In November 2024, the Polyoxymethylene (POM) market faced declining demand across European and Asian regions due to subdued market sentiment and adequate inventory levels. The automotive sector, a key consumer of POM, grappled with challenges such as slow electric vehicle (EV) adoption, high production costs, and intensified competition from Chinese manufacturers, leading to weakened demand and price drops. Other sectors, including electronics, consumer goods, and industrial machinery, showed moderate to low activity, further straining the market. In Europe, geopolitical tensions and sluggish economic growth exacerbated the downturn, while year-end destocking compounded the oversupply issue. Similarly, Asian markets reflected similar challenges, with geopolitical uncertainties dampening buyer confidence. 

The European POM market faced significant challenges, with Injection-grade POM FOB Hamburg (Germany) prices dropping 14.6% to USD 4140/MT by November 29, 2024. The decline stemmed from weak demand in key sectors like automotive and electronics, coupled with abundant supplies and subdued market sentiment. Year-end destocking further pressured prices, as converters maintained lean inventories in anticipation of December shutdowns.  The automotive sector, a major POM consumer, struggled with high production costs, competition from Chinese manufacturers, and a slower-than-expected transition to electric vehicles. Additionally, plant closures and layoffs by automotive companies highlighted the sector's difficulties. Broader economic challenges, including low real household incomes and high inflation, constrained consumer spending, further dampening demand.  Despite increased freight costs, ample regional inventories limited their impact on prices.

Similarly, the Asian POM market followed a downward price trajectory, primarily influenced by weak demand from the automotive sector. Despite rising freight rates ahead of the Chinese New Year driven by increased demand and reduced shipping capacity due to extended blank sailings the subdued market sentiment persisted.  Logistical constraints, including tightened capacity on Asia-Europe routes, added pressure to supply chains as shipping volumes surged in preparation for the holiday shutdown in China. However, these factors had limited influence on POM prices due to ample inventories and lackluster downstream activity.  As a result, POM Injection-grade FOB Shanghai prices eased by 2.1% in November, reflecting the dominant impact of weak demand over supply chain disruptions. The Asian POM market continues to be shaped by a complex interplay of logistical challenges, sectoral slowdowns, and cautious buying behavior.

As per ChemAnalyst, POM prices in the European and Asian markets are projected to experience a further decline in December 2024. This trend is driven by year-end destocking efforts as producers and traders prioritize inventory reduction. The subdued demand observed in November, coupled with ample inventory levels, is expected to persist, exerting downward pressure on prices. Key downstream sectors like automotive, electronics, and industrial machinery are unlikely to show significant recovery during this period, aligning with broader economic uncertainties and cautious market sentiment. These factors, alongside continued efforts to clear stock before the year-end, are expected to maintain a bearish outlook for POM prices across both regions.