POM prices slide to new lows in November in Europe, falling from the highs set when energy costs spiked to record levels.
Buyers experienced hefty increases in the past few months, especially when gas prices traded above €300/MWh in August.
As polyoxymethylene (POM) is one of the most energy intensive among engineering polymers, sellers asked north of €1000/mt during the summer.
However, the slide in gas prices and intense competition from imports, coupled with low demand in Europe has led to lower offers.
What is more, sellers happarently withdrew the surcharges announced to offset the rise in energy costs.
However, while the lower gas prices puts players in a better position, energy costs remain at levels multiple times higher than normal times.
Gas prices continue to show rather wild swings but for the past month settled at around €115/MWh.
Before the rally started in the second half of 2021, prices had been stable for years at around €20/MWh.
The persistent high gas values, which will likely continue for the foreseeable future, should also prevent European POM prices from retreating towards their historical long term trend.