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At the End of December 2022, Global Polyoxymethylene Prices Dive Down Amidst Weak Downstream Demand

At the End of December 2022, Global Polyoxymethylene Prices Dive Down Amidst Weak Downstream Demand

At the End of December 2022, Global Polyoxymethylene Prices Dive Down Amidst Weak Downstream Demand

  • 29-Dec-2022 11:18 AM
  • Journalist: Robert Hume

In December 2022, the global market's downward trend in Polyoxymethylene (POM) was supported by lower feedstock prices and weak downstream demand. POM market expansion has been hampered by inflation, COVID-19 cases rising in China, and restrictive monetary policies.

POM prices in China continued to fall into the last week of the year due to the weak demand from the downstream Automotive, Electrical&Electronics sectors. According to participant reports, the market's buying sentiment has been rigid due to low consumption rates and soft inquiries from the domestic and overseas markets. Furthermore, feedstock Formaldehyde prices have been falling and stabilized in the past week of December 2022, putting POM under constant cost pressure. The imported product is additionally plentiful on the lookout and lowers the expense of POM in the Chinese market. Prices for POM FOB Shanghai were estimated at USD 3245/MT on December 23, 2022.

Consumer confidence was lowered as the holiday season approached because European market participants reported fewer inquiries from downstream Automotive, Electrical&Electronics sectors. In addition, the competition from cheap imports from Asian nations affects the price of POM. In Germany, the threat of a recession is less severe than anticipated during Quarter 4, according to reports from some businesses. In addition, the abundance of readily available products contributed to a further decline in POM's price on the European market. In conclusion, the cost of POM in Germany reached USD 4230/MT the previous week on a FOB Hamburg basis.

At the same time, the U.S. manufacturing Purchasing Manager's Index (PMI) decreased from 47.7 points in November 2022 to 46.2 points in December 2022, indicating a decrease in manufacturing and industrial activity and contributing to a decline in market consumer sentiment over the past few weeks. This holiday season also played a vital role in the weak demand from downstream industries. In addition, domestic POM prices have decreased further due to bleak demand from end users and ample material availability. As a result, prices for POM on a FOB Pittsburgh basis were set at USD 4152/MT on December 23, 2022.

The ChemAnalyst asserts that POM's global market price will rise in January 2023. The feedstock Formaldehyde's price is expected to grow simultaneously, and the Automotive, Electrical&Electronics, and Construction industries will all see an increase in global demand for the product. As a result, it anticipates an increase in the price of POM.

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