Polyoxymethylene Market Buoyant With Impressive Gains for Traders in Europe
- 27-May-2022 3:07 PM
- Journalist: Francis Stokes
Polyoxymethylene prices are surging day by day in Europe, with Germany projecting its upstream feedstock Formaldehyde market according to the need of today's urban world in a vast field ranging from construction and household appliances to automotive parts.
Europe's energy challenges are colossal and put into stark reassurance by the reaction to Russia's war in Ukraine. The weakening of the ties on natural gas and crude oil which is connected to EU and non-EU nations with Russia has an impact on other downstream markets. Europe is heavily reliant on Russian Natural gas and Crude oil and now it is expose to disruptions in supply. These interruptions in supplies caused by the physical attacks or sanctions in response to them are sending shockwaves across the global economy of Europe, lifting the cost of living, impacting industrial and agricultural production, and potentially leading to social unrest. Gas and electricity are essential elements in the manufacturing costs of many chemicals. Rising gas and feedstock prices in Europe have caused big hikes in contract and spot prices.
Europe, being the major exporter of Formaldehyde is now at a competitive disadvantage to other regions, as some customers are seeking Asian countries as the new source of lower-priced supply. However, demand for advanced technologies is always high, particularly in developed countries across Europe, driving up polyoxymethylene prices.
The POM market is characterized by rising feedstock/manufacturing costs, including fluctuating transportation, logistics, energy, raw material costs, and solid demand for polyacetal products in the German region. These all factors lead to lower the inventories with the suppliers and gain from the Polyoxymethylene sector. POM's almost 100% recyclable characteristic is the most preferred for intensive uses in the Electrical and Electronic industry, thus making it preferable among consumers.
As per Chem Analyst, Polyoxymethylene is expected to broaden and expand in the European market with increasing demand from the consumers in the downstream sectors. The assessment of the global Polyoxymethylene (Pom) Industry market shows that it will unlock many untapped opportunities in regional and domestic markets.