In July 2025, Polyoxymethylene (POM) prices in China and Germany remained soft due to oversupply and weak demand. China saw competitive pricing amid high stocks, while Germany faced stable but sluggish consumption. No major price gains are expected soon.
POM China and German markets posted soft to stable prices in July 2025, influenced by a shared theme of oversupply offsetting weak downstream demand. Regional market drivers differed yet both economies grappled with lingering inventory overhang and weak end-user demand, precluding any significant price gain.
In China, POM prices remained at the bottom end as firm operating rates were balanced by soft domestic and export demand. A moderate month-on-month increase in passenger vehicle sales was not able to boost POM consumption of engineering plastics, as converters gave priority to available stock rather than new purchases. Home appliances and electronics continued under seasonal and consumer-expenditure pressures, while export shipments to India, Southeast Asia, and Brazil remained weak under high inventories and local market pressures.
Southern China weather-related transport disruptions had little effect on availability, as feedstock prices were moving lower, and production was mostly unaffected. This left the POM market oversupplied, encouraging producers to move to competitive pricing to stem additional stock build-up.
Germany's POM prices remained largely firm, underpinned by stable production from major producers like Celanese and BASF Ludwigshafen, consistent energy prices, and uninterrupted feedstock availability. Yet weak domestic end-use and limited export relief owing to port delays and manpower shortages-maintained POM inventories at high levels.
Automotive demand, despite new passenger car registrations during July, remained subdued as OEM summer shutdowns and Tier-1 supplier caution limited resin intake. Electronics and appliances provided little offset, with soft retail sentiment and subdued discretionary spend flowing into weaker converter utilisation. Slight output curtailments were not enough to reverse stock build, and by the end of July, the interplay of consistent supply and soft offtake sent sentiment to a gentle price dip.
Looking ahead, both China and Germany are likely to encounter sustained market softness to August unless a more robust downstream recovery emerges. Restocking following the seasonal dip and enhanced export shipments in China can provide some support to POM prices, although weakness in feedstocks and conservative converter purchasing can limit gains. Germany's hopes rest with resumption of post-summer automobile production and clearance of inventories but cost-driven price support is not expected for POM considering weak raw material trends.
