Bullish Feedstock Trend Sends a Wave of Optimism in Global Polyoxymethylene Prices
- 14-Oct-2022 6:48 PM
- Journalist: Jung Hoon
In the United States, the price of Polyoxymethylene has soared continuously on a weekly basis due to persistent increases in feedstock formaldehyde costs in the domestic market. The moderate demand from the automotive & electronic sectors and the limited availability of the product made these price changes in the USA. The source said the consumer price index was up by 0.4% in September 2022 compared to 0.1% in August 2022. Inflation rates are still comparatively high in the USA due to high volatility in food, gasoline, and energy prices. In the USA, Polyoxymethylene prices inclined by 0.6% during the week ending 07th October 2022.
In Europe, Polyoxymethylene prices have persistently increased due to the hike in natural gas prices. Furthermore, the domestic production cost has remained high amid soaring energy and operating costs, resulting in weak output rates. The impending recession across the European Market has dampened the demand from the downstream automotive and other key driving sectors. According to the data, the European inflation rate increased from 9.1% to 10% in September 2022 compared to the previous month. Already supply chain was disrupted across the region for several reasons, and now UK Liverpool port has started a labor strike for seven days up to 17th October 2022, owing to the make-up for rampaging price inflation. According to the Analyst, the cost of Polyoxymethylene settled by a 1% increment during the week ending 07th October 2022.
At the same time, Polyoxymethylene prices inclined this week in China due to high-cost pressure from the feedstock Formaldehyde. Importing countries such as India have moderate demand for Polyoxymethylene due to the festive season. The abundant availability of the product on the field and the intense competition in the market increased the price of Polyoxymethylene in the Chinese domestic market. As per the Analyst, the cost of Polyoxymethylene hovered around 2.7% inclined this week ending 14th October 2022.
According to ChemAnalyst estimation, Polyoxymethylene prices will likely increase in the upcoming weeks due to the uncertainty in the global market. The operational cost to produce Polyoxymethylene will increase due to global volatility in crude and natural gas prices. The dynamic demand from the downstream industries also contributes to the price changes in the market.