In Q1 2024, the global price of PTFE (Polytetrafluoroethylene) decreased by approximately 4%, primarily driven by a combination of factors. The drop in prices was largely attributed to a slowdown in demand across key industries such as automotive, electronics, and chemical processing, which traditionally drive PTFE consumption. Additionally, an increase in production capacity from key manufacturers helped alleviate supply constraints, contributing to the price decline. Moreover, the stabilization of raw material costs, such as fluorite and other feedstocks used in PTFE production, provided further pressure on prices to decrease. Despite these challenges, the market remained relatively stable, with some regions showing slower-than-expected recovery in industrial activity. As a result, the overall trend in Q1 2024 reflected a mild decrease in PTFE prices.
In Q2, the price of PTFE remained stable due to the balanced gap between the demand and supply. This stability was primarily attributed to consistent demand from key sectors such as automotive, electronics, and chemical processing, where PTFE is extensively utilized.
In Q3, PTFE prices witnessed a bullish trend driven by increased demand from downstream sectors such as automobiles and electronics, particularly during India’s festive season, which typically boosts sales in these industries. This surge in demand further strengthened PTFE prices, while the domestic supply of the product remained stable. The heightened demand during this period contributed to the growth of the global PTFE market.
Looking ahead to Q4 2024, the PTFE market is anticipated to see a decline in prices following a last quarter of stability. Cooler weather in many regions is expected to soften demand, particularly from the automotive sector. Additionally, the stabilization of freight rates after disruptions caused by the Red Sea crisis and port congestion is likely to reduce cost pressures. Demand for automotive made from PTFE is also expected to decline. These factors are expected to lead to a seasonal adjustment, resulting in a potential price dip.