Global POM Market Shows Divergent Trends: China & US Slide While Germany Sees Brief Rally
Global POM Market Shows Divergent Trends: China & US Slide While Germany Sees Brief Rally

Global POM Market Shows Divergent Trends: China & US Slide While Germany Sees Brief Rally

  • 29-Apr-2025 11:45 AM
  • Journalist: Alexander Pushkin

During the latter part of April 2025, the global Polyoxymethylene (POM) market experienced divergent price trends with Germany recording modest gains while China and US experienced bearish trend, though a trend towards stabilization was seen towards the end of the month. Regional supply-demand dynamics, macroeconomic conditions, and trade policy developments were major drivers of market action during the period.

POM prices in China continued to be under pressure due to abundant supply and weak demand. Domestic production rates continued to be high, even after Yanzhou Luhua's second-phase unit was shut for maintenance. Although inventories eased at some petrochemical facilities, downstream demand continued to be sluggish, with buyers buying only for immediate requirements. Traders avoided stockpiling, keeping shipments closely in line with spot market conditions. At month's end, however, the rate of price decreases slowed, and the market entered a period of relative stability as players waited for better signals from downstream markets.

Likewise, POM prices were also weak in the United States for much of the second half of April due to the impact of weakening domestic demand and negative global market sentiment. Being a key industrial consumer of POM, the auto sector reduced buying because of inflated inventories and ongoing economic doubts. Despite flat feedstock prices, particularly formaldehyde, subdued factory production levels indicated lingering hesitancy. The current U.S. tariff regime and threat of retaliatory trade measures are some of the outside forces that also suppressed market optimism. However, by late April, the U.S. POM market also stabilized, with prices finding a short-term bottom as buyers held out for re-evaluation.

Germany's POM market, however, posted a modest price increase because of short-term spikes in demand due to geopolitics-related risk factors. Despite firm feedstock prices and domestic availability, precautionary stockpiling put upward pressure on prices.  Buyers rushed purchases in anticipation of possible supply tightness from altered trade patterns and port congestion. With the instant needs for procurement having been covered, trading activity picked up to normal levels, and POM prices settled into a firm trend towards month-end.

In the near future, POM prices in China may continue to be under stress in the coming weeks, as stable domestic output and poor downstream demand would still be driving market conditions. In the US, though macroeconomic stress and tariff concerns will most probably keep the market on the back foot, possible restocking demand from the auto sector might introduce mild price stability. In Germany, precautionary stockpiling demand could subside with the geopolitical landscape stabilizing, resulting in a balanced market with stable POM prices anticipated in the near term.

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