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POM PRICES ROLL OVER IN Q4

November 14, 2019

LONDON (GC Intelligence) – European prices of polyoxymethylene (POM), also known as acetal or polyacetal, rolled over in Q4, according to GC Intelligence market assessment.

The rollover was a surprise for many buyers who were trying to secure decreases in line with most other engineering resins.

At the same time, there have been attempts by some producers to achieve higher prices in Q4.

The push for lower price had been justified by low demand from most key downstream sectors, such as automotive and industrial.

However, despite some of the slowdown in demand, there was enough balance in the market to allow sellers to resist lower prices.

Moreover, POM prices, are currently very low, and this might have been a factor in resisting further downside.

Another reason why there was some resistance to the downside was that there appears to be less pressure from POM from China. Some market participants noted slightly less competition from Asian imports.

Meanwhile, in Q1, it is unlikely that there will be much change in fundamentals and therefore there is a good chance that prices may roll over again.

A recovery, let alone a strong one, will probably not happen in 2020, at least not during the first half of the year.

The twin headwinds of Brexit and tariff disputes should continue to keep uncertainty high and confidence low, which in turn will ensure weak demand.

POM is used in many industries, including the automotive and industrial sectors, in applications such as gears, pump parts and housing parts.

NOTE: For price indices, forecasts, and a more in-depth analysis take a look at the GC INTELLIGENCE® Market Reports…

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