As the coronavirus pandemic enters its second year, and as the global economy slowly re-opens, the worldwide glass fiber supply chain is facing shortage of some products, caused by shipping delays and a fast-evolving demand environment. As a result, some glass fiber formats are in short supply, affecting the fabrication of composite parts and structures for the marine, recreational vehicles and some consumer markets.
To learn more about reported shortages in the glass fiber supply chain in particular, CW editors checked in with Guckes and spoke to several sources along the glass fiber supply chain, including representatives of several glass fiber suppliers.
Reasons for the shortage reportedly include rising demand in many markets and a supply chain that can’t keep up due to issues related to the pandemic, transportation delays and rising costs, and decreased Chinese exports.
In North America, thanks to the pandemic restricting travel and group recreational activities, consumer demand has seen a sharp increase for products such as boats and recreational vehicles, as well as home products like pools and spas. Many of these products are manufactured with gun rovings.
There has also been increased demand for glass fiber products in the automotive market as automotive manufacturers came back online quickly and sought to refill their stock following the initial pandemic lockdowns during spring 2020. As days of inventory on car lots for some models reached the single-digits, according to data obtained by Gucke
Chinese manufacturers of fiberglass products have reportedly been paying and absorbing most, if not all, of the 25% tariff to export to the U.S. However, as the Chinese economy recovers, domestic demand within China for fiberglass products has increased significantly. This has made the domestic market more valuable to Chinese producers than exporting product to the U.S. In addition, the Chinese yuan has significantly strengthened against the U.S. dollar since May 2020, while at the same time fiberglass manufacturers are experiencing inflation in prices of raw materials, energy, precious metals and transportation. The result, reportedly, is a 20% increase in the U.S. in the price of some glass fiber products from Chinese suppliers.
Post time: Jul-19-2021