacturers focused on specialized grades, which helped maintain better margins compared to standard grades.

Analyst Insight

According to Procurement Resource, the Carbon Fibre prices are likely to face continued pressure in early 2025 due to growing global capacity and uncertain demand conditions. However, increasing adoption in emerging applications like hydrogen storage and urban air mobility could provide support to prices in the medium term.
 

Carbon Fibre Price Trend for the Q3 of 2024

Asia

The carbon fibre market demonstrated significant downward pressure throughout the third quarter of 2024, particularly in the East China region. Market dynamics shifted notably, with supply-demand relationships experiencing substantial changes despite increased production and sales volumes.

The intensified market competition led to substantial price deterioration, evidenced by steep year-on-year declines in unit prices. The domestic market, particularly in East China, faced considerable pressure, resulting in significant price reductions for T700 grade carbon fibre products.

Europe

The European market exhibited similar bearish trends as observed in the Asian region during the quarter. The pricing trajectory maintained downward momentum as manufacturers grappled with market pressures and competitive forces. Companies implemented strategic measures including tiered pricing strategies and market segmentation to maintain competitiveness in the challenging environment. The downstream demand remained subdued, contributing to the overall price pressure in the region.

North America

The North American market aligned with global trends, experiencing pricing pressures amid market challenges. Companies focused on implementing strategic measures to cope with the market downturn. The market saw efforts to stabilize sales through improved delivery mechanisms and customized product solutions for different market segments.

Analyst Insight

According to Procurement Resource, the market for Carbon Fibre is expected to continue facing pricing challenges as companies navigate through competitive pressures and evolving market dynamics, while seeking growth through diversification into emerging applications.
 

Carbon Fibre Price Trend for the First Half of 2024

Asia

Carbon fibres or CFRP (Carbon fibre-reinforced plastics) are high-performance materials made from organic polymers like polyacrylonitrile with long chains of molecules bound together by carbon atoms. They are known for their exceptional strength-to-weight ratio, stiffness, and resistance to fatigue and corrosion. During the first half of the year 2024, carbon fibre prices were found to be fluctuating for the entire six months span.

Prices started slowly at the beginning of the first quarter in 2024 in January, since the New Year holiday season had kept the demands in check. However, as the first quarter progressed further, a staggering rise in crude oil prices pulled the prices for carbon fibres up as well. This incline lasted a few months as the prices again started normalizing in the second quarter of the year. A decline in crude oil prices and stagnation in downstream demands led to price normalization in the second quarter of 2024. Overall, mixed market dynamics were witnessed for carbon fibres during the first half of 2024.

Europe

Carbon fibre prices showcased swift variations in the European markets as well during the first half of the year 2024. A tepid demand curve kept the prices dull initially at the beginning of the first quarter in Europe; however, as the Ukrainian attacks on the Russian oil refineries heated up, the oil prices started inclining in the global market, which provided some cost support to the carbon fibre prices in the European markets. Moving ahead, the second quarter of the year was more consolidated, however. The supply and demand equation got more balanced and a normalization in the crude oil sector helped the prices calm down.

North America

The overall pricing dynamic for carbon fibres was not much different in the American markets as well. After a sluggish start at the beginning of the first quarter owing to the dull downstream demands, the markets saw some upliftment with the help of upstream cost support in the middle of quarter one. However, the inventory stocks and downfall in consumer demands again pivoted the price direction downwards in quarter two. For the majority of the said period, the price remained confined and range bound. Overall, a slightly fluctuating price trajectory was witnessed.

Analyst Insight

According to Procurement Resource, the market projections look optimistic for the Carbon Fibres going forward. The prices are expected to show more improvement in the global markets after a little laid back second quarter.
 

Carbon Fibre Price Trend for the Second Half of 2023

Many market factors affect the cost of carbon fibre, such as demand from wind energy, automobiles, and aerospace. Additionally, the market dynamics of supply-side elements like raw material availability and production capability also exert a significant influence on the market. Carbon fibre prices are further impacted by technological developments that result in more effective manufacturing techniques and the creation of stronger and lighter carbon fibre alternatives.

During the H2 of 2023, China claimed to have achieved mass production capability for ultra-strong carbon fibre, potentially disrupting international monopolies in aerospace and defense materials and cutting down its reliance on expensive imports, thus stabilizing the carbon fibre prices in the region.

Overcoming technological obstacles and US-Japan export restrictions, China has expanded its carbon fibre industry, representing one-third of global production. Changsheng Technology's breakthrough enabled the mass production of high-performance T1000 carbon fibre, which is crucial for advanced military applications.

This development further increased the interest of overseas players in this sector and increased the rate of export volumes. However, concerns arise among US defense officials about China's stealth fighter capabilities, given the strategic importance of carbon fibre.

Beyond defense, carbon fibre demand surged in hydrogen energy and wind power sectors also, though challenges like overcapacity and anti-globalization sentiments persisted throughout the quarter. Despite uncertainties in the timeline and technological research impediments, China aims to leverage this breakthrough for industrial expansion, exemplified by four Chinese firms ranking among the top global carbon fibre producers.

Analyst Insight

According to Procurement Resource, the price of Carbon Fibre is estimated to attain stagnancy in the next quarters, with the Asian countries achieving self-dependency and raising their in-house production of carbon fibre.
 

Carbon Fibre Price Trend for the First Half of 2023

Carbon Fibre is primarily consumed by the manufacturing industries in the aerospace, military, and automotive sectors. So, the prices vary according to the downstream demands posed by these industries.

The Carbon Fibre market experienced mixed price sentiments throughout the said period. The prices had risen for a long time in the previous quarters owing to the high global inflation and the Russia – Ukraine conflict, which also led to an increase in demand for armed equipment.

As the manufacturing sector restarted after a long halt, the supply increased in the market, which directly impacted the Carbon Fibre price trend. Since the freight mediums started normalizing and new supply chains aided trade, Carbon Fibre prices started stabilizing. Eventually, the prices declined due to the poor purchasing potential of buyers given the rising inflation-hiked bank rates showcasing signs of recession, which further dipped the prices southwards. Overall, the Carbon Fibre prices swung on the lower end of the curve during the discussed time frame.

Analyst Insight

According to Procurement Resource, the price trend for Carbon Fibre are expected to continue fluctuating given the feeble demands and highly uncertain market dynamics.
 

Carbon Fiber Price Trend for the Second Half of 2022

Asia

In the Asia- Pacific region, the prices declined due to the imposed restrictions to curb the rising covid cases. The region also witnessed a plunging trend in the demand from the end-user industries and due to this the producers saw a rise in the level of inventories and were thus forced to cut operation costs.

The low demand and reduced offtakes led to the falling trajectory of the prices of carbon fibre. In the fourth quarter, due to the limited availability of feedstock the imports from Russia fell and destocking practices were followed by producers to deal with rising inventories. This kept the prices of carbon fibre on the negative side during the said period.

Europe

In the third quarter, the prices of carbon fibre remained stable as the demand from end-user rubber industries was persistent. The prices, however, suffered from the rising inflation rates and cuts in production costs but no considerable effect was seen.

The initial months of the fourth quarter were favourable for the price trend of carbon fibre as the prices increased significantly. The sudden rise was due to the increase in the cost of natural gas supply and feedstock prices. The prices, however, declined again in the last month attributing to the reduction in the profit margins by the manufacturers to increase the offtakes.

North America

The North American region saw a fall in the prices of carbon fibre as many plants were forced to shut down and domestic inventories went south. The feedstock outrages and low production rates amid dwindling demand led to a declining trajectory in the price trend of the commodity.

In the fourth quarter, the prices were somehow firm as the inflation rates and feedstock prices supported the growing prices. However, disruptions in the supply chain, fall in upstream costs, and reduced offtakes negatively impacted the price trend for carbon fibre.

Analyst Insight

According to Procurement Resource, the prices of Carbon Fiber are likely to decline in the upcoming quarters. The demand from the end-user sector seems to remain weak globally and with rising inflation the prices are expected to continue a downward trajectory.
 

Carbon Fibre Price Trend For the First Half of 2022

Carbon fibres are competitive and cost-effective compared to metals. Due to their excellent mechanical and chemical properties, carbon fibre demand has constantly been increasing globally. The final cost of carbon fibres not only depends on the material cost but also heavily on the manufacturing process.

The price of carbon fibres can vary depending upon the raw material used. For polyacrylonitrile(PAN)-based carbon fibre, the cost of PAN raw silk is 11.11 USD/kg, which accounts for 51% of the production cost, followed by carbonization and pre-oxidation processes which cost around 5.12 USD/kg and 3.40 USD/kg respectively. Based on a gross profit margin of 30%, the price of PAN-based carbon fibre averaged 28 USD/kg in the Chinese domestic market.

In the Chinese market, the price of domestic carbon fibre averaged 180 RMB/MT, while that of T300 grade 12K carbon fibre averaged 180-200 RMB/MT. The domestic T300 grade 24/25K carbon fibre market price averaged 150-155 yuan/kg, while that of the domestic T700 grade 12K carbon fibre market price averaged 260-270 yuan/kg. Hence, the price trend of carbon fibres remained strengthened throughout the first half of the said year.

Procurement Resource provides latest prices of Carbon Fibre. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.