London (GC Intelligence) — European polyoxymethylene (POM) prices have caught up with the rest of the polymer markets as they have lately also been under pressure.
In Q2, when many polymers were registering sizable decreases, POM prices rolled over.
But now the picture in Q3 has changed. It seems that in the last round of negotiations most buyers have been able to secure decreases. Homopolymer grade decreased €20/mt, trademark grade €40/mt, and basic resin €125/mt.
The reason for the big drop in basic resin is that there has been more supply available. This is also to do with an increase in presence of competitive Asian material in this market segment. As demand in Asia is weaker, European players noted an increase in both volumes and sellers from the region.
There is downward pressure on prices across all POM grades from low demand, better supply and lower costs.
These negative factors will most likely persist for the rest of 2019. As such, POM prices in Europe should remain under pressure until the end of the year and possibly also in 2020.
NOTE: For price levels, forecasts, and a more in-depth analysis take a look at the GC INTELLIGENCE® Market Reports…→