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Fluorocarbon elastomers (FKM) over capacity and low operating rates in China

06-13-2018 05:31 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Prismane Consulting

Global FKM demand, by region - 2017

Global FKM demand, by region - 2017

The global demand for fluoroelastomers was estimated to be around 26 kilo tons in 2017, growing between 3-4% since 2010. Fluorocarbon Elastomer (FKM) is the dominant fluoroelastomer accounting for more than 85% of the global fluoroelastomer consumption and it still remains a single largest driver for growth. Other fluoroelastomers include fluorosilicone and perfluoroelastomers. Asia Pacific is the biggest consumer followed by North America and Western Europe. Historically, FKM has been struggling with overcapacity and low operating rates because of slow growth in comparison to other fluoroelastomers.

The shifting of automotive production from Western Europe to other low cost regions in Asia has pushed the regional demand, especially in China. FKM cost is relatively higher than its immediate competitor Ethylene Acrylic Elastomer (AEM) which is major challenge faced by manufacturers. This challenge is overshadowed by superior performance in terms of heat & oil resistance and enhanced service life of the component. Initiatives like promoting hybrid electrical vehicles and turbocharged engines due to strict environmental regulations are expected to drive FKM demand in the automotive sector. FKM is used in applications such as o-rings, gaskets, complex moulding parts, seals & hoses. Major end use industries for FKM include Automotive, Aerospace, Oil & Gas and Industrial amongst others.

For a detailed supply-demand analysis report contact Prismane Consulting at sales@prismaneconsulting.com

Prismane Consulting is a unique global boutique consulting firm with an Indian origin. We present ourselves to the world outside providing management, economic and technical expertise to improve customer engagement, boost operational efficiency, reduce costs and achieve superior business results. Prismane Consulting serves leading businesses in the field of Chemicals, Petrochemicals, Polymers, Materials, Environment and Energy. We have been advising clients on their key strategic issues solving their toughest and most critical business problems.

Prismane Consulting
Office #519, Amanora Chambers, Amanora Park Town,
Hadapsar-Magarpatta Road,
Pune 411028
India

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