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EUROPE POM PRICES REMAIN STABLE IN JUNE 2024
price increases

Europe POM prices stable. Prices for Polyoxymethylene (POM) in Europe are stable, according to GC Intelligence market analysis.

Competitive imports continue despite logistical challenges and longer lead times.

Demand in Europe remains weak due to the heavy reliance on the construction and automotive sectors, which are still suffering from recent inflation spikes and overall economic weakness.

The outlook remains stable, with no significant downside expected. However, given the low demand, suppliers are finding it challenging to raise prices.

Stability is anticipated to be the most likely trend for prices possibly for the rest of the year.

POM, a high-performance engineering plastic, is widely used in precision parts requiring high stiffness, low friction, and excellent dimensional stability, such as in gears, bearings, and automotive components.


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GERMAN CONSTRUCTION SENTIMENT PLUMMETS
plant building

German construction sentiment plummets. The ifo Institute reports a historic low in German residential construction sentiment. The business climate index has fallen to -59.0, marking the lowest value ever recorded.

Business expectations also declined, reaching -68.9 points. Klaus Wohlrabe, ifo’s Head of Surveys, highlighted the sector’s bleak outlook.

He noted the significant impact of order shortages and project cancellations. Despite a slight improvement, Wohlrabe cautioned against optimism, citing unchanged tough conditions.

High interest rates and construction costs continue to challenge the industry. The ifo Institute’s findings emphasize the severe downturn in the residential construction sector.

Polymers such as PP, PS, PC, PMMA, and POM, are feeling the pinch of the construction sector’s downturn, not only in Germany but also across the EU. Market conditions for these polymers, heavily reliant on construction activity, reflect this trend, with many suppliers reporting low demand from the sector.

BASF OVERHAULS ULTRAFORM TRADE
distribution

BASF Overhauls Ultraform Trade: Starting October 1, 2023, BASF will fundamentally reshape its European operations by modifying the distribution tactics for Ultraform (POM).

The firm will hand over sales duties to its reliable commerce associates, ALBIS and Ultrapolymers Group.

This significant adjustment in the distribution model doesn’t diminish Ultraform’s standing within BASF’s assortment. Ultraform persists as an essential element of BASF’s engineering plastics.

Nonetheless, BASF will keep the research and development processes internal.

Such a strategy guarantees that patrons persistently profit from BASF’s pioneering solutions and comprehensive knowledge, specifically in solving technical complexities.

Ultraform is synonymous with BASF’s line of polyoxymethylene offerings.

These adaptable engineering plastics, tailored for durable components, are apt for a broad spectrum of uses, from automobile fabrication to healthcare technology and plant and mechanical engineering.

Even as BASF Overhauls Ultraform Trade, it remains committed to supplying superior materials to its varied clientele.

POM PRICES SLIDE TO NEW LOWS
POM gears

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.

EU CONSUMER CONFIDENCE REACHES RECORD LOW

EU consumer confidence reaches the lowest ever recorded level in July, according to the latest data from the European Commission.

The new numbers show a decrease of 3 percentage points for the EU and 3.2 percentage points for the Euro Area.

The new levels surpass the lowest point reached during the beginning of the pandemic, raising fears of a major economic contraction.

The polymer industry has been feeling a considerable pressure on demand which is to do with a multitude of reasons.

But this latest reading reinforces the view that consumer jitters over inflation, war, and a looming energy crisis are additional major factors slowing down demand for polymers.