European Polyoxymethylene Prices Showcase a Stable Trend Due to Sufficient Supply
- 23-Nov-2022 12:40 PM
- Journalist: Motoki Sasaki
Polyoxymethylene (POM) prices in Europe have become stable after a period of volatility due to a sufficient supply from Asia. POM is a versatile plastic that is used in various applications, including food packaging, medical devices, and electrical components. POM prices' stability will help to keep costs down for businesses and consumers who depend on these products.
The price of POM has been stable during the week ending 18th November 2022 in the European market. The lower feedstock Formaldehyde price in the region negatively impacted the downstream derivative industries, including POM.
The cheap imports competitions from the Asia region further impacts the price of POM. The situation is made worse by falling energy costs and low downstream demand. European productions keep on working with diminished yield. While the construction sector was weak in the Eurozone and the automotive sectors showed slight improvement. The negotiation prices were lower than the previous month, and in terms of price changes, there are no significant differences between eastern and western Europe.
With the continuous Supply from the Asian nations, the price of POM is declining in the European region and is likely to lead to minor concessions by the producers. The sufficient availability of the product in the region further supports the price of POM in the European market. In terms of demand, the demand was weak in downstream construction sectors but slightly improved in the Automotive sectors in the European market. Consumer sentiment still has a negative trend about their country's economy going into the downturn.
As per the ChemAnalyst, the cost of POM reached USD 4290/MT on a FOB Hamburg basis during the week ending 18th November 2022.
According to ChemAnalyst, the stability of POM prices is good news for the industry and consumers and might continue to fall in the coming weeks as a result of the cheap imports from Asian nations.