European POM Prices Hold Steady Amid Economic Headwinds and Weak Demand

In the last week of September 2024, Polyoxymethylene (POM) prices in Europe remained stable, mirroring the trend seen throughout the month, despite ongoing economic challenges affecting key sectors such as automotive and various industrial applications. The market reflected a balance between sufficient supply and subdued demand across the region, keeping the POM prices steady. Although feedstock Formaldehyde prices rose, sufficient product availability allowed traders to maintain consistent pricing. As a result, POM prices in Germany held firm at USD 4950/MT for Injection grade, FOB Hamburg, during the week ending September 27, 2024.

The supply of POM in Europe remains sufficient to meet current market demands, as manufacturers and suppliers have effectively maintained the supply chain despite worsening conditions in the German manufacturing sector in September. Low demand has ensured that the market remains well-stocked, which has been a key factor in stabilizing prices and preventing significant fluctuations amid ongoing economic uncertainties. Price stability has also been reinforced by competitive imports for POM, which continue to flow into the European market despite logistical challenges and extended lead times. These imports have helped maintain market competitiveness, preventing domestic POM prices from surging due to potential supply constraints.

The demand for POM in Europe remains weak, largely due to its heavy reliance on the construction and automotive sectors, both of which have been severely affected by recent inflation spikes and broader economic challenges. The European automotive sector faces mounting difficulties. Industry experts note a slight deterioration in Germany's automotive business climate, with weak trading offtakes reflecting ongoing issues such as supply chain disruptions, rising production costs, and dampened consumer demand. Vehicle sales in Germany dropped by about 27% in August, according to the Germany Federal Motor Vehicle Office, with this downward trend persisting into September. As POM is widely used in various automotive components, the sector's struggles have directly impacted demand. Moreover, lackluster demand from overseas markets, particularly the U.S., where the automotive sector also faced challenges, has intensified market dynamics, further suppressing POM demand in Europe.

According to ChemAnalyst, POM prices are anticipated to fluctuate within a narrow range in October 2024, as demand from both domestic and international markets, including Asia and the U.S., is expected to moderate due to need-based procurement ahead of the upcoming festival season. Buyers are likely to focus on fulfilling only essential orders, leading to a more cautious purchasing pattern. Additionally, geopolitical tensions and persistent port congestion are expected to drive up freight rates, further complicating market dynamics and contributing to uncertainty for POM prices. These factors, combined with global supply chain disruptions, are set to play a key role in shaping market conditions and influencing POM price trend in the coming month.