Views: 0 Author: Site Editor Publish Time: 2021-07-05 Origin: Site
Increased demand for polyester resin in the automotive and construction industries is accelerating sales. Car manufacturers require high-performance components and are driving an increased need to produce anti-corrosive tanks and fibreglass surface linings coatings.
The Chinese economy emerging first from lockdown has led to an increase in the consumption of raw materials, including glass fibre and polyester resin. This has had a knock-on effect on some suppliers incurring huge price increases in their commodity pricing.
In regards to chopped strand mat, we have noticed that since late 2020 that demand was outstripping capacity and have seen increasing price hikes. There are a number of issues causing this, mainly the reduction in capacity by all the major reinforcement producers following the worldwide Covid pandemic in 2020. Standard supplies were expected to take up to a year to fully recover. However, it would seem that in the UK, as with the rest of Europe, demand has bounced back remarkably strongly.
Unfortunately, early in 2021 one of the two major reinforcement producers, Jushi, had a major issue with their 80 kiloton furnace (Egypt), which has further reduced capacity taken by the European market. Increasing volume demands from US and plant failures in Texas due to excessively cold weather has put further pressure on supplies, driving prices higher.