For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Polyoxymethylene (POM) market in North America remained stable, with a moderate supply. Several factors influenced the market during this period. Firstly, there was weak demand from the automotive and electronics manufacturing sectors, which affected the overall market.
Moreover, the feedstock Formaldehyde prices also depreciated which contributed to the negative price movement of POM. Reduced demand for POM not only contributed to a further improvement in supplier delivery times but it also maintained downward pressure on purchasing costs. Deals for POM were moderate, as downstream users exhibited limited interest in stockpiling and showed a preference for making purchases at lower price levels. The price comparison between the first and second halves of the quarter remained stable.
The latest average price of Polyoxymethylene Injection Grade CFR Manzanillo in Mexico during the first quarter of 2024 was USD 3333/MT. Overall, the stable market conditions in North America during the first quarter of 2024 were influenced by weak demand, supply chain disruptions, and fluctuating feedstock prices. Mexico experienced some price fluctuations and a seasonal trend in POM prices.
APAC
During the first quarter of 2024, the Polyoxymethylene (POM) market in the APAC region experienced a decline in demand in South Korea, primarily due to sluggish performance in the automotive and construction sectors. The automotive sector saw a 3.4% decrease in sales in February compared to January, reflecting the overall slump in the industry. The construction industry was significantly impacted by the declining real estate market, leading to a prolonged downturn. Despite these challenges, there were no plant shutdowns recorded for POM in the APAC region during this quarter. The price of POM in South Korea witnessed fluctuations during the quarter. In March, prices increased by 1.3%, followed by a further 1.5% increase in April. However, in May, there was a decline of 1.3%. These price fluctuations can be attributed to supply disruptions in the Red Sea, the availability of product in the market, and improvements in demand from downstream sectors. Overall, the POM market in the APAC region, particularly in South Korea, faced challenges in the first quarter of 2024. However, there were no plant shutdowns, indicating stability in supply. The price of POM in South Korea experienced fluctuations, influenced by factors such as supply disruptions and improvements in demand. The quarter ended with a price of USD 2120/MT of Polyoxymethylene FOB Busan in South Korea.
Europe
Throughout the initial quarter, the European market witnessed a rise in POM costs, primarily fuelled by heightened demand from the downstream automotive sector. Despite these positive developments, consumer confidence remains notably subdued, signalling ongoing caution among consumers. Notably, the automotive industry in Europe is experiencing promising growth, particularly in the realm of electric vehicle (EV) batteries, thereby augmenting the demand for POM. However, the construction sector in European nations has faced prolonged contraction due to tepid consumer orders. Business sentiment within the eurozone's construction sector remains fragile, with firms anticipating a further decline in activity in the coming year. Despite the uptick in POM prices, the industry's reliance on the automotive sector remains pronounced, as evidenced by current market trends. With increased demand in this sector, POM manufacturers have adjusted their pricing strategies, accordingly, resulting in a widespread escalation in quotations. The quarter concluded with a Polyoxymethylene (POM) price of USD 4508 per metric ton on a Free on Board (FOB) Hamburg basis.
For the Quarter Ending December 2023
North America
In Q4 2023, Polyoxymethylene (POM) pricing in North America experienced a bearish market scenario, primarily attributed to an abundance of product supply and the influx of inexpensive imports from China. The demand from the downstream automotive industry in the United States remained moderately stable, as automotive sales witnessed only marginal appreciation, and nearshoring activities had yet to gain substantial momentum.
The global electronics sector faced ongoing challenges, marked by weak client demand as the year concluded. Companies consistently attributed the deterioration in operating conditions to global economic weakness, persistent inflationary pressures, and an increasing number of projects being put on hold. The market witnessed an ample supply of the product, resulting in sufficient stockpiles. Towards the end of the year, some discounted prices were quoted as the market sought to manage excess inventory.
As the year drew to a close, merchants in the domestic market adopted a just-in-time purchasing approach, displaying reluctance to accumulate excess materials during this period. Further, Mexico experienced a softer downturn in automotive sales, and destocking activities played a role in subduing the prices of the product in the region.
APAC
During the quarter four of 2023, the cost of POM exhibited to a mix trend in APAC region. In China, the POM exhibited to a decline pattern due to the sufficient supply and low demand amid decreased the cost of product. On the other side, the Korean market was the increase in production costs due to the rise in prices of feedstock Formaldehyde in the exporting Dutch market. This led to a moderate supply of POM in the South Korean market, resulting in a bullish market situation. In terms of South Korea, it experienced the maximum changes in POM prices during this quarter. The price trend exhibited a bullish trend, with a 1.5% increase compared to the previous quarter. There was also a correlation between the price of POM and the prices of feedstock Formaldehyde, which contributed to the price changes in South Korea. An important factor to note is that no plant shutdowns were reported during this quarter. The latest price of Polyoxymethylene FOB Busan in South Korea for the current quarter is USD 2326/MT.
Europe
In Q4 2023, the European Polyoxymethylene (POM) market experienced a stable environment characterized by moderate supply and demand conditions. The market observed consistent but moderate demand from downstream sectors, particularly in electronics and automotive, which remained stable amid the prevailing recessionary conditions across the Eurozone. Despite a notable increase of over 10% in automotive sales in November, the demand for POM within the automotive industry was recorded as low. The primary driver of this sales increment was attributed to heightened demand from the Chinese electric automotive industry, with a significant portion being imported from China. Towards the end of the quarter, weak purchasing activity persisted for POM, especially from downstream industries such as automotive and electronic sectors. Merchants, both domestically and in overseas markets, adopted a cautious approach, making purchases based on immediate needs rather than accumulating substantial inventories as the year concluded. The overall stability in the market was maintained due to the careful management of the gap between supply and demand.
For the Quarter Ending September 2023
North America
Prices of Polyoxymethylene have witnessed a marginally bearish trend in the North American market, with prices depreciating by 0.5% in the 3rd Quarter of 2023, despite prices of feedstock Formaldehyde marginally appreciating by 0.5% in the same Quarter. Even though the demand from the automotive industry continued to be strong, with automotive manufacturers reporting a double-digit in sales in the automotive industry, most automotive makers reported the clearing of existing lots. This consequently indicated lower consumption rates in the country. Adequate production rates during mostly normal consumption rates led to the creation of an adequate gap between the current demand and supply, which was essential in maintaining largely stable prices of the product. Moreover, exports to Mexico and South America were also stable and did not fluctuate in the third Quarter of 2023. Moreover, as consumption rates depressed, this consequently led to fewer imports of orders of the product being placed across Asia. Demand from the downstream electronic industry was also strong as high-interest rates have mostly contracted to purchase sentiments in the electronics sector.
APAC
Prices of Polyoxymethylene have witnessed a bearish trend across the Asian market, with prices depreciating by 4% in the third Quarter of 2023, despite prices of feedstock Formaldehyde increasing by more than 7%. Demand from the downstream sector, automotive, and electronics sector was marginal as the Chinese economy entered deflation in July 2023 as CPI declined to 99.7 with industrial activities also diminishing, and the PMI stayed below 50 in the first half of the 3rd Quarter. Purchasing sentiments did not improve as automotive sales continued a declining trend with depreciation of more than 7% in the 3rd Quarter. Demand from the downstream electronics industry was recorded to be moderately improving as the festive season neared, with purchasing activities yet to be materialized. Moreover, international exports to the North American market did not look healthy as prices of POM had also stabilized in the North American market. Moreover, economic conditions across Southeast Asia are yet to recover as production costs remain high due to rising feedstock Formaldehyde costs.
Europe
Prices of Polyoxymethylene have witnessed a bullish market situation in the European market, with prices inclining by more than 4% due to increasing feedstock Formaldehyde prices, which also increased by more than 6%. Demand from the automotive industry strengthened as automotive sales in the UK rebounded after depreciating in the first two months of the 3rd Quarter. With improvements being made in the current supply chain system across Germany, lead times it was increased, which further exacerbated the transportation costs. Moreover, demand from the downstream was also reported to be as key players reported rising the electronics industry as trading activities across Europe resumed, and overall improvements in the economic situation were witnessed. However, production rates remained below normal as input rates increased, and the European Central Bank is expected to increase interest rates again, which is further expected to increase factory gate charges. Deman is expected to increase further festive holidays which is again expected to increase purchasing activities in the downstream electronics and automotive sector.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, the prices of POM underwent notable stability due to multiple economic factors affecting the downstream sector within the region, leading to reduced demand. The pessimistic global economic conditions and other restrictive elements in the financial markets further compounded the situation, causing a drop in sales and profits for traders during this period. Moreover, the downstream industry, in the initial half of the quarter, was grappling with disruptions in the supply chain and inflationary pressures. Although major players in the POM market encountered supply-related issues, the demand for the product remained subdued, particularly due to the rising interest rates in the US market. The decision by the Federal Reserve to increase interest rates at the beginning of the quarter aimed at curbing inflation in the United States played a significant role in dampening demand in several downstream sectors, consequently influencing the prices of the product in the US market. Additionally, another contributing factor to the change in the POM price trend was the fall in the prices of upstream crude oil during this quarter, providing ease in the input cost pressure to the market players.
APAC
The Asia-Pacific (APAC) market saw a period of relative stability in POM prices Throughout the second quarter of 2023, characterized by minimal fluctuations. The offset by lackluster demand within the downstream automotive and housing segment in the region, causing concerns among market participants. China's economic conditions also played a role in dampening domestic market enthusiasm, primarily due to sluggish consumer sentiment. Moreover, slow offshore trading activities further pushed POM prices downward. The price stagnancy of POM during the mid-quarter was influenced by two main factors. Firstly, the volatility in overseas demand had an impact, contributing to the overall uncertainty. Secondly, the limited availability of inventories added to the price stability. As the latter half of the quarter unfolded, manufacturers responded to the bearish market conditions by reducing their production run rates. This decision, in turn, affected prices as it lowered inventory stockpiling for the commodity. Additionally, setbacks in the downstream processing industry following the Holiday season during the second quarter exacerbated the overall market situation. Traders have faced an oversupplied market since the Labor Day Holidays in May 2023, compounded by the drop in crude oil costs and feedstock prices. To sum up, the downward trend in POM prices for the APAC region during the quarter ending June 2023 was a result of weak demand, external economic factors, and oversupply in the market.
Europe
Throughout the second quarter of 2023, the European market witnessed a general lack of growth in POM prices due to reduced demand in the downstream automotive industry along with an abundance of inventories. The automotive industry faced a notable decline in offers, while increased inventories were a result of rising interest rates by the European Central Bank, which limited consumer spending during the second quarter. To address the challenging financial climate, market participants closely monitored the situation and implemented various strategies to navigate the downturn. These measures included scaling back production rates, optimizing expenses, and ensuring a stable supply chain. Additionally, the decrease in upstream crude oil prices also contributed to the overall decrease in POM prices during this period. Meanwhile, the global economic slowdown had lasting impacts, leading to constrained investments, heightened debt vulnerabilities, and funding shortages in the regional market. Consequently, the demand for POM in the downstream sector significantly decreased. As of the end of June 2023, POM prices experienced a monthly decline of approximately 2%.
For the Quarter Ending March 2023
North America
The prices of Polyoxymethylene (POM) in the US market have been fluctuating due to feedstock formaldehyde prices and moderate to low demand from the domestic market. The supply remained stable with no disturbances in the supply chain. However, the demand for POM has been low due to slow economic activities in the country, leading to a bearish market situation. In March, the US market faced a threat of an economic slowdown, with some major production companies putting their plant on maintenance. This led to significantly low demand from the domestic market, leading to a downtrend in POM prices.
Asia
Polyoxymethylene (POM) prices kept on fluctuating in the Chinese and Korean markets in the first quarter of 2023. In February, POM prices showed a marginal improvement due to rising demand and restocking by traders, while in March, prices continued to trend upward due to robust demand from importing countries and high production costs in the domestic market. However, POM prices declined consistently for three weeks in late March, owing to product abundance in the country and slow offtakes from domestic and overseas downstream buyers. Overall, the demand for POM remained low, while supplies were stable throughout this timeframe, except for partial disturbances during the post-lunar holidays restocking activities in China.
Europe
The price of Polyoxymethylene (POM) in the European market kept fluctuating due to uncertain market fundamentals, with demand remaining moderate to low. Despite some disturbances in the supply chain due to snow, supplies remained stable to firm, and the overall demand-supply gap was narrow enough to support the price trend. The threat of recession was decreased, generating optimism for future demand. As of 31st March, POM prices in the German market remained unchanged due to stable market fundamentals and a balanced demand-supply scenario, with a marginal improvement seen in the domestic automotive and construction sector. The easing of energy prices has also induced optimism regarding a decline in production costs.
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.
