Europe POM Prices Continue to Rise in March Amidst Strong Demand Driven by Downstream Market
Europe POM Prices Continue to Rise in March Amidst Strong Demand Driven by Downstream Market

Europe POM Prices Continue to Rise in March Amidst Strong Demand Driven by Downstream Market

  • 14-Mar-2024 3:10 PM
  • Journalist: Sasha Fernandes

The price of Polyoxymethylene (POM) demonstrated a notable upward trajectory in start of March 2024, primarily driven by a resurgence in the downstream automotive sector. This uptick reflects an increased demand for POM in automotive applications, likely spurred by factors such as new vehicle production and aftermarket part manufacturing.

The construction sector saw a decrease in demand for POM during the same period. This decline in demand was primarily due to a lack of new construction projects, which continued to weigh down activity in the sector. Looking ahead, German construction companies remained pessimistic about future activity, citing economic uncertainty and domestic political factors as potential constraints. Several factors contributed to this decline, including changes in construction activity levels, shifts in material preferences, and alterations in project specifications that reduced the use of POM in construction-related applications.

Manufacturers in the European market have raised their quotation prices, driven by strong demand from the automotive sector. In February, German car registrations increased by 1.7%, totalling 217,388 units compared to 213,553 units in January. The first two months of the current year saw a total of 431,000 new cars registered, a 12% increase compared to the previous year, indicating a positive start to the year.

However, the German market for electric cars is facing pressure due to the abrupt end to funding for electric vehicles from private owners in December last year. Despite already weak volumes in the same month last year, new registrations of electric cars (BEV, PHEV, FCEV) fell by 5% in February, totalling 42,070 units. This decline highlights the challenges faced by the electric vehicle market in Germany.

The automotive industry's positive factors are bolstering the POM market in Europe, leading manufacturers to raise their quotation prices. This could be due to increased demand for POM as a result of growth in the automotive sector, which relies on POM for various components like fuel systems, interior trims, and mechanical parts. The rise in quotation prices reflects the market's response to this increased demand and the need to balance supply and demand dynamics. The price of POM in the FOB Hamburg basis increased by 1% compared to the previous week.

It is anticipated that the price of POM in the European region will likely increase. This increase is attributed to the growing demand from the automotive sector, which relies heavily on POM for various components due to its high strength and rigidity. Overall, the contrasting trends in the automotive and construction sectors underscore the nuanced dynamics influencing POM prices, with market conditions in each sector playing a significant role in shaping the pricing landscape for this versatile polymer.

Related News

Slowdown in Downstream Sectors in Europe Impacts POM Demand, Prices Remain Steady
  • 20-Jun-2024 4:26 PM
  • Journalist: Patricia Jose Perez
POM Market in China witnesses Price Hike Amid Tight Supply Conditions
  • 31-May-2024 2:43 PM
  • Journalist: Francis Stokes
China Polyoxymethylene Prices Surge After Holiday Despite Decline in Demand
  • 21-May-2024 2:21 PM
  • Journalist: Bob Duffler
Downstream Demand Sparks POM Price Surge in Europe
  • 15-Apr-2024 2:29 PM
  • Journalist: S. Jayavikraman