For the Quarter Ending December 2022
North America
The cost of Polyoxymethylene witnessed an increased price trend for the first two months of Q4, but it declined in the final month of 2022. The inquiries from the international market were high, and the manufacturers raised the cost of the product. Additionally, the approaching holiday season further exacerbated the weak demand dynamics for POM and other petrochemical commodities. In addition, domestic POM prices have decreased further due to bearish demand from end users and ample material availability in Q4. The cost of Polyoxymethylene hovered around USD 4189/MT on a FOB Pittsburgh basis during December 2022.
APAC
In China, in the first two months of Q4, Polyoxymethylene prices saw an increased trend, but prices decreased in the last month of Q4 2022. Despite the low demand from the downstream automotive and construction sectors, the cost of Polyoxymethylene increased due to tight supply from producers. At the same time, health incidents affected material shipments in the Chinese domestic market. The market saw a wait-and-see attitude due to the supply of high-priced goods, and overall demand was just the basis of need. In December, Polyoxymethylene saw declined price trend due to a rise in COVID cases and reduced orders from end-use industries due to year-end, and they were waiting for new procurement.
Europe
Due to weak demand from the automotive and construction industries, Polyoxymethylene's cost decreased in the fourth quarter of 2022. The steady supply from East Asia at low prices further declined the cost of the product. Several European nations increased gas storage levels, and milder weather conditions contributed to the decrease in natural gas prices. Another factor that contributed to the decline in costs was the growing use of wind power to generate electricity in place of natural gas. The minimum orders from the importing countries due to low demand led to stockpiling in the market, further declining the price of Polyoxymethylene. On a FOB Hamburg basis, the cost of Polyoxymethylene reached USD 4240/MT in December 2022.
For the Quarter Ending September 2022
North America
In the North American region, at the beginning of the third Quarter, the price of Polyoxymethylene fell owing to the market's weak cost pressure from the feedstock formaldehyde. Weak consumer buying trends and surplus product availability curbed the POM price movement in this region. However, the price rose at the end of the third Quarter due to the surge in natural gas prices. The ports were congested in several US terminals, ocean carriers canceled their sailings, and higher container delivery volume pushed up the prices. A tight supply of products in the market increased the price of Polyoxymethylene. As a ripple effect, the cost of Polyoxymethylene settled at USD 3721/MT on a CFR US Gulf during the third Quarter.
Asia Pacific
In India, the price of Polyoxymethylene rose at the beginning of the third Quarter due to high demand from the downstream automotive industries. At the end of the third Quarter, the domestic traders had ample product in the Indian domestic market, influenced by the smooth flow of cargoes from exporting countries like China. At the same time, in China, the price declined at the beginning of the third Quarter due to weak demand from the downstream industries and rose slightly in the last month of the third Quarter. There was intense competition in the market, and the manufacturers and midstream customers preferred to reduce the shipment price. The cost of Polyoxymethylene settled at USD 3237/MT on a FOB Shanghai basis during the third Quarter ended.
Europe
At the beginning of the third Quarter of 2022, the cost of Polyoxymethylene saw a declining trend in the European region due to the feedstock formaldehyde price decreasing in the market. The inventories from the large factories were acceptable, and ample product availability in the market. In September, the price of Polyoxymethylene rose in the European market; the operating cost skyrocketed due to high natural gas prices in the region. Russia stopped the natural gas supply from Nord Stream 1 pipeline at the beginning of September 2022. Several German ports were congested, and the delivery of goods to their destination got delayed. The demand from the downstream industries and limited product availability made a positive regional price change. The cumulative cost of Polyoxymethylene was recorded at USD 4215/MT on a FOB Hamburg basis during the third Quarter ended.
For the Quarter Ending June 2022
North America
The North American region saw an inclination in the prices of Polyoxymethylene during Q2 of 2022, with costs ranging at USD 3,793/ton Polyoxymethylene Injection Grade CFR Manzanillo with a quarterly escalation of 1.4% in Mexico. Surging product use in the automotive and house appliance sectors supported the upward market. This caused lower inventories and fewer products to be stockpiled with traders and suppliers in the regional market. Escalating prices of upstream feedstock Formaldehyde due to the fluctuations in the global petrochemicals market supported the cost pressure. Due to the ongoing war between Russia and Ukraine, soaring freight charges in the region supported the upward cost pressure.
Asia
The prices of Polyoxymethylene fell in the Indian market during the second quarter of 2022, with prices observed to be hovering around INR 130575.00/ton Polyoxymethylene Injection Grade FOB JNPT with a quarterly declination of 0.5%, as recorded by Chem Analyst pricing team data. At the same time, it surged in the Chinese region, with prices hovering around USD 3,431/ton Polyoxymethylene Injection Grade FOB-Shanghai during June and a quarterly escalation of 1.2%. Thus, the Asian market kept a varying sentiment of Polyoxymethylene prices in the regional market. Downstream demand was weak, and sources showed resistance to high costs.
Europe
Polyoxymethylene prices were observed to be surging in the European region during Q2, 2022, with costs ranging at USD 3,816/ton Polyoxymethylene Injection Grade FOB-Hamburg and a quarterly escalation of 3.8%, as per recorded by Chem Analyst pricing team data. The on-site supply was slightly tight, and the load on the downstream market was surging, putting a cost on pressure on the product. Supply chain values were disrupted due to the ongoing war between Russia and Ukraine, and logistical constraints caused a shortage of shipments in the European Union. This also caused a surging of global freight charges.
For the quarter ending March 2022
North America
Prices of Polyoxymethylene fluctuated throughout Q1 in the North American market. The prices decreased for the first two months but eventually bounced back after mid-quarter due to the material shortage and increased crude oil values in the Asian region. The values increased towards the end of the quarter in North America as the prices remained high in the exporting Asian countries like China. However, prices of feedstock Formaldehyde and Ethylene Glycol decreased in the North American region. The demand from the automotive sector increased towards the end of Q1 but remained firm in the consumer electronics and injection moulding industries.
Asia Pacific
Prices of Polyoxymethylene remained stagnant during the first two months and rose in March in the Asian region. Upstream formaldehyde prices decreased in January, which shifted in February and increased till the end of the quarter in the Asian market. The disrupted supply chain impacted the supply of feedstock Formaldehyde to POM manufacturing units which led to a low output of the product in Asia. Upward crawl in crude oil values during March increased the production costs of POM after second half of the quarter, and prices remained strong till the end of Q1. However, the demand for POM from the importing European countries remained consistent during Q1 2022.
Europe
Prices of POM fluctuated throughout the first quarter of 2022 in the European region. The values dropped during the first half of Q1 due to decreased prices of POM in exporting Asian countries. Prices increased during the second half of the quarter because of limited supplies from Asian countries due to war in the East – European region and increased values of crude oil and upstream formaldehyde. On the demand front, offtakes from the downstream automotive sector remained strong throughout the quarter. The estimated prices of POM were USD 3210 per tonne by the end of the quarter in the European market.
For the Quarter Ending December 2021
North America
The market of Polyoxymethylene (POM) in North America was highly fragmented. In October, market was stable emerging with a constant pace, leading to continual growth. The market kept on escalating till the closure of the November, because of the uttermost usage of plastics & other resins in making medical and safety kits. This quarter 4 of 2021, ends with more rapid advancement in medical field causing remarkable growth in market for POM. The demand of POM was quite high due to the shortage in supply, inadequate logistics services & predominantly due to weather conditions at some places coupled with winter holidays in the region.
Asia
POM prices remained low, and this might have been a factor of affecting further downside. Another reason for these hindrance to the downside that appears is less pressure from China. Meanwhile, from Asian imports, some market participants noticed slightly less competition. Production and trade of POM is active across whole Asia region. Due to high demand in production of household products, there always remains a sensitivity in consumer demand from downstream markets. Hindrance in overall Asian market was observed due to stringent production cuts due to dual energy policy in China amid coal shortage in the country, which further exacerbated by the preparation for winter Olympics. Meanwhile demand supply fundamentals for the product remained stable across Indian market bolstered by festivities going on the country.
Europe
In October, POM supply was quite inadequate & because of the low import and logistic issues, the buyers failed to meet requisite demand. This shortage promoted producers to encompass at the big cost. The areas including construction, furniture, consumer goods and appliances was slowly supporting this demand, but this pandemic had given a prolific pace to this demand. In Europe, major factor which is continuing this short supply is incompetency in logistics and high transportation costs, resulting in lower import of POM. Facing tremendous difficulties by buyers forced them to rely over traders and distributors, compensating demand with high prices. The market of POM was encouraged to feel pressure from logistics, high costs, good demand and low supply.
For the Quarter Ending September 2021
North America
The overall market of Polyoxymethylene (POM) showcased an upward trajectory in quarter 3 of 2021 across the North American region. Engineering resins prices continued to find support on the back of high costs, short supply, and strong demand in Q3 2021. The occurrence of Hurricane Ida resulted in the shutdown of several plants which caused disruptions in the production of POM across the region. Drastic increase in the raw material and logistics costs remained the key factors escalating the price of POM resins in North America.
Asia Pacific
The prices of Polyoxymethylene (POM) rose effectively in the Asia Pacific region during the 3rd quarter of 2021 backed by the increased feedstock prices amid tight supply activities. POM futures bounced back in Q3 as local players reported expanded margins on the back of the recovering fundamentals. High raw material pricing was backed by the strong demand from Methanol-to-olefin (MTO) sectors as several Asian plants resumed operations and ramped up production after plant outages in the previous quarter. As Methanol is largely produced by the coal route in China, consistent hikes in coal prices since the beginning of Q3 has also levied an upward pressure upon its fundamentals in the regional market. Market players expected margin improvement to continue in the next quarter driven by growth and better buying sentiments.
Europe
In the European region, Polyoxymethylene prices remained firm during Q3 backed by continuous increases in key raw material prices and strong demand for polyacetals. Manufacturer’s efforts to streamline the production costs and transfer the recent cost increases to end-users resulted in the price increase of POM across the region. Demand from the automotive and medical sector remained firm in this quarter as well.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies of Polyoxymethylene (POM) in the North American region remained balanced, owing to the improvement in industrial activities. Demand remained firm as the region observed a seasonal hike in offtakes from various sectors. The efforts to replenish the inventories level was strengthened ahead of the upcoming hurricane season. As a ripple effect of the surged demand, prices observed a significant improvement with FOB Pittsburgh discussions in May reaching USD 3160 per tonne.
Asia Pacific
In the second quarter of 2021, supply in the Northeast Asian region remained tight owing to the production cut in several major plants, amidst the worsened Covid impact in the Southeast Asian region. The condition further restricted the offtakes as buyers were reluctant to purchase in bulk, due to the hovering uncertainties in the first half of the quarter. As a ripple effect of the curtailed production margins, prices remained influenced throughout the second quarter with FOB Shanghai discussions in May settling at USD 2185 per tonne.
Europe
The supply tightness in the European persisted throughout the first half of the second quarter of 2021 but was later balanced, owing to the improved availability of upstream. Moreover, some easiness was witnessed due to the improvement in the imported volumes from the overseas market. Suez Canal blockage delayed the Asian and Middle Eastern cargoes during the start of the second quarter. Demand of POM remained consistent from the automotive and medical sector, despite the chipsets shortage and low production rates of automobiles the European region.
For the Quarter Ending March 2021
North America
The North American Polyoxymethylene (POM) market remained extremely tight during the first quarter, as the region faced several plant shutdowns as a repercussion of the freezing weather conditions in the USA Gulf region. The temporary calamity led to severe shortage of the key feedstock Methanol in the region. Exports to other regions were severely impacted as the local supply-demand gap widened in the Q1 2021. Demand declined steeply as the automotive production sector was severely hampered amid the winter storm. Extending gains from the raw material rates and global supply shortage, the prices of DURACON grade of POM gained by +USD 300 per ton.
Asia-Pacific (APAC)
Supplies in the region remained balance during the first quarter of 2021, due to the export hindrances in several Northeast countries which were counterbalance by the supplies from countries like China. Several plant turnarounds in Malaysia in duration of February and early March, exerted tremendous pressure on the supplies. However, normal production rate in Chinese plants balanced out the situation. Demand segment strengthened during the first quarter due to better offtakes from the recovering automotive sector sales, followed by surged imports to the western regions.
Europe
Supplies remained balanced to tight in the first quarter of 2021, in European region. However, the hindrance in supply chain of the key feedstock Methanol due to the transportation lag in Amsterdam-Rotterdam-Antwerp route in European region curtained the local operations. Demand surged as the offtakes improved from the downstream automotive and pharmaceutical industry, buyers were observed replenishing their inventories due to strengthened demand amid uncertain market conditions.
For the Quarter Ending December 2020
North America
Hampered by the new strain of corona virus, the North American markets again took a twist as the sales of downstream electrical and electronic items especially smart phones saw a decline of 6% in fourth quarter of 2020. In response, the demand of Polyoxymethylene did not witness an increase as expected even after the announcement of corona vaccine roll out. Although the demand for Polyoxymethylene remained stagnant, its prices showcased marginal fluctuation due to volatile shipping charges in the final quarter.
Asia
The demand for Polyoxymethylene has witnessed an appreciable surge moving from Q3 to Q4 of 2020 due to the significant revival in market fundamental of downstream industries like construction industry, pharma industry and trading companies indicating a remarkable economic revival in the Asian markets. Although the demand was deemed rich during October and November, but it observed slight increment moving into December due to the unprecedented increment in shipping charges which caused the traders to pay high amount during the exchange. This abrupt freight surge ultimately increased the demand for its other available alternatives in the regional area.
Europe
Even after the fears of new Coronavirus strain following the partial lockdown in several parts of the region, the demand for Polyoxymethylene remained stable-to-firm range due to restocking activities of polyoxymethylene by buyers to combat any damage to consumer sentiments amidst its ample demand. To compensate for the regional shortage, there were fewer imports from the Asian region too. With the demand being steady, the prices of Polyoxymethylene witnessed much fluctuation during the fourth quarter of 2020.
