For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Polyoxymethylene (POM) market in North America experienced a notable decline in prices, reflecting a negative trend in the pricing environment. Several significant factors contributed to this downward trajectory. Weak demand from key sectors such as automotive and construction played a crucial role in influencing market prices.
The subdued purchasing activity and reduced sales in these industries led to an oversupply of POM, exerting downward pressure on prices. Additionally, logistical challenges and delays in deliveries further dampened demand, contributing to the overall price decline.
In Mexico, the market saw the most significant price changes during this quarter. Moreover, the -2% change from the previous quarter in 2024 underscored the continued negative sentiment. A -1% price difference between the first and second half of the quarter further emphasized the declining nature of the market. The quarter-ending price of USD 3209/MT of Polyoxymethylene Injection Grade CFR Manzanillo in Mexico encapsulated the overall trend of decreasing prices in the region.
APAC
The third quarter of 2024 has been challenging for the Polyoxymethylene (POM) market in the APAC region, with prices experiencing a significant decrease. Various factors have influenced this downward trend, including oversupply, weak demand from key industries like automotive and construction, and logistical challenges. These conditions have created a bearish market sentiment, leading to a decline in prices. Additionally, the downstream sector continues to exhibit weakness, with downstream factories exercising caution in their procurement. There has been no improvement in orders, leading to a focus on meeting only normal start-up requirements. Cargo holders were adopting a wait-and-see approach, while downstream factories were cautious in their raw material procurement. Trading activity in the POM market was sluggish, with weak shipments from producers. In comparison to the previous quarter in 2024, prices have decreased by 3%, reflecting the ongoing price instability. The first half of the quarter showed a 1% decrease compared to the second half, indicating a continuous downward trend. The quarter-ending price of Polyoxymethylene Injection Grade EXW-Tianjin in China stands at USD 1726/MT, highlighting the persistent negative pricing environment in the region.
Europe
Throughout Q3 2024, the Polyoxymethylene (POM) market in Europe maintained stable prices, with Germany experiencing the most significant fluctuations. The market was influenced by a delicate balance between supply and demand, leading to price stability. Weak demand from sectors like automotive and construction, coupled with logistical challenges, contributed to the overall stable pricing environment. Despite a 14% increase in prices compared to the same quarter last year, prices remained unchanged from the previous quarter, indicating a consistent trend. Germany, a key player in the European POM market, witnessed no price variance between the first and second half of the quarter, reinforcing the stable pricing atmosphere. The quarter concluded with the price of Polyoxymethylene Injection Grade FOB-Hamburg in Germany standing at USD 4950/MT. Overall, the pricing environment for POM in Europe during Q3 2024 remained stable, reflecting a neutral sentiment with no significant positive or negative price movements.
South America
In Q3 2024, the Polyoxymethylene (POM) market in South America experienced a notable decline in prices, reflecting a challenging pricing environment. Several key factors contributed to this downward trend. Weak demand, particularly from crucial sectors like automotive and construction, played a significant role in driving prices down. Reduced buying interest and uncertainty in deliveries further dampened market activity, creating a subdued pricing atmosphere. The balance between supply and demand remained a crucial factor, with oversupply exerting downward pressure on prices. Additionally, a -2% decline from the previous quarter in 2024, and a -1% difference between the first and second half of the quarter were recorded. This consistent decline reflects a negative pricing trend throughout the quarter. The quarter-ending price of USD 2754/MT for Polyoxymethylene Injection Grade CFR Santos in Brazil signifies the overall decreasing sentiment prevailing in the market.
For the Quarter Ending June 2024
North America
Polyoxymethylene (POM) pricing in North America during Q2 2024 has been marked by an overall slightly increasing sentiment. Significant factors influencing market prices include heightened costs of raw materials, particularly formaldehyde driven by surging methanol contract prices, which have steadily risen due to soaring crude oil prices. Additionally, improved manufacturing activity, especially within the automotive and construction sectors, has led to increased demand, thereby exerting upward pressure on POM prices. Tightening vessel space availability and rising freight rates compounded these cost pressures, further driving up the price of imported cargo materials.
Focusing on the USA, the market has seen considerable price changes this quarter. Despite the overall economic growth, the manufacturing sector experienced a deceleration, leading to moderated demand. However, this was offset by robust activity in the construction sector, reflected in increased employment and improved purchasing sentiments. Seasonality played a role as well, with the latter half of the quarter showing a noticeable price increase compared to the first half, noted at 3%.
The quarter ended with POM prices reaching USD 3096/MT CFR US Gulf, reflecting a gradual yet firm upward trend. Overall, the pricing environment for POM in Q2 2024 in North America, particularly the USA, has been positive, driven by critical factors in raw material costs, demand shifts, and logistical challenges.
APAC
In Q2 2024, the Polyoxymethylene (POM) market in the Asia-Pacific (APAC) region experienced a mixed trend in prices, reflecting a consistent weekly bearish trend. Several factors significantly influenced this downward trajectory. Firstly, the persistent oversupply exacerbated by high inventory levels from manufacturers led to an imbalance in the supply-demand dynamics. Secondly, subdued demand from crucial downstream sectors, particularly automotive and construction industries, further pressured prices. Additionally, the cost of POM in the Chinese market remained unchanged this quarter due to weak orders from the downstream construction and automotive sectors. Continued heavy rains impacted construction projects in South China, resulting in a business activity index of 52.3 percent for the construction sector, 2.1 percentage points lower than in May during June 2024. The latest quarter-ending price for Polyoxymethylene FOB Busan in South Korea settled at USD 2161/MT. This consistent decline indicates a negative pricing environment, driven by high supply, weak demand, and external economic factors in South Korea. The overall sentiment in the POM market for Q2 2024 in the APAC region, particularly in South Korea, remained predominantly negative, reflecting the challenges faced by the industry in maintaining price stability amidst unfavorable market conditions.
Europe
During Q2 2024, the Polyoxymethylene (POM) market in Europe remained on a surge, largely due to a consistent increase in demand and supply disruption. The pricing environment maintained equilibrium despite various macroeconomic pressures, including inflation spikes and logistical challenges. The stability in the second half of the quarter was underpinned by sufficient product availability meeting the subdued demand from key sectors like automotive and construction, both of which faced downturns due to high costs and reduced consumer spending. Input cost reductions and improved supply chain efficiency further contributed to price stabilization. Seasonality played a minimal role, indicating consistent market behavior without significant fluctuations in demand or supply. Focusing on Germany, where maximum price changes were observed, the overall market trend echoed the broader European stability with a nuanced perspective. The price comparison between the first and second half of the quarter showed no change, marking a stable trend throughout Q2 2024. At the quarter's end, the price of Polyoxymethylene Injection Grade FOB-Hamburg stood at USD 4945/MT. This consistent stability in pricing indicates a neutral market sentiment, neither overly positive nor negative, as the industry balances between adequate supply and moderated demand amidst challenging economic conditions.
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.
