European Polyoxymethylene Market Stabilized in January with Low Trading Activities
- 02-Feb-2023 2:03 PM
- Journalist: Robert Hume
In January 2023, the price of Polyoxymethylene remained stable due to weak demand from downstream industries like the automotive and construction sectors. Europe's Polyoxymethylene demand is low, despite the automotive industry placing active orders and supplying materials to the market. The high inventory pressure from Asian imports further stabilized the price of the Polyoxymethylene market in the Eurozone.
The worst-case scenario of the extensive amount of energy shortages and disruptions in industrial activities is likely to be evaded in the region due to normal winter weather, further increased LNG supplies, and successfully reduced energy demand across the Eurozone. However, consumers and enterprises are dealing with promptly rising prices, high-interest rates, and overhead skepticism, and many European countries continue to face the menace of an economic downturn this year.
Inflation is expected to ease slowly due to falling energy prices and weakening demand, but it is likely to remain well above the targets set by central banks shortly. If inflationary pressures are reduced in the region, the European Central Bank and other regional monetary authorities will be able to slow the rate of interest increases and stop them. The price of natural gas in Germany slipped to Euro 54.81/Mw-hr on an Ex-Hamburg basis during the week ending January 27, 2023.
The ChemAnalyst found that during the week ending January 27, 2023, the cost of Polyoxymethylene injection grade on a FOB Hamburg basis hovered around USD 3990/MT.
According to the Analyst, the cost of Polyoxymethylene is expected to decline in Europe until Q1 2023 due to threatening of recession and moderate inflation rates. Limited demand will anticipate from the Polyoxymethylene market due to Asian imports cater the demand across Europe. In the construction sector, such recovery tendencies are not yet recognizable in Europe. Lower energy costs and weak downstream markets are likely to lower Polyoxymethylene prices in Europe.